A year into the COVID-19 pandemic, one thing that we have learned is that the internet and new technologies have made it easier for us to stay connected and cope with difficult situations. This year, we have learned to adapt and many have embraced their entrepreneurial side. In fact, many have decided to start a new online business, get in shape, or learn a new skill. All these can change a person’s life and maybe you have left wondering, how did they do it? Well, today we will talk about one of those things that has helped people stay afloat during the pandemic, E-commerce.
In case this is the first time you are hearing about this, here is a little explanation of what it is. E-commerce refers to the type of business that buys and sells things online. So, if you are one of the people who has started their small online shop or has bought things online, you have engaged in E-commerce.
During the pandemic, many individuals have started their own online shops, but there are many other stores and restaurants that adapted their systems to work through E-commerce. For example, small restaurants who decided to start getting orders online or started working with Uber Eats or DoorDash are just an example of growing their business through E-commerce. This helped them to stay open during times when people were not allowed to go out.
Beyond helping small businesses stay open during the pandemic, there are a number of benefits that E-commerce gives to small businesses. Here are five of them:
Managing a store online allows entrepreneurs to save a lot of money on expenses including rent, transportation, and/or personnel. The business owner has the opportunity to manage their business from their home, keeping inventory in a place they already own and focusing on investing in things that they definitely need. For example, investing in their equipment and the required permits and licenses needed to sell online.
2. Reaching more people
Managing an online business, gives you the opportunity to reach people outside the place you live. Basically, people can buy things anywhere as long as they have an internet connection. Of course, occasionally there may be some limitations placed by the delivery process, but being able to sell to people from a completely different state or country is very cool.
3. Very flexible schedule
Contraire to the 9:00 – 5:00 schedule that you could have in a store, conducting your business online allows your customers to shop at any given time. Yes, they may have to wait a little to get their products, but if they want to buy something at 12:00 a.m. they are able to do so.
4. Marketing and advertising is easy and almost free
Social media allows you to market and promote your products and business almost for free. You have the opportunity to create an account on Facebook, Instagram, YouTube, or any other social media platform and use it/them to promote your products. You have the opportunity to create all your posts and advertising materials, saving you the money you would otherwise pay to a marketing agency. Plus, there are multiple tools like Canva, Poster My Wall, and online courses (Udemy, skillshare, Domestika) that allow you to make it easier and to learn some tips and tricks to manage your accounts and create content.
5. Makes growing easier
That is right, starting your business online gives you more control on how and when you would like to grow. There are multiple examples of businesses starting online and then opening their retail stores. An advantage of this is having the opportunity to create a brand for your business and creating a loyal relationship with your customers before opening a brick and mortar store. This way, you will already be established first before making the big investment of opening your store in a physical location.
There are many more benefits of opening an online shop, and there are many platforms that make it easy for you to do this. Some of them are Etsy, Amazon, Shopify, Facebook Marketplace, or Instagram Shopping. They are there for you to use and we believe that you don’t lose anything by trying. As always, if you need guidance or advice, at Access Capital, our experienced advisors are ready to help you and provide you with any business coaching or management you may need. We can also help you register your business or explain to you how taxes work for an online shop. You can always contact us and schedule your first meeting for free!
Access Capital is a financial consulting company with over 20 years of experience in the financial industry of California. It focuses on helping small businesses grow through their services that include financial consulting and advising, small business loan processing, digital marketing, business coaching, and accounting & management. For more information go to accesscapital.org.