How E-commerce has Changed the Face of Business for Small Business Owners
The entire world is undergoing this online revolution, which has changed the way of life of everybody. Time and again technology has only made things easy for everybody in every possible field.
According to a new study by Forrester Research, approximately a fifth of total retail sales will take place online by 2021 in Asia Pacific, with 78 percent of that coming from mobile, up from 63 percent in 2016. The study adds that online retail via mobile will grow at a CAGR of 15.6 percent, to reach $1 trillion in 2020, up from $539 billion in 2016.
China accounts for nearly 80 percent of online retail sales in Asia Pacific, and Forrester expects it to become the first market to reach $1 trillion in online retail sales in 2020. Indian market is expected to reach $64 billion by 2021, growing at a five-year CAGR of 31.2 percent.
E-commerce is the new name of business, especially for the budding startups, aspiring entrepreneurs and businessmen.
Here are a few reasons to justify, how e-commerce has changed the face of business for small business owners:
1. Unlimited Outreach:
Unlike the traditional ways of business, where one opens a brick and mortar shop, which is used by the people of the locality, who are aware of the existence of it and are the only limited consumers of the product.
The e-commerce has opened the gates for customers, across the world and one does not even need a brick and mortar model.
Not only the local people but also the people from across the globe can use the product sitting at their respective homes.
The reach as well as he business is not bound by any sort of boundaries. It has got unlimited reach as well as unlimited exposure.
2. No Middlemen’s Interference:
The traditional method included the middlemen in between the consumer and the businessmen, who happened to eat away a large chunk of profit, exploiting the businessmen and the consumers.
In the e-commerce business, there is no involvement of middlemen, hence the exploitation part is omitted, and the businessmen get his fair share of profit. Moreover the farmers or product manufacturer gets the fair amount of his labor and hard work. The consumer too is getting his product in reasonable price. The businessmen increases or reduces price as per his wish.
3. The business or the shop is open 24/7:
There is time difference between India and other western or other countries. Thus to keep the business going, one has to work tirelessly throughout the day and night time.
Also there is time constraint for opening and closing the business or the shop in old school methods.
The e-commerce provides the business, the liberty to keep it open all day and night long, without any fear of losing business or customers.
The online order placing and payment option also makes it easier to keep the business going all throughout the year.
The e-commerce business, especially for the small business owners has proved to be a boon. They get equal exposure as that big business owners get.
Moreover the small business owners or the ones who are expecting to open a business in near future too gets ideas to explore in every possible idea though the existing successful companies, or they can ask for business guidance from them directly or they can request them to help in establishing their idea through collaborations.
The small businesses can collaborate with successful companies to get more exposure and brand value borrowed from the other, which will give an initial boost to the companies.