Web-Based Purchasing Conversion
Continuing changes in the shopping habits of online consumers has resulted in good news for internet-based retailers. US online shopping sales figures for 2014 were nearly $305 billion, with online sales growth estimates forecasting $414 billion in domestic online purchases by 2018. This is a significant percentage of the worldwide $22 Trillion online market. These growth figures reveal increased consumer confidence in making online purchases due largely to ease of making the transaction, online shopping security as well as competitive pricing and returns policies. 2013 figures released by ShopperTrak show a dramatic impact on retail outlet purchasing, which decreased by more than 14.5 percent.Online Customer Shopping Trends
Online purchase activity is showing increases in the product lines previously associated with in store purchases. Online consumer data released by Invesp shows that with respect to their internet purchasing habits, online consumers are expanding their shopping habits to everyday use items in areas including food, groceries and pet supplies, 20%, household goods, 38%, clothing and apparel, 63% and consumer electronics, 69%.Product Research and Mobile Purchasing
The new generation of online consumers actively seek online product reviews on social media websites including Facebook.com, Twitter.com, blogs, Youtube.com videos, Yelp.com, Wikipedia and seller and product ratings on privately operated websites. The popularity of cell phones as a product research tool has exploded, with Google recently reporting that nearly 50% of the traffic to its search engine originates from mobile devices. Storing online shopping website login id’s and passwords on mobile devices, coupled with easy tap and slide Paypal.com and Amazon.com payments services are making online shopping a highly ubiquitous task.Online Small Business Sales Growth
Tools available to small businesses are increasing their access to online consumers and their abilities increase their revenues from online sales. In a 2013 article, British-based Guardian news site noted that online marketplaces, such as Amazon.com, and auction sites, which include internet auction giant, eBay.com have increased in use and popularity as business selling tools. The online sites’ attractiveness is attributed to their flexibility, low start up costs and an enhanced sense of control over business operations. The largest gains are reported by those small businesses with products in niche markets. However, realizable benefits across the board for businesses are extended to nearly every online product line including vintage and hard to find merchandise, jewelry, clothing, hobby sporting and electronics goods. Internet market estimates, supported by the changing online purchasing habits of consumers makes revenue growth by internet based sales an attractive option to today’s small businesses.Advance Funds Network Assists Small-Medium Businesses
Advance Funds Network (www.advancedfundsnetwork.com), established in 2007, makes it easy for your small-medium sized business to obtain easy and transparent financing, without any upfront fees, ever. We offer several business funding options assisting with the selection process in the one that works best for your business. Our straightforward goal has always been to approve your business financing needs. Contact us to discuss how we can help your business meet its financing needs.Frequently Asked Questions
How have online shopping habits changed in recent years?
In recent years, online shopping habits have shifted significantly, with consumers increasingly favoring e-commerce platforms over traditional brick-and-mortar stores. This change is driven by factors such as convenience, competitive pricing, and enhanced online security. Notably, there has been a substantial increase in online purchases of everyday items, including groceries, household goods, clothing, and electronics. Additionally, the rise of mobile device usage has made online shopping more accessible, allowing consumers to shop from anywhere at any time.
What opportunities do changing online shopping habits present for small businesses?
The shift towards online shopping offers small businesses the chance to expand their reach beyond local markets, accessing a global customer base. By establishing an online presence through e-commerce platforms or their own websites, small businesses can operate with lower overhead costs compared to traditional retail setups. This digital transition enables them to compete with larger retailers by offering niche products, personalized services, and engaging directly with customers through various online channels.
How can small businesses adapt to the rise in online shopping?
To capitalize on the growing trend of online shopping, small businesses should develop a robust digital strategy that includes creating user-friendly websites, utilizing social media for marketing, and offering secure online payment options. Embracing mobile optimization is crucial, as a significant portion of consumers use smartphones for shopping. Additionally, small businesses can benefit from listing their products on established online marketplaces to increase visibility and attract a wider audience.
What challenges might small businesses face with the increase in online shopping?
While the shift to online shopping presents numerous opportunities, small businesses may encounter challenges such as increased competition, the need for technological investments, and managing logistics for shipping and inventory. Staying updated with the latest digital marketing trends and ensuring cybersecurity measures are in place to protect customer data are also critical concerns. Overcoming these challenges requires strategic planning, continuous learning, and possibly partnering with technology providers to streamline operations.
