Ecommerce is growing. Ten years ago, many people would have thought it absurd to browse products on a mobile phone, much less complete a transaction from start to finish. And yet, mobile commerce is claiming a significant chunk of online sales. People can now click to order almost anything they want to their doorstep—from groceries to clothing, furniture, makeup and more. The more convenient ecommerce becomes, the more shoppers turn to online buying. In other words, it’s a good time to get into the game.
Here are six reasons entrepreneurs launch ecommerce businesses.
There’s a Gap in the Market
Half the challenge of starting a successful ecommerce company is finding a niche. If your store can offer something unique within a larger segment, you’ll pique customers’ interest. For example, let’s say you want to open an apparel store. It’s safe to assume there are hundreds, if not thousands, of competitors under the same umbrella. Assuming they’re all trying to offer the staples like good customer service, flexible returns and appealing order fulfillment, how can you distinguish your store?
Your product lineup should cater to a specific target audience. Create a profile of your ideal consumer. Then make all your merchandising and marketing decisions based on attracting and serving this person. You might decide to sell animated t-shirts for gamers. The target buyer for your cruelty-free, natural-dyed t-shirt line will be a conscious consumer who values environmentally friendly products. If you identify a gap in the market, fill the niche.
Entrepreneurs Want a Flexible Income
Selling products online allows entrepreneurs to take in revenue without investing in a costly physical space with tons of fixed operational costs. In this way, it’s a more flexible retail arrangement—plus your store can stay open 24/7, generating income even while you’re asleep. Sellers may choose to utilize drop-shipping, meaning they can avoid storing a large inventory while waiting for it to sell.
At the end of the day, ecommerce is a self-directed career. It can take as much or little of your time as you choose. Many leaders would rather steer their own ship than work for someone else’s company, which is why the flexibility of ecommerce appeals to them.
Online Sales Are Always Growing
By 2022, ecommerce is projected to make up 17 percent of all retail sales. The number of people making online purchases, particularly on mobile devices, is consistently rising. Seeing these statistics may compel an ecommerce entrepreneur to seek their piece of the pie. With the right idea and a good cloud-based ecommerce platform behind them, it’s easier than ever for sellers to hold their own within the online sales space.
They’re Passionate About an Industry
Passion drives many sellers to enter a specific market. For this reason, a former athlete may want to sell sports gear or apparel. An avid traveler and hiker may launch their own line of rock-climbing gear, camping supplies or rugged luggage. It makes sense for someone interested in technology to launch an electronics store. Passion is a positive quality because it drives entrepreneurs to keep up on the latest industry developments.
They Create or Invent a Product
Entrepreneurs may even go so far as to invent their own product or service, especially if it’s currently missing from the market altogether. Forbes provides the example of one entrepreneur who launched her own organic skincare line after struggling to find anything that would help her eczema. As the popular saying goes, “If you want something done right, do it yourself.”
They Want to Hire and Lead a Team
One of the perks of building an ecommerce company is the privilege of hiring your own team of marketers, developers, social media managers, graphic designers and customer service specialists. These advantages represent just six of the many reasons entrepreneurs launch ecommerce businesses today.