Understanding the emerging Nature of e-commerce.

 

Today, virtually every aspect of our culture has an Internet counterpart; people work online, bank online, check mail online, even make friends and date online. So it only makes sense that online shopping has become an increasingly integral part of our society, exceeding $200 billion in sales in 2008 alone. The Internet economy is booming. E-commerce sales are expanding by leaps and bounds at a rate of 20% to 25% growth each year, indicating a momentous shift in consumer spending habits. Those who don't change with the time will become obsolete.

         

Shoppers are turning to the Internet rather than phone directories for convenience, product reviews, and up-to-the-date information. A business owner simply cannot rely on an advertisement in a phone book. In fact customers are fifteen times more likely to look on the Internet than they are to flip through a phone book to call a company. Research consistently shows that consumers place less credibility in a business that does not have a web site as opposed to one that does. The more personal the service (hair cut, tattoo, financial, counseling, legal, etc.), the more research customers want to do to ensure they are comfortable with the service provider. The more potentially expensive the service (legal, medical, automotive, travel, construction, real estate. etc.), the more comparisons customers want to make sure they get the best value for their dollar.

         

In order for a business to stay successful it is imperative that selling habits are adjusted to match the change in consumer buying habits.  More simply expressed businesses must sell the way their customers shop or they will buy elsewhere. Even some of the more elaborate websites that allow customers to make purchases online can cost less annually than a typical monthly phonebook ad; therefore making perfect sense for businesses to evolve with the times. Every business is different, but each is going to require the power if the Internet to stay competitive.

         

In the long run the net operating costs of a Website becomes insignificant compared to the return on the investment that the advertisement delivers. No other form of marketing compounds value and spreads like an effective Website. Especially when your website works for you even while your attention is focused on the day-to-day management of your business. After-hours, on weekends, and even while you are away on vacation, your Website is dutifully available to potential customers so they can visit your business and is a marketing tool that people can explore regardless of your business hours. Websites are the only marketing tool with the means of effectively contacting consumers (using a website with a customer mailing list) to offer a customer loyalty discount or special pricing for an upcoming holiday season or sales event, which would garner attention and create purchases. 

         

Websites value to your customer's shopping experience while simultaneously adding value to your business. So don't fall pray to the mindset that "if my business is not on the Internet, than the Internet is not affecting my business." Quite the opposite is true. If people can't find your business online, you're losing money at an ever-increasing rate as more consumers join the ranks of online shoppers. There are few marketing tools as versatile and useful as a website. You are not only open for business even after your doors are closed for the evening, but you now have a representative that acts like a commercial and plays around the world 24hours a day, 7 days a week. All while being able to collect data of how many people saw your ad, what words they used to find it, and how long they took to read it. If properly marketed, your Internet business presence will become a significant profit center for you, while allowing you to do more with less. That's just smart business.