It's clear there's a
recession going on. Costs of living are climbing, along with unemployment and
bankruptcies.
But here's some good news...
E-commerce is thriving in spite of these negative conditions according to Forrester Research. And throughout the remainder of this year and beyond it's predicted to continue growing rapidly.
In fact, Online Retail owners report increased sales over this same period last year.
Internet retailer Andreas Georgio, of
AndreasInc.com, says, "[The recession] isn't affecting me at all.
Actually, my business has doubled almost every year since I started."
Shawna Fennell, founder of
1Choice4YourStore.com is equally optimistic. "I'm going into our Yahoo
stores, and I'm thinking 'Where's the recession?'" she says.
"You don't see it unless you go into the
local mall and there's nobody there."
Look for e-commerce to experience over $130 billion of growth in the next
four years says Forrester Research.
Their February 2008 report, The Outlook for U.S. eCommerce in 2008 and
Beyond, projects that eCommerce sales will jump from $204 billion
this year to nearly $335 billion in 2012.
Growth
Factors
Offline
retail sales growth has slowed to a near standstill. So why is eCommerce flourishing?
Forrester cites several reasons consumers are
doing more and more of their shopping online:
- For
convenience
- To
research products online
- To
purchase anything, any time
The research also shows that frequent online shoppers are unlikely to
slow their spending any time soon.
Generally speaking, online
shoppers have higher income levels than average consumers and
are more insulated from the effects of the recession. They also tend to be more
optimistic about their financial futures.
Overcoming
Online Challenges
This is GREAT news for your e-business!
But even in a
recession-proof market, you still have to provide the kind of buying experience
your visitors are after... or they won't be back.
Forrester Research suggests some key issues you need to tackle if
you want to convert your visitors and get repeat business.
- Shipping
charges
The most common issue scaring customers away is higher-than-expected shipping charges.
While you can't eliminate shipping costs, you can help yourself by NOT padding your shipping charges. Avoid lowering your product price by falsely inflating your shipping costs. Potential customers will likely abandon their shopping cart, never to return.
- Back
orders
The second-biggest cause of online shoppers' dissatisfaction is back-ordered products. That's why you must constantly monitor your inventory levels and your suppliers' product levels -- particularly on your popular sellers.
Some wholesalers allow you to watch stock levels on their websites. For others, you'll need to call periodically to check their product status.
Keeping a close eye on your wholesaler's inventory becomes even more critical if you're a drop shipper. After all, you're not the only seller dipping into their supply. So when you see they're nearly out of an item, protect yourself and remove the listing from your website until they restock.
It's also smart to order a few of your best-selling items and keep them on hand. Then, if your supplier runs short before you can pull the item listing. you won't find yourself in a back-order situation.
If you can overcome these basic operational hurdles, you're putting your
eCommerce business in a position to profit.
The Outlook for eCommerce
Your online business may very well be your best
bet for beating the bad economy.
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