Is E-Commerce the Death of Retail?

What is E-commerce?

Simply stated, E-commerce is the transfer of money through an electronic network, namely the internet. E-commerce can include buying and selling goods, like Amazon.com, or the transfer of money, like Venmo and Pay-pal. E-commerce has slowly become a staple in the economy, accounting for over one third of total US retail sales in 2015. Many larger companies are making the switch to support e-commerce to compete with online retailers; however, many smaller businesses are still hesitant to adopt the internet for their business.

What Are the Pros of E-Commerce?

The short and straightforward answer; it has the potential to bring you more business. A staggering number of consumers conduct online research before they purchase, including product reviews, consumer ratings and product comparisons. This is an important step in selecting the right tools for your business. Partaking in e-commerce will allow you to beat your competitors to the punch as potential customers are already looking online, and statistically, younger consumers are more likely to purchase online. Word of mouth is the best form of advertising and partaking in e-commerce allows your younger customers to share your site on social media. Not only will you bring in the next generation of customers, you’ll also capture customers who may not be able to visit your store in person. By offering online purchasing and shipping as a service, you can expand your business’ geographical reach.

OK, But What Are the Cons?

While e-commerce continues to grow in popularity, it’s not without its critics. The biggest concern most businesses have is that they will lose the personal connection they have with their customers. Some shoppers may prefer an in-person shopping experience. Another concern many businesses have is the risk of identity fraud. Putting private and secure information on a new website might drive some away, especially if the customer is unfamiliar with technology. We’ve all heard stories of large tech companies having their database breached, exposing sensitive customer records.

While these concerns are not unfounded, there are ways to mitigate risk to both your business and your customers. 

Is E-Commerce Right for Your Business?

Should you add E-Commerce to your business website? That depends on what your business model and how you primarily interact with customers, but in general, we believe that E-Commerce can complement almost any business. Although we do not believe that E-Commerce will be the death of retail, we do think that modern businesses need to learn to embrace and adopt this new technology in order to remain competitive. Our team can help build a system that is secure, easy-to-use and adds value to your business. Call us today to get started!