E-commerce has modified the way business is done across the globe. Today, most of the companies working on the brick and mortar model are turning towards having a digital presence to increase their productivity and expand their business. The online shopping experience has been drawing consumers’ attention and sustaining in this competitive market. Many existing brands have started selling products online by listing them on different popular marketplaces like Amazon or eBay. Also, many entrepreneurs are moving toward having their own online stores or websites as they have started realising the advantages of e-commerce to business. Conventional offline stores have switched to e-commerce to increase their sales and business profits in every possible way. Adopting e-commerce is the simplest way to increase your productivity.
Growth of E-commerce in Africa
Africa, the world’s second-largest and the second most populous continent, has been witnessing a significant rise in internet penetration and an increase in the use of smartphones in recent years. The advancement in technology and the convenience that e-commerce platforms offer have changed the behaviour of consumers. African online retail has been showing sturdy growth for the past few years. According to Statista, in the last five years, online transactions in Africa increased by 240.44 per cent.
The trend continues due to the last two years of the pandemic, which caused a surge in online purchase across the globe. The 2021 Global Payments Report issued by Worldpay from FIS has revealed how the online shopping trends of 41 countries, including Africa, has accelerated under the pandemic. The revenue of the e-commerce market in Africa is estimated to grow exponentially in the coming years. Africa has a vast digital audience and hence is a promising and potential region for the growth of e-commerce business.
If you have an existing business then, how adopting an e-commerce channel shall help?
Do you run a retail or wholesale business that’s doing well, and you’re wondering how to expand sales? If you’re in any kind of retail, there’s never a better time to adopt an online business to get the maximum benefits of eCommerce. If you have an existing business, as long as you choose your channels wisely and have an appropriate business plan, there is plenty of potential for high income and high ROI by adopting an e-commerce business model. Here are some benefits of adopting e-commerce business models for your existing business.
LOWERING COSTS
The operating cost is comparatively low in e-commerce compared to a traditional brick and mortar business. Adding a digital feature to your business is never a high-risk investment and, in fact, a better choice as it enables you to save on rent, advertisements, staff and land.
INCREASE CONVERSION RATE
Online stores and their visibility help you sell online in multiple locations without any geographical barrier. Hence you target more audience at the same time. If you have a website with good features, you could possibly compete with the big brands and have more profits. The right use of analytical tools and the right marketing strategies can drive more conversions for your online business.
INCREASE IN SALES GROWTH
Every business’s dream is to increase its sales. By adopting e-commerce, you can float your business in a different sea of sales and reach new islands of success. The sales of your products automatically increase once your website’s conversion rate is rising.
EARNING A BRAND NAME
Brand value and awareness play an important role and take a lot of effort. If marketing activities are put together in the right direction, it helps to target more audience and increases the brand value. With more online visibility and an online reputation, you can reach a diversified audience range.
PLEASANT CUSTOMER EXPERIENCE
E-commerce offers a smoother and comfortable experience for the customer. One could easily order from their place anytime and get it delivered to the doorstep. The ease of searching, browsing and ordering helps to attract or retain customers. Special features such as chat options to answer customer-related queries 24*7 also add to a pleasant experience.
a. B2C businesses (business to consumer):
The term business-to-consumer (B2C) means selling products and services directly to the end customers. Most organisations that sell their products directly to consumers can be referred to as B2C companies. In this digital era, electronic e-commerce has redefined how consumers purchase and use products. Customers prefer buying directly from the manufacturer’s website. Hence a business needs to have a top-notch website.
A business with a dedicated e-commerce website can increase profits by creating awareness for the brand and providing important product details on its website. To say it all, a B2C or business to consumer approach holds a significant number of business opportunities. There are numerous benefits that make a business to consumer eCommerce inevitable for manufacturers.
BENEFITS OF E-COMMERCE FOR B2C BUSINESS
There are many benefits of e-commerce for B2C, below are just some examples:
No need for a physical presence
With B2C e-commerce, there is no need to have a brick-and-mortar store since e-commerce reaches out to more audiences when compared to the offline mode.
Gathering data
You can track your online success, acquire data from customers and visitors, and improve your business model accordingly.
Increased business opportunities
With business to consumer B2C eCommerce, your company can tap into more business opportunities because you aren’t bound to location or time.
Personalised marketing
Through a B2C e-commerce business, your business can attract more customers with the help of personalised marketing strategies. Using personalisation marketing efforts in your e-commerce business can help in improving the marketing ROI by up to 5 to 8 times.
b. B2B businesses:
When we talk about the e-commerce model, there may be no or little differences between B2C and B2B e-commerce, however; there are a few to look upon! While B2C customers often tend to make smaller orders and quicker buying decisions, B2B clients spend weeks and months researching vendors with the lowest cost and focus upon a long-lasting relationship. Professional B2B clients have several additional needs that business has to meet in order to provide a valuable experience, such as pricing depending upon the bulk of the order.
BENEFITS OF E-COMMERCE TO B2B BUSINESS
E-commerce offers several potential advantages for any B2B company willing to take their sales online, including more business opportunities, lower costs, and improved sales. The main benefits of B2B e-commerce are:
Tap more business opportunities
You reach out to more clients and hence can quickly grow your business with more opportunities.
Improve B2B e-commerce sales
With more customers, the sales eventually get improved in the B2B business.
Lower your costs
You need not spend less money on optimisation of the operations with a B2B e-commerce website.
Get customer feedback
B2B business is not a one-time buy and sell; rather, clients often stick around for a longer time with you. Hence, to make sure you retain them, their feedback is important.
Reach new markets
You reach out to new markets and new clients since geographical factors are not a constraint in the e-commerce business.
How can YRC help start your eCommerce journey?
Wondering how to start an eCommerce business? At YRC, we have experience dealing with various online startups and big brands as well across the globe, including Africa. We have helped them get a reputed place in the e-commerce market with our expertise in SOPs marketing, logistics, inventory management, market research and analysis.
We have a team of consultants that can help you set up an online store for your business. We will assist you at every step by creating a full-proof business plan for eCommerce and formulating the right business strategies along with implying them to ensure your success. If you want to scale your existing business, it’s important to adopt an e-commerce model. So, contact Your Retail Coach if you want to establish an online eCommerce business in South Africa.