The age of e-commerce has arrived. In the United States, E-commerce is an industry that has grown to worth $200 billion plus. E-commerce is expected to grow up to 15% per year as consumers realize that buying in malls is not anymore the only way you can purchase goods. There is now a competition between e-commerce and the traditional commerce, with e-commerce edging ahead.
If you are a well-informed traditional business, you would know that you are up with a competition in e-commerce. Traditional businesses have to engaged in this new system too in order to keep up with their market. An indication of the positive effects of online marketing is the 40% growth of a retail store implementing online selling, in comparison to the 5.3% increase only in sales by another traditional store. The store then had to overhaul its throng of retail stores to implement the system of online shopping for its customers. Another big traditional company, went up further in its online marketing by giving perks such as free shipment and free returns for its online customers. The strategy paid off for this big store with a 35% increase of their online marketing sales for just three quarters of implementation. To further be on top of the others, this particular company is planning in the coming five years to invest $1 billion for its online ventures. The planned huge investments of giant stores had proven the fast pace of online marketing, and others had to keep up or else suffer losses.
Consumers do not know that the prices of items bought in a traditional store is jacked up to at least three times. Costs of mark up come from the factory to the wholesaler, then to the retailer, and on to the cashier and customer point. By doing online selling, companies can cut at least one mark up in the shorter process.
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There are several positive points in e-commerce that are advantageous over traditional commerce. An advantage is that geographic locations are not a concern. Next is that the market is easy to reach with the use of the internet and search engine presence. There is a lower cost because of less staff in the system. There is not real estate cost in e-commerce compared to the cost of renting a space in traditional marketing. Buying online makes finding of products quicker and easier for consumers, plus they do not need to travel to stores. Through online, consumers can easily browse and purchase products they like. With the endless information that online marketing can offer, different consumers are targeted. With the year round 24/7 online marketing, the shopping hours of consumers are flexible to fit anytime they have the opportunity. New markets are always a possibility in e-commerce.
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The advanced methods of e-commerce has made marketing of products and services more efficient and productive for both consumers and sellers.