Before we get into the weeds of the E-commerce world, let’s first answer one fundamental question:
What is E-commerce, anyways?
Simply put, E-commerce refers to commercial transactions conducted online. This means that whenever you buy and sell anything using the Internet, you’re directly involved in E-commerce.
Whether you’re someone who wants to start your own E-commerce business or you’re already running an Internet marketing site and just want to learn more about the industry, you’ll find both wisdom and change that has occurred in business in the brief pieces below.
The Simple Reasons Why Traditional Retail Has…Failed
A local business owner at Best Buy says, “I’ve been sitting here all day, with a limited selection and a paid staff of workers, waiting for you to stop by and buy something I hopefully have on the shelves. I’m paying way too much in rent, just waiting for you to come in, try out some electronics and pay for them.”
A modern online retailer says the following, “I can use the same size staff (if not smaller) to service hundreds of thousands of people (if not millions), not only a few thousand. I have a much bigger inventory, of course, but thankfully my rent and my staffing costs are a dime compared to yours. And, so what I sell you costs a lot less money.”
The local business owner depended on two groups of people: Individuals who needed or wanted the hands-on service, the ability to play with gadgets, try things on, and the chance to talk with individuals in person. And, people who didn’t demand those things but had no choice because there were no other options at the time.
When online shopping and E-commerce showed up at the party, the second group left. And with just the first group remaining, most local retailers’ futures have already been determined.
The answer isn’t to figure out how the hell you’re going to compete with (or be as low as) Amazon and Walmart…because you cannot.
The answer is to figure out how to find the people (and the products and services they already demand and buy on a weekly, monthly or every other month basis) so you can eagerly and comfortably charge a fair market price.
As a whole, the E-commerce industry is going to keep growing. And, with all due respect, I sincerely hope you don’t get left behind in the dust or traditional ways of viewing business in the modern world.
As Bob Dylan once said, “The times they are a-Changin’”.
My Very Best,
Donovan E. Vogel