10 Reasons Why Your Business Needs an eCommerce Platform

At present, the majority of businesses and store owners opt for an e-commerce platform to manage and operate their online business. So, what is an e-commerce platform, and why is it so important for an e-commerce website?

What is an eCommerce Platform?

An eCommerce platform refers to a software application designed to streamline the process of buying and selling goods online. In today's context, these platforms serve as comprehensive systems that handle various aspects of operations and customer interactions. This includes functions like analytics, customer assistance, inventory management, financial accounting, and more.

Leading eCommerce platforms such as Magento, Shopify, and BigCommerce provide extensive customization possibilities alongside excellent SEO capabilities. Factors like website loading speed, mobile compatibility, seamless integration across multiple channels, and robust marketing tools should also be taken into account when selecting the ideal website builder.

Top Benefits of eCommerce for Your Business

Today, online shopping can take place right on social media platforms. But for this list, we focus on the top reasons why your business needs an eCommerce website or app.

1. Always Open for Business

Customers can exhibit unpredictable shopping behavior, often experiencing spontaneous urges to make purchases, especially in the comfort of their own homes. By utilizing an eCommerce platform, you can capitalize on these impromptu shopping tendencies, as your online store remains accessible around the clock.

Online stores in the eCommerce realm are operational 24/7, catering to individuals with hectic schedules and those whose daily routines may span unconventional hours. This accessibility appeals to a wide range of consumers.

2. Lower Startup Cost

Establishing a brick-and-mortar retail outlet typically demands a substantial initial investment encompassing expenses like rent, refurbishments, inventory procurement, office equipment, and employee wages. Factor in marketing outlays, legal charges, and business permits, and the average commencement cost for a store hovers around $100,000.

Conversely, launching an eCommerce store can be as economical as $100. This amount covers the subscription fee for an eCommerce platform and a basic website theme. Naturally, for enhanced outcomes, enlisting the services of web developers and designers is recommended.

Tailored, adaptable websites may range from $1,000 to $25,000, contingent on the number of pages and the specific functionalities you seek.

3. Cost-Effective

Maintaining eCommerce shops is also more cost-effective when compared to brick-and-mortar establishments. A typical eCommerce store featuring 100 to 1000 products necessitates an annual expenditure of approximately $15,000 to $30,000 for upgrades and regular upkeep.

Conversely, the operational expenses for physical stores average around $10,000 per month. The funds saved from reducing operational costs can be allocated towards expanding your product range and enhancing the overall user experience.

4. Global Reach

The internet fosters global connectivity where online stores can effectively reach and sell to a worldwide audience. Even if your business is newly established, your brand and offerings can gain recognition among customers worldwide.

Additionally, you can tap into new demographics that find significant value in your products and services. This presents numerous prospects for business growth, expansion, and the potential to establish a prominent presence in the market.

5. Enhanced Brand Awareness and Trust

From 2020, social commerce gained significant popularity with the launch of Facebook Shops, providing a boost to small businesses. While social commerce has its advantages, having an official eCommerce website or app is crucial.

A dedicated app or website enhances brand recognition and instills trust. You have the flexibility to tailor the appearance and user experience of your eCommerce platform, making your business more identifiable. Furthermore, a well-crafted eCommerce platform instills confidence in users when providing personal information and completing payment details.

6. Customer Data Insights

One of the most notable benefits of eCommerce is its capacity to effortlessly collect data. With every interaction taking place in the digital realm, you have the chance to acquire valuable customer insights.

Whether during the checkout process or when customers return to provide product reviews, you can seamlessly solicit feedback and other relevant information. This aids in the development of your buyer persona and guides adjustments to improve your platform.

Furthermore, there are tools at your disposal to identify any pain points that may hinder the buyer's experience. By embracing a data-driven approach to business, you gain the ability to make more informed decisions, ultimately enhancing your service to customers.

7. Personalized Shopping Experience

Tailoring shopping experiences to individual preferences is instrumental in converting first-time visitors and ensuring customer satisfaction. This can be achieved by incorporating customer insights into your web design and updates.

Exclusive to eCommerce platforms, you have the ability to customize the initial greeting for customers upon entry. To enhance this, you can go a step further by showcasing personalized product recommendations based on their previous transactions and online behavior.

8. Instant Customer Support

While having top-notch products is important, lacking in customer service can deter repeat business. eCommerce platforms equipped with chatbots offer continuous customer support, ensuring users receive prompt answers to their inquiries.

Advanced AI can assist visitors in navigating your website and completing orders, emulating the experience of interacting with an in-store sales representative. This ensures that the sales process runs seamlessly without the need for constant oversight.

9. Scalability

Expanding a business is an exciting prospect for any owner. However, without the right infrastructure in place, scaling up can result in higher expenses than returns.

For brick-and-mortar stores, expansion entails the need for more floor space, new fixtures, additional staff, and the associated costs. In contrast, for eCommerce websites and apps, it's primarily about increasing inventory and handling higher traffic volumes.

While some digital adjustments and additional storage space may be necessary, the expenses are far less compared to opening a new physical location.

10. Meet Modern Day Demands

In conclusion, eCommerce platforms cater to customers in their preferred environment. In a society that highly values convenience and thrives on digital experiences, having an online presence is imperative.

The imperative to embrace eCommerce technology has never been more evident. Even if your brick-and-mortar business is thriving, it's crucial to seize the opportunity to adapt to the future and enjoy the benefits that come with it.