WHY YOUR BUSINESS NEEDS AN E-COMMERCE WEBSITE

It is hard to think of a school for toddlers without colorful letters and images. That has become true for businesses today and e-commerce websites. In this hyper-connected world, when you tell someone about your business, and they are interested, a question about your website often follows.

This makes people who are starting a business wonder, “is an e-commerce website an unnecessary expense or a profit booster?”. There is also some uncertainty for service-based businesses. If a business is not selling a physical product, is there still a need for an e-commerce website? In this article, we will explore why your business needs an e-commerce website. 

• What is an E-Commerce Website?

An e-commerce website is an online platform where businesses display their products or services, and customers can make orders and payments from anywhere in the world. E-commerce websites can be built from scratch by web developers, or created using software platforms. 

They serve as online marketplaces. A customer can visit the store, browse through the available items for sale, learn more about descriptions and price, make their selection by adding to their online carts, then proceed to checkout, where they pay for their purchase, through different payment methods. 

If it is a physical product, the cost of delivery is often included in their bill. After they make their purchase, they receive what they paid for either immediately or after a specified period of time. All this happens without any physical contact between buyer and seller. 

Examples of popular e-commerce platforms include Shopify, Amazon, Etsy, eBay, and Selar. 

• Does My Business Need an E-Commerce Website?

Yes, it does. There are various reasons why your business needs an e-commerce website. These will be discussed in this article. 

In the 21st century, the internet has become a necessary part of modern business operations. Any business that wants to make profit and scale cannot ignore its presence on the internet. Digital transformation is a growing trend across industries and sectors. More business owners are embracing the wide benefits that come from embracing the power of the internet. 

An e-commerce website helps businesses maximize profit, which is the aim of every business owner. It does this by bringing the business in front of millions of potential customers, appealing to the desires and wants of these customers, and positioning the business as the best solution provider to meet the customers’ needs and wants. 

The perceived value and influence of a business is enhanced by their online presence. An e-commerce website positions the business as a player on the global stage, and serves as a source of valuable insights that can be used to optimize marketing campaigns, streamline operations, and increase sales, with the end goal of making the business profitable. 

• Why Does Your Business Need an E-Commerce Website?

The internet age has made the world a global village. People in one continent can purchase goods and services from businesses in another continent, all at the click of a button. People can form personal connections with businesses that makes them become repeat customers and “evangelists”, preaching the business to their friends and family. 

An e-commerce website provides a business with an online presence that attracts customers from all over the world. It brings in customers that the business would not have been able to reach otherwise. This is the power of the internet. It enables the business to increase its revenue and profits because of a larger customer base. 

These are the benefits your business gets from having an e-commerce website:

Increased Sales: Customers around the globe can place orders on the website without location barriers. Your business can sell to people in different countries and continents through the internet. This results in more sales for your business. 

Imagine if you only had a physical store. Customers would have to drive down to your store to make purchases. In other words, you may lose some good customers because of distance. An e-commerce website takes all that stress away, and makes purchase easy and stress-free, all at the click of a button. 

Reduced Operating Costs: An e-commerce website serves as an online store for your business. Unlike a physical store, it does not require rent or a large number of staff, which saves money for your business.

The initial costs of creating an e-commerce website yield great returns in the long-run. Compared to recurring and frequent costs like rent and salaries of extra staff, the costs of an e-commerce website are less intensive and contribute more to the bottom line (profit) of the business. 

No Time Limitation: If your business has a physical location, it likely will not be open 24/7. Your customers can only walk in during business hours. With an e-commerce store, your business can get sales 24/7. 

Most physical business offices have a closing time, except those that operate on shifts. Many customers might not leave their houses at night to make a purchase that is not urgent. An e-commerce website removes this limitation. Customers can purchase at any time of the day (or night), which brings more revenue to your business.

Established Brand Presence: An e-commerce website amplifies your business brand on the internet. This improves publicity and brings your business in front of many more people.  

When your business has a website, it has what is called an “online presence”. The business becomes familiar to a much larger audience and can compete on a much bigger scale, than one without an online presence. Having an online presence also enables customers to engage and connect with the business. This enhances customer loyalty. 

Tracking Customer Data: An e-commerce website makes it possible to collect customer data. This data is then analyzed to find useful insights to optimize marketing campaigns and enhance customer satisfaction and loyalty. 

Customer data can be collected (with consent) either through cookies, or personal information like contact details and emails. Cookies can be used to create targeted and personalized ads to increase sales, and customers can be nurtured to buy from a business through email marketing. 

Customer Nurturing: When customers visit your e-commerce website and do not buy immediately, you can collect their email addresses through the website. You then send them emails periodically that encourage or “nurture” them to want to buy from you. This increases sales. 

Some potential customers may explore your e-commerce website without purchasing anything from your business. Nurturing is a way to remain at the forefront of your customers’ minds. So when they have a need or want that your business solves, they are willing and eager to buy from your business. 

Effective Sales Funnel: A sales funnel is a journey you take your customers on that leads them from awareness to purchase. An e-commerce website is an essential part of an effective sales funnel, as that is where the purchase will happen. 

Sales funnels are an important part of marketing. They take people who are unaware of your business or the solution that you offer through a process that leads them to patronize your business. An e-commerce website is often where the purchase takes place, and this makes it an important part of your business's sales funnel. 

• Is an E-Commerce Website Only for Product-Based Businesses?

Whether your business sells goods or services, an e-commerce website is needed. Businesses producing tangible products are not the only businesses that require e-commerce websites. 

Customers place orders for goods and make payments online. The goods are then delivered to them. For creatives, including photographers, script writers, and make-up artists, an e-commerce website enables clients to discover these businesses. The clients can then book the vendors for gigs. 

Service-based business owners can also use their e-commerce websites as a way to boost their online presence, and as an additional touchpoint for customers to connect with the service provider. 

In addition, the customer data that is collected through the website can be used to optimize marketing campaigns, create targeted ads, and send personalized newsletters that increase the chances of repeat bookings. 

Both product-based businesses and service-based or creative businesses can benefit from having an e-commerce website.