5 Ways E-Commerce is Impacting Start-Ups
In light of COVID-19, almost all aspects of our daily lives were affected both in negative and good ways. Student online classes were conducted from kitchen counters, movie nights were replaced by streaming, and Zoom calls replaced conference room gatherings. The list could go on from mundane to valuable activities. The pandemic indeed changed the landscape of our lives.
Retail and trading have felt the upheaval and displacement due to quarantine restrictions. The shift from brick-and-mortar operations to online e-commerce platforms has left us scrambling to adapt and find ways to connect, serve, and assist customers. E-commerce start-ups and businesses are fast gaining traction and have changed the way they do transactions immensely, both in B2B and B2C setups. In this article, we will cover the ways e-commerce affected start-ups positively.
Wider audience reach with less capital
With the boom of online digital platforms, the need for brick-and-mortar shops in posh locations has diminished. In traditional retail, to dominate and reach the market, the requirement is to build shops on the high streets. Gone are the days of costly capital construction expenses and expensive rental charges. With e-commerce, production is possible in some remote provincial locations, advertise profusely through social media, and make your content, products, and services available globally. What a feat! While the cost of building a good and functional website may be substantial, however, it does not measure up to the expensive high street storefronts with exorbitant overhead costs. In addition, with a full-on website launch, you will reach your target niche better with an extensive client base.
Diversion of capital to quality products and services
Established enterprises find it harder to retain clients in the new normal. The start-up e-commerce model has disrupted its market share immensely. Start-up businesses are now flexible competitors with more capital allocation to produce quality products and services. In addition, more money is funneled into the research and development of new capabilities and technologies. Traditional companies are now adopting the e-commerce model by diverting funds to better the system and move away from physical infrastructure and overhead costs of physical shops.
Diversion of capital to logistics and better software
Start-up e-commerce companies have diverted funding to better transportation costs for both B2B and B2C operations. They have also acquired software upgrades to achieve seamless navigation and functional UX, both pillars of increased conversion rates and reduced customer abandonment.
Take on creative and innovative marketing campaigns and tactics
In the new normal, traditional marketing is replaced with cost-efficient digital campaigns such as visual advertisements, targeted ads, better search engine optimization (SEO), and social media and its features. Now marketing campaigns are focused on visual and engaging content and influencer seeding.
Practical ways to generate profit and loss
With e-commerce, the surge in online apps and e-business tools paved the way for business analytics to be intuitive and convenient. Several accounting systems and software are available to generate salient business metrics for the achievement of financial goals. A free profit tracking app ensures expenditure tracking, monitors spending habits, and adherence to budget allocation. All are vital elements of a positive profit and loss and financially sound business performance.
The impact of e-commerce on start-ups is very dynamic and ever-changing. The post-pandemic world is something to look forward to, which could be intriguing, and exciting. The changes are expected to grow ten-fold and rapidly as technologies, the internet, and software penetration in emerging industries and markets improve.
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