In recent years, there has been a surge in the number of internet users. A large number of these users spend their time browsing and purchasing goods and services online. Below are the key reasons why ecommerce is important for businesses and consumers:
1. Wide range of products
Brick and mortar stores have a limited inventory of goods. As a result, consumers are forced to visit multiple stores to find their desired products/services. With ecommerce, it is easier for customers to search and make purchases from the comfort of their homes. They can peruse through a wide range of products within minutes and make their purchases instantly. Ecommerce has made the lives of consumers easy and convenient.
2. Low cost
Traditional retailers sell products or services at relatively higher prices without lowering their rates. This is mainly attributed to the overhead costs. Ecommerce allows businesses to eliminate overhead costs such as store rent, management, inventory, security, counter, transportation, and others. Therefore, it reduces the fixed cost and variable costs, and consumers get their products/services at a low and affordable rate.
3. Fast consumption and less laborious
Ecommerce has changed the way people consume products and services. Students no longer need to attend classroom sessions to take study courses; they can do their courses online, that too, at their own pace. Similarly, consumers do not need to spend time physically, shopping for products or services. They can get their products delivered at their doorstep, and focus on other tasks at hand.
4. Exquisite offers and deals
Traditional brick and mortar stores do not offer deals or discounts unless there is a festive occasion. With ecommerce, customers can avail regular offers or deals throughout the year. Ecommerce connects people and removes physical boundaries by offering great deals at the right time.
Ecommerce has made transactions between sellers and buyers more transparent. The use of Point of Sale (POS) machines and UID integration with bank accounts enables the government to check where the money was spent, why it was spent, and what was its source. The transactions taking place on ecommerce platforms are mostly digital, which is through credit cards, net banking, PayPal, and other modes. Ecommerce ensures that a record of the transactions is maintained to prevent fraud, tax evasion, and money laundering.
6. Low maintenance cost
Ecommerce has delivered higher profit margins for businesses. It has helped reduce manpower costs by automating tasks such as inventory, order management, customer management, and more. Enterprises find investing online cheaper than investing in a physical store, as the operation and maintenance cost is less and a one-time task. With the integration of artificial intelligence (AI), machine learning (ML), and cloud computing, it has further minimized the functioning and operational cost for businesses. Most ecommerce websites have tie-ups with delivery or courier agencies, which also reduces their package and delivery costs.
7. Customer retention
With ecommerce, businesses can retain customers by sending them new products/services recommendations, offers, deals, and discounts based on their previous transactions and buying preferences. Traditional stores do not have much data on their customers, and they are unable to retain their customers, as they need to continually provide them with premium quality products/services to keep them loyal. With ecommerce, businesses are perpetually in touch with their customers through notifications, messages, and cold calls. This keeps the customer engaged and improves brand loyalty.
8. Personalized experiences
When customers explore and interact with ecommerce websites or other websites, data is captured and stored. Online businesses use this data to deliver a highly personalized experience for each customer at the right time and place.
9. Better production of digital products and services
With ecommerce, brands are creating new and innovative products/services, small businesses are flourishing, and the solutions are accelerating development. Ecommerce is a boon to people as it not only provides them with good quality products/services but also provides job opportunities and improves their quality of life.