eCommerce Business – Electronic shopping was invented back in the 1900s by Michael Aldrich, and has come a long way since then. The booming business is widely reliant on technology and wireless services. As the world becomes more technically advanced, businesses are able to extract more advantages from the online market. Today, people prefer purchasing online over visiting physical stores, as it saves a lot of time and energy. The customer friendly online payment options are another cherry on top that further motivates the online shopping ritual.
Different Levels Of E-Commerce Market
Whether you’re a buyer or a seller, understanding the different market sizes will help you make better decisions. From startups to global enterprises, the online market is well stocked with e commerce stores selling clothing, cleaning products, as well as home appliances in UAE.
Have a look at the different sectors working in the online marketplace today.
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Start-Ups
Start-ups are infant business models that are usually initiated with the goal of achieving substantial growth. It reflects the innovative idea of an entrepreneur who is trying to make something out of the little they have.
While a start-up can be defined as a company with less than 100 employees, experts tend to have a different perspective. They believe that a company, albeit running in its initial stages, if creates a revenue above ＄50 million dollars is not considered a start-up.
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Small Scale Stores/ Businesses
Small businesses are run by fewer employees, and do not generate as much revenue as a large scale company. However, they are full fledged corporate systems with structured operations and consistent profit.
The US Small Business Administration says that if a company has over 100 to 1500 employees, it can be considered a small business. When built online as a seller, it becomes a small online store.
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Medium Sized Enterprise
Medium sizes enterprises are often mentioned next to small businesses, as they follow similar operational mechanisms, but vary only in the amount of revenue. They are also called mid-market businesses, and have a maximum of 500 employees. The revenue can be between ＄10 million to ＄1 billion based on the type of products and the popularity of the store.
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Giant Enterprises
These are the big fishes that contribute 45% to the e commerce software purchasing. The enterprise level companies are defined based on the employee number, which should be over 1000. On the other hand, the estimated annual revenue for them remains over ＄1 billion.
5 Main Reasons For The Rapid Growth Of E Commerce
E commerce isn’t merely beneficial for the customers, but has changed the whole dynamics on which modern-day trade works. There are numerous reasons for the consistent rise in the popularity of online shopping and e commerce stores.
Read ahead to find out which factors are driving the exponential growth of online businesses in the modern era.
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Personalized Services
This might sound sneaky, but every action we do online is being tracked. The information is utilized by online sellers to deliver personalized ads and services to every customer. We bet it has happened to you at least once that you were talking about a particular product one moment, and the next, you received an ad related to it.
E commerce businesses use finer targeting technique to identify groups that are more likely to be interested in their products. With the help of tailored ads, businesses save their resources and investment. We term it as ‘quality targeting’, which hand picks potential customers for you. This way, there is better turn over, and consequential growth.
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Easier Accessibility
Everyone has a phone, iPad, or laptop in the current era. This makes all the online products and services easily accessible for every consumer. Even businesses can leverage this to reach out to a wider audience.
Having a phone in hand ultimately delivers access to everything that’s available on the internet. In fact, sharing has become so efficient and swift that businesses are gaining major profits from it.
Imagine your friend sends you a message on Facebook, Instagram, or other social media networks, which links back to the product you’ve been looking for. You will probably consider buying that product at least once.
In fact, many apps have introduced features like in-app checkouts, “Buy Now” prompts, shop-friendly links, and much more to further assist e commerce sales.
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Easier Buying With Unlimited Options
E commerce offers a one-stop platform to customers for buying anything, at any hour. This means that buyers are not limited by the standard timings of a physical store. The shopping is fast, and the payment options are wide. Moreover, with upgraded shipping policies, receiving your orders delivered within a few hours is now possible.
Plus, the number of products in an e commerce stores is not limited by category or brand. The expansive online presence of these shops spoils customers for choices. Buyers are no longer confined by multiple physical stores in a specific geographical space. They can even order internationally, from any brand and any category.
Online shopping allows better comparative analysis between products, when everything is visualized right there. This makes customers feel more secure while shopping online. So, whether you’re selling cleaning tools in UAE, or working to expand your appliance sales, online selling strategies are the way to go.
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Wider Customer Reach
Internet is accessible all around the globe. This means that when you sell online, you have so many more opportunities to reach customers. Connecting with global audiences and potential buyers is now possible, all thanks to the open web that lets anyone view and access your website.
Supply your marketing strategy further with social media ads, influencer marketing, email marketing, and SEO, and you have got yourself the perfect recipe for improved customer reach.
For example, if you sell painting tools in UAE, connecting with social media influencers that work on building and construction niches may be significantly helpful. Using your global presence in the right manner can help link to a wider target market with people of buying mindset.
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Reduced Operational Costs
Shifting your business online helps cut down a lot of costs associated with starting a physical store. With an e commerce business, you no longer have to hire staff, pay electric bills, or get cleaning help. This automatically reduces operational costs, allowing you to focus your investment more in marketing and SEO.
As growth follows, brands can expand their operations without having to invest in property or additional workforce. The overall mechanism of e commerce runs on space and money saving strategies that enable better profit margin.
Is It Worth Switching To E Commerce In UAE?
No matter the size or revenue of your business, an online presence is now mandatory for every seller. If you want to reach a wider audience, improve your sales without major investment, and cut down operating costs, there should be no questioning the e commerce business. Take the example of UAE’s biggest e commerce store to drive your own business strategy. Expand your small, larger or medium enterprise with the help of online medium that is accessible in every corner of the world.
