5 Reasons Why You Should Be Selling Online
Online retailing is expanding rapidly, with around 30% of the retail market now located on the net. Traders that don’t engage with the benefits of selling online might experience a downturn in business as customers persist with their migration to online shopping.
It can be challenging to realise how transitioning to an online or hybrid marketplace could benefit your business, so join us as we take a look at 5 reasons why you should be selling online.
1. Reduce Your Costs
Setting up or moving your existing business online could save you money in several ways. For example, the average monthly cost of prime retail premises in the UK can range from £1,139 in Birmingham to £1,609 in Edinburgh to an eye-watering £14,355 in London’s desirable West End.
By deciding to sell online, many of these costs can be avoided or reduced, as can other outgoings such as hiring and retaining shop assistants and running costs. With 77% of businesses saying that energy pricing is their biggest risk, it’s clear that the international energy crisis is hitting retailers hard. By taking your business online, you could make substantial savings compared to a traditional retail model.
The subsequent advantage of selling online is that any money saved from avoiding expensive overheads can be reinvested into growing your business, developing your e-commerce website or extending your product range.
2. Compete with Larger
Relocating or starting your business online could allow you to punch above your weight when competing with large, high-street retailers. As we mentioned above, the start-up and running costs of a traditional retail business can be substantial, and smaller companies might lack the seed capital to invest in this way.
But one of the benefits of selling online is that you can access a pre-existing market without competing with big businesses in terms of expenditure. With sites like eBay and Amazon falling in the top ten most visited sites in the UK, it’s easier than ever for entrepreneurs to tap into a market of over 600 million potential customers.
Another example of how much more beneficial it can be selling online is the ability to run your business 24 hours a day, 7 days a week. While traditional retailers must comply with opening hours regulations and pay staff to manage the premises, an online retailer can be accessed any time of day or night, allowing a comparatively small business to compete with larger high-street retailers.
3. Reach a Global Audience
If you’re considering opening a retail business in the traditional way, your initial audience will likely be limited to your local area. Building a brand and expanding your business to multiple premises is costly and time-consuming. One of the advantages of selling online is that you can access a broader, often even global, customer base without leaving your office.
Not only does this allow you to access a more significant number of potential buyers, including customers who might never have discovered your product, but it also increases your appeal via word of mouth.
With families and friends living far apart and staying connected online, having an internet presence for your business means that loyal customers can refer your products to others in a way that wouldn’t be possible for a traditional retailer.
All of this translates to an increase in revenue and brand equity, as the more attention your business receives, the more value it has.
4. Grow Your Business Faster
Growth is essential to almost all businesses, whether building a more extensive customer base or increasing brand awareness and publicity. This is another critical reason you should be selling online.
Things that might hinder the growth of traditional retailers, such as expanding and retaining your staff base, acquiring larger or more disparate premises or even modernising existing facilities to maintain a stand-out customer experience, have a reduced impact on online businesses.
While the soft tasks of business growth would still be relevant (creating a strong brand, defining your company culture and looking after staff wellbeing, for example), the practical obstacles would be significantly reduced.
It’s clear, then, that shifting your business to an online or hybrid model can help you grow faster and more efficiently than your traditional competitors.
5. Use Customer Intelligence
By managing an online retail business instead of a ‘bricks and mortar’ facility, you can use customer intelligence and data analytics to target new customers and gain insights into your customers’ needs.
Being able to track and analyse the purchasing habits of existing customers allows you to tailor their shopping experience and make it more personalised and engaging, which, in turn, goes a long way to building customer loyalty.
Another advantage of selling online is that it allows you to publicise your brand using data analytics to provide targeted ads to groups who may be interested in your product. Whereas traditional advertising relies on word of mouth and media publications, analytics-based advertising can identify and target potential customers and bring them to your site, increasing brand awareness and customer engagement.
Thinking of Moving Your Business Online?
If you want to exploit the benefits of selling online, here at One2Create, our team of talented and experienced marketers, developers, and creatives have the know-how to help you maximise the advantages of online retail.
Drop us a line or read through a few of the blogs below to learn more about what we can do to help you adapt your business to the online world.