The age of e-commerce has arrived. E-commerce is now an industry in the United States worth more than $200 billion. The traditional window shopping at the malls is becoming less done by shoppers since E-commerce came into the picture, and this gives statistics to show a 15% increase of the growth of e-commerce. There is now a war between e-commerce and the traditional commerce, with e-commerce emerging as the winner.
Online shopping has rattled traditional businesses because of its gaining popularity. For traditional businesses to be abreast of the time, they too have to adopt this new system. One proof of the effect of online marketing is the 40% growth of a certain retail store who uses this system, compared to another traditional store with just a 5.3% increase in sales. Not to be left behind, the store has to recreate its various outlets to speed up the implementation of the process of purchase to shipping for online customers. Another big traditional company, went up further in its online marketing by giving perks such as free shipment and free returns for its online customers. Because of this strategy, this giant store showed an increase of 35% on sales in less than a year. The company, after seeing the results, plans in the next five years to increase creativity of its online marketing by investing $1 billion for the system. The planned huge investments of giant stores had proven the fast pace of online marketing, and others had to keep up or else suffer losses.
In traditional purchases, consumers do not know that the prices of the items bought were raised up to three times. Costs of mark up come from the factory to the wholesaler, then to the retailer, and on to the cashier and customer point. Companies that are implementing online selling are removing at least one mark up in favour of the customers.
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E-commerce has its numerous advantages against traditional commerce. One is that the distance is not a hindrance in serving customers. With the use of the internet, sellers can easily contact clients through the internet and by being visible through search engine. The system allows lesser manpower that in turn will give lower costs. There is not real estate cost in e-commerce compared to the cost of renting a space in traditional marketing. Buying online makes finding of products quicker and easier for consumers, plus they do not need to travel to stores. Comparing products online makes shopping convenient. With the endless information that online marketing can offer, different consumers are targeted. With the year round 24/7 online marketing, the shopping hours of consumers are flexible to fit anytime they have the opportunity. You have the opportunities of creating new products with e-commerce.
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E-commerce is the it movement in marketing to make consumers have easy access to your products and services.