Why physical brick and mortar businesses are not working
E-commerce—The Story Is Told In Statistics
– According to U.S. Federal government reports, E-commerce continues its growth with considerably gains, and that is why physical brick and mortar businesses are not working. “Total e-commerce sales for 2006 were estimated at $108.7 billion, an increase of 23.5 percent (± 3.3 %) from 2005”.
This was not unexpected when you think about all of the brand new small companies started and that currently 60% have an online presence at the time of this report. This is even more startling when you consider the phenomenal increase of internet users. There were roughly 142 million internet users in 2001 and 211 million internet users by 2006. This is partly due to the growth of internet users shopping at home on their computers to find and purchase items or services online instead of fighting crowds and traffic. Now the growth is mushrooming as more people worldwide have access to the internet with smart phones and mobile devices.
During the time from 2001-2005, spending online increased in all age groups. Forecasts are indicating that each internet consumer will be spending over $800 with an e-commerce company this year.
What makes this forecast all the more amazing is that if your business had an internet presence this year you would get the opportunity to reach a marketplace of 211 million possible consumers who might agree to spend their money with your company online.
You may be looking at $800 per internet consumer and thinking, “That’s not as much as I believed it would be.” It is true that at the present time individuals will invest more in standard traditional stores than they will online, however, the scales are tipping towards internet purchasing being the number one method of product buying and may surpass brick and mortar stores when all of the numbers are tallied at the close of 2015 and the bigger picture of the global customer base is brought in the equations.
Each customer may spend less that $800 with you than they might in a traditional brick and mortar building, however, your business is going to have so many more possible consumers to market to, the sales opportunities are endless.
Remember that you will have the opportunities and the ability to tap into an income stream that is not available to those more traditional brick and mortar stores not currently using the internet at all.
Do you know why some of the largest brick and mortar businesses are establishing an online presence? These businesses have finally seen that the internet is a cost-effective method to handle an international client base. The internet also enables these big sellers to carve out pockets of potential customers when and where their physical retail presence is not readily available.
In reality, these larger brick and mortar businesses are finding that their online stores function as a high-tech catalogues. Long gone are the days when the big store would deliver their full product line catalogue to every home across the United States. Today, printed copies are few in number and are only sent out when requested because customers are now looking online to see what products are currently available. If the store is managing its inventory correctly, the customer can also learn all of the information they would need to make a decision to buy or not – the quantities available, sizes, colors, prices, shipping and guarantees.
As you can clearly see, the development of online sales markets will level the playing field for all e-commerce stores. Your businesses placement on the internet is only restricted if you choose not to work your business plan which should include SEO techniques (Search Engine Optimization) and other marketing methods.
To be in the forefront of your competition, utilizing an online store will be the effective method to handle business in a competitive and international market.
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