5 Reasons Why E-Commerce Will Help Your Business Grow and Give you More Freedom
One of the biggest hurdles for businesses (especially new or growing businesses) is having a positive cash flow. Cash flow is the lifeblood of a company. Most businesses fail to grow because they spend massive amounts of capital on fixed costs such as warehouse and office rent. These costs will stay the same no matter how many sales your company makes and they can end up draining all your resources.
Thankfully, there's a solution! When E-commerce, fulfillment centers and a few other elements meet, magic happens.
Here's 5 reasons why E-commerce is the safest and most effective way to scale your business.
Make Data Driven Decisions: There are several types of software that can show you which items are in demand and where the demand is coming from. This will allow you to buy a set amount of inventory without worrying if you will end up selling it. It is that simple. Do research, gather data, act accordingly, cash in.
Leverage Targeted Advertising: E-commerce paired with PPC advertising (Facebook Ads, Google or Bing Ads) allows you to market your product anywhere you want to any demographic you want. You can now market specific items within targeted cities or even neighborhoods. High demand means higher profits and no need to discount your products to compete.
Automate Fulfillment: There are countless solutions in the market when it comes to fulfilling your orders. You can now pay a company to hold your inventory and mail it to you clients once the orders start coming in. I can't stress how important this step is if you are serious about scaling your business. When adopting this method, you will be able to focus on putting your name out there and increase sales instead of picking, packing and shipping. Most fixed costs are absorbed by the variable ones and they can be amortized in the COGS since the business pays for storage and fulfillment only after the item is sold.
Work Remotely: When you own an e-commerce business you won't need an office. All you will need is a laptop and an internet connection. Go ahead and travel the world, find new products, meet with your suppliers, work with your graphic designers, come up with your next big idea...... You get the point.
Create Subscriptions: Have you ever had those clients that walk in your store every single week (or month) to buy the same items? This already happens from time to time in the brick and mortar world but it is not nearly as common as it is with E-commerce. With E-commerce you can set up preferential pricing for clients that sign up for for a product subscription, This means more sales but it also gives you the ability to re-market your business and your products with further offers and campaigns.
If you have been thinking about selling online but you haven't taken the leap yet, just do it. E-commerce is not a fad. It is here to stay. And if you just turn you head and pretend it doesn't exist, you probably forgot the reason you wanted to be an entrepreneur to begin with.