Online shopping is a booming business.  Companies increase their global reach while consumers conveniently shop from anywhere.  The days of the brick-and-mortar store are quickly becoming replaced by eCommerce.

E-Commerce is the buying and selling of goods or services over the internet.    The platform allows people to buy or sell anything they want, including furniture, apparel, and software.

The future of eCommerce is bright. Global eCommerce sales are expected to total $6.3 trillion worldwide in 2023, and over $8 trillion by 2026.   China is the world’s top eCommerce market, with $1.5 trillion in sales in 2022.  The United States is in second place, with $875 billion.

Reasons for eCommerce Growth

E-commerce has been around for awhile, but grew significantly following the 2020 pandemic. There are no signs of it slowing down anytime in the future.  The main reasons consumers prefer online shopping are free delivery, coupons and discounts, customer reviews, fast checkout and easy return policies.  E-commerce will no doubt grow even more as the internet becomes more accessible in different parts of the world.

By the way, Amazon is present in at least 58 counties, and is the most popular eCommerce business worldwide.

The eCommerce Boom Driving Forces

Mobile Devices are among the driving forces behind the recent surge in eCommerce.   According to a 2022 report, more than two-thirds of the world’s population, which stands at about 8 billion, uses a mobile phone.  Mobile devices make it easier for people to buy and sell online, and enhanced payment methods are playing a key role.

Improved Customer Data. Businesses watch their customers online and go all out to personalize their experience.  These are tailored based on the consumer’s past transactions. Insights are obtained from their buying history and product offers are suggested that match their interests.

A Personal Touch. Consumers love personal attention and engage more when they receive it.  You want them to have a positive experience shopping on your site.   People shop online for convenience, to save time and money.   They tend to search for good deals and like easy-to-get product samples that match their interests.

Low Operating Cost. It’s less expensive to operate an online store than a brick-and-mortar one.  E-commerce eliminates the need for a physical location.  Online shops also reach a global audience and can be accessed from anywhere in the world.

E-Commerce Benefits  

There are many benefits to having an e-Commerce presence.  Businesses can sell their products on a global scale.  Consumers can quickly browse through items and easily buy what they want.  Having an online business is cost-effective. There are also affordable advertising and marketing opportunities online. Product listings can be personalized as well.  Customers also have the flexibility to shop anytime.

There are also several payment options available for making online purchases.  Their ease and convenience is a big draw.  The shopping cart is another advantage. This is where people place purchases they want to make. If they don’t complete the check-out, it’s easy for a business to follow-up with them.

Need a Business Growth Advisor?

At Lodestar Advisors, we work with you to define and refine your strategic business plan. If you are ready to work with a top-notch business advisor, give us a call at 443-280-0890 or send a message. Just use the  online form at the bottom of our webpage. We can’t wait to start this journey with you!