Particularly in the shadow of the COVID-19 pandemic, eCommerce is booming. Amazon—the largest retailer on the planet—saw their net sales rise 40% in the second quarter of 2020.
That’s barely even news, compared to Walmart, which reported a 97% surge in online sales in the same period. And that’s following a nearly 75% increase in Q1. As if that weren’t impressive enough, look at Target, whose online sales jumped 195% in Q2. In April alone, Target’s online sales rose a mind-blowing 282%.
As noteworthy as all that is, today I’d like to move to the other end of the spectrum, and focus on small business. By 2016, barely 1 in 4 small businesses used the web to conduct sales. 46% of small businesses don’t even have a website at all.
To be fair, most small businesses at least maintain an online presence of some kind. Only a small percentage is actively engaged in eCommerce, though. That would be bad enough under normal circumstances. But, given the current global situation in which people are venturing out of their homes as little as possible, a business that isn’t leveraging its website as a sales channel is practically dead in the water.
Admittedly, no one could have anticipated our current predicament. But what about the next event that comes along with the potential to upset the retail apple cart? Is there any reason to assume we’ll see that one coming?
If you’re a small business retailer who’s ever considered selling from your website, now would be the time. But it still doesn’t seem to be happening.
What’s the Holdup?
Digital channels give small businesses 24/7 access to customers all over the world. Branching into online sales means reaching a wider audience than ever, at any time, with relatively little additional overhead. So why aren’t more businesses jumping on board?
Generally speaking, lack of knowledge seems to be a key consideration. Online selling can feel like a completely new experience. Merchants tell me they don’t understand it, and they can’t afford a learning curve. This overall reluctance can be broken down into more specific reasons, such as:
- They’re used to dealing with customers face-to-face. Digital interactions feel impersonal and intimidating.
- They’re concerned about fraud. It’s harder to validate customers’ identities when can’t physically see them.
- They lack an inventory system and/or fulfillment process with which they’re comfortable.
- They’re concerned about product returns. Online customers can’t simply bring an item to the store; they must contact the seller, arrange return shipping, and wait for delivery.
- They don’t want the responsibility of extra data security required. Card-not-present businesses handle a larger amount of sensitive customer data.
- Finally, just arranging to sell from a website isn’t enough. In today’s multi-channel world, eCommerce needs to function seamlessly across multiple systems and devices.
Listed out this way, it’s easier to see why selling online can seem like a can of worms that smaller retailers feel like they can’t afford to open. But, given the apparently unstoppable surge toward eCommerce, can you really afford not to?
The Case for eCommerce
For my money, the biggest perk of eCommerce is simply a matter of “bang for the buck.”
As I alluded to earlier, going online means moving onto a much more level playing field. The minute you start selling over the web, you expand your reach to a national or even global market. That’s not the only argument for considering a move online, though. Here are some other benefits:
It sets you apart
The stats I quoted above point to two facts: one, there is a substantial market for online sales, and two, your competitors aren’t tapping into it. Right off the bat, having your own eCommerce store differentiates you from the majority of small businesses out there.
When you move online, you’re playing with the big boys. Your new potential customers will judge you based on the same criteria they do any other online retailer: “Does this merchant have what I want, at the price I want to pay?”
You may think you’re not ready to compete with the likes of Amazon or Walmart. The truth, though, is you’re already in competition with them. Selling online simply gives you access to a lot more of their customers.
You control your brand image
Smaller businesses are often thought of as offering more personalized service, while the giant retailers are known for selection and lower prices. Online, however, you control your brand image. Here, the smallest e-retailer can look and function like a big box store, while a larger merchant may wish to nurture more of a hometown, boutique feel.
With eCommerce, you’re not limited by shelf space, number of locations, hours of operation, or many other factors that constrain brick-and-mortar stores. Use that to your advantage.
Your marketing can connect more directly with customers
Even if your advertising efforts are focused on your local area, the most effective marketing these days occurs over the internet. Imagine how much more effective that marketing will be if you can sell directly from your own site.
For example, let’s say you’re advertising on social media. A call to action asking the customer to call or stop by is automatically limited to your business hours. An online ad that offers a link to your store, however, means customers can start shopping with a click.
It can boost customer retention
Selling online not only helps you draw in new customers, it can help you retain them as well. Once customers find you, they can easily return to your store at any time. Get them to sign up for an email newsletter, and you can give them more reasons to return.
Encourage customer retention even further by offering bonuses. Use loyalty programs, rewards points, discounts on future orders and more to incentivize shoppers to bookmark your site and return.
Customers have come to expect it
While the current economic situation may have accelerated things, the move to online shopping has been gaining ground for the last decade. Consumers are more and more comfortable with the idea of buying the things they need by clicking. The more eCommerce (and mobile commerce) gains acceptance, the further behind small businesses who fail to offer online purchasing will slip.
Spend Less, Make More
In reality, all of these reasons are just subsets of the main rationale for online selling: your bottom line. When you sell online, you’re reaching all those potential shoppers who use the web for everything from research to socializing.
Marketing to even a fraction of those consumers by any other means would blow most merchant’s advertising budgets through the roof. Investing less money and making more…isn’t that every merchant’s goal?
Moving into a whole new sales arena can be scary; so much so, in fact, that merchants are reluctant to even try. The pandemic-fueled crisis may be just the push small businesses need to move past their doubts into the profitable world of eCommerce.
