The rise and continuing growth of online shopping has not just changed the way consumers buy products it has revolutionized the way retailers do business. Every company can sell an unlimited range of products directly on their website, whether they are offering essential baby gear or niche film memorabilia. Distance and borders no longer pose any barrier between you and your customers. No matter what you are trying to sell, you will be able to reach across the globe and find a target market for it somewhere.

The rise of online shopping

Online shopping has become a juggernaut that is simply too big to ignore. Last year, a major milestone was reached, with a survey by analytics firm comScore revealing that American consumers now buy more products online than they do in physical stores. The 2016 survey showed 51 percent of purchases are now made online, a significant increase on the 48 percent of purchases in 2015 and 47 percent in 2014.

Another survey, by Forrester Research, showed that around 190 million Americans shop online each year. That’s more than half of the entire population and the figure continues to grow. According to IBIS World research, online revenues are set to increase by around 8.6 percent annually for at least the next five years.

Why consumers love online shopping

Two main factors lie at the heart of the ongoing success of online shopping: convenience and selection range. 

Everybody has experienced the difficulties of shopping at local stores, from the scramble for a parking space and the wobbly trolleys all the way through to the frustrating scavenger hunt to complete your shopping list, and the long lines at the register. It’s clearly a far more pleasant experience to sit at home in your dressing gown and click a few buttons on your computer or phone, then wait for the products to be delivered.

Perhaps even better is that you are pretty much guaranteed to find exactly what you are looking for when shopping online. You no longer have to trust the prescience of the local store manager to stock the shelves with the item you need, nor do you have to accept the price tag they place on it. It has never been easier to discover what you need and compare prices until you are satisfied you have the best deal.

Why online shopping is such a great business model

Online shopping offers many benefits to retailers, beginning with the fact that you can reach consumers anywhere on the planet. You no longer have to construct your stores in major population centers, then hope consumers will find you, nor do you have to target the broadest possible market to make a profit.

Another major benefit to online shopping is that there are few overhead costs, particularly for small businesses that are just starting out. The rent for a store, the wages for staff and even the electricity bill to keep the lights on all day create a massive drain on the profits of a physical store. Online retailers do not have to worry about any of these and many of the most successful online businesses began with a single person working from their own home.

Adding to the success of the online shopping business model is the ease with which it can now be set up. It doesn’t require any technical skill or online business experience. Even if you do not feel confident doing it yourself, there are many companies and agents that can help you get started.

You also don’t have to choose one realm or the other – at least not yet. There are many well-established businesses still thriving in the real world with their physical stores, but the most successful among them have sensed which way the wind is blowing and have taken steps to provide online shopping services.

Online shopping is the way of the future

We are still very much in the early days of online shopping. The exponential rate of growth in the industry shows no sign of slowing down and we will eventually reach a point where most of America’s shopping is conducted online. There are still vast opportunities to find a space for your business in this ever-expanding market. Meanwhile, international online shopping has even more room for growth. For instance, Internet penetration throughout Africa is currently at less than 30 percent and this is only going to surge forward.

Online shopping has opened a world of products for consumers and an even broader range of business opportunities for retailers.

Tags : Online Shopping