The internet is the new business frontier that has allowed anyone with an idea or a product to set up their own company and generate an income. Brands and entrepreneurs have a substantial platform to create revenue and expand their products to a global customer base. Here on Budget and the Bees we have presented 4 inspiring stories that demonstrate how individuals have made their mark on the internet through online stores. For example Susan and Gregg Koger created their own ecommerce store after using eBay didn’t work. Their site Madcloth is targeted at the right audience and was soon gaining 70,000 shoppers on a daily basis. As more consumers use the internet to purchase traditional store based products and services unique to the web, the potential for wealth is huge.
Online shopping has revolutionized the way the majority of people shop. James Hendrickson writing for Budget and the Bees states that a successful eCommerce vendor can tailor their online store to fit the target audience. A huge advantage is that the internet provides many cheap outlets to advertise and create brand awareness, whether it is through social media or targeted marketing. The majority of ecommerce outlets will also have a blog section that can generate traffic through SEOs.
Most startup ecommerce platforms come with multiple designs and templates that can be tailored to each target market. Ecommerce Guide point out in their review of Shopify that the site offers over a hundred sophisticated designs for users to choose from. For instance most luxury websites follow a similar design interface that is minimalistic and neat. The interface is designed to mirror the storefronts of luxury brands.
The potential for generating revenue is huge as it can be done with minimal manpower compared to more traditional outlets. Yet a different set of marketing and selling skills are required to make an ecommerce platform profitable. Former investment banker Andrew Youderian believes that sellers need to stay up-to-date on the technical issues that go with ecommerce selling. If a site owner wants to expands their store in order to scale up their revenue they need to be aware of monetizing their site through SEOs and paid traffic. He states that “staying up to date on the technical side is an issue” and believes that small merchants need to keep an eye on what the giant retailers, like Amazon, are doing. The sheer number of ecommerce stores on the internet make it a challenge for start-ups and small merchants to find a voice and create a customer base. In order to find a foothold amongst the thousands of other ecommerce stores, sellers need targeted market research and an understanding on how to develop their store.
The internet has radically changed consumer habits and made shopping much more accessible. Consumers can purchase goods and services from across the globe at the touch of a button. The luxury market is one of the most lucrative on the internet with the Business Insider reporting that the top 10% of U.S. house earners “account for approximately half of all consumer expenditures”. The site noted that discretionary spending among the wealthy (those earning $120,000 a year or more) was expected to increase by 6.6% in 2016 to a total of $406 billion. Spending on fashion, one of the most popular types of ecommerce platforms, was expected to grow to $37.4billion (approx. 9% of discretionary spending) in the U.S.
The internet is the perfect outlet to generate wealth if the merchant can use their ecommerce store to successfully target the right audience and create brand awareness. In order to be successful merchants must aware of how to use the internet to maximize the potential of their brand.