Is it the Right Time to Launch an E commerce Store?
- August 14, 2020
- Written by : REIL Capital
There’s a hype around e-commerce since coronavirus has forced everyone to stay inside the homes. People are arguing over the potential of retail stores going online and reaching customers on their smartphones and laptops. But is it actually the right time to jump on the bandwagon? Launching an eCommerce store is a major investment for any small business and a wrong decision can leave cash flow gaps. On the other hand, you may see unprecedented growth after launching an eCommerce store for your business.
But how do you know if it’s the right time? Fortunately, determining the right timing to invest in your eCommerce business can be easy if you understand your business. In this piece, we will help small business owners understand whether it is the right time to launch an eCommerce store or not.
Check the Respective Ecommerce Industry Size
What can be a better indicator than understanding the real size of the eCommerce industry? Traditionally, before opening a business, market research is imperative to succeed. Similarly, when going digital with your business, market research of digital buyers is important. According to Statista, digital buyers are expected to go past 2.14 billion by 2021. That’s more than 25% of the world population. The number of eCommerce shoppers varies by region.
Whatever industry you are going for, make sure to check its eCommerce industry size. As far as the global eCommerce industry is concerned, it was worth over $25 trillion in 2019. There are some countries such as China, the United States, Germany, the United Kingdom, France, Canada, that lead eCommerce spending. But that does not make other countries less relevant for an eCommerce store.
Monitor Customer Demand
When operating an enterprise with a sizeable customer base, there comes a point when customer satisfaction becomes impossible in-store. If you are working with an overcrowded retail store on peak seasons or when you are unable to meet customer demands due to frequent out-of-stock products, it is time to think about an eCommerce store.
See If Products Can Target Global Audience
Products or services that can serve a global audience can upgrade to an eCommerce store anytime they want. While it’s not necessarily true, but having a non-location based business is the best indicator to get your business on an eCommerce platform. Not being restricted by location is also a core benefit of launching an eCommerce store.
Weight Sales Automation Benefits
Laying off workers in your retail store may take you far away from automating business processes to meet specific customer demands. However, with an eCommerce store, you can automate several processes including inventory management, invoicing, delivery tracking, live customer support, and more.
In simple words, the eCommerce store also promotes automation growth for businesses. So whenever you feel like automating your business, developing an eCommerce store is the best way to do it. It will cost less while being quick.
These points can be a great help for determining whether to or not to launch an eCommerce store right now. Sometimes, launching a business online can get difficult without additional capital. Get in touch with REIL Capital for instant approval on your loan.