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E-Commerce Domination: Now Is The Time To Capitalize

E-Commerce Domination: Now Is The Time To Capitalize

  • Frank Kunc

Since its inception, the internet has in some way transformed nearly every aspect ofecommerce human society. Nowhere is that more true than in the field of retail. According to a 2018 poll, 76% of American adults do at least some of their shopping online, and 43% make at least one purchase every month. It is no surprise that e-commerce is rapidly overtaking traditional retail methods. New innovations in technology and logistics have created a phenomenon in which e-commerce sites are growing increasingly profitable while brick and mortar storefronts are continuously shutting their doors. This trend shows no sign of stopping, and every year, a growing number of aspiring entrepreneurs are taking their chances and often succeeding in the lucrative world of e-commerce. 


Why Now Is The Time

To put it simply, there has never been a better time to enter the exciting world of e-commerce than right now. Since 2003, e-commerce in the United States has sustained an annual growth of over 17%, and as of 2019, still increasing. During that same time, the financial and technological barrier for entry into these businesses has eroded considerably. New methods of retail fulfillment have made it possible for a shrewd entrepreneur with a viable business model, and not much else, can emerge with a successful e-commerce business. New logistical innovations, like dropshipping, have made it significantly cheaper and easier to start a web-based business. Dropshipping differs from traditional retail in that the retailer does not physically keep the inventory they sell. Instead, they are shipped directly from a warehouse to the consumer, while the retailer’s profits come from mark-up. This allows retailers more flexibility with regard to what they sell, as well as limits the upfront costs involved with maintaining a full inventory. In recent years, businesses like Dropship Movement have connected retailers with wholesalers, making it possible for them to enter the e-commerce business with minimal start-up and low risk of revenue loss. With the entry barrier at an all-time low, and volume at an all-time high, there has never been a better time than now to find success in the world of e-commerce.  

 

Future

Future projections show that e-commerce is on a meteoric rise, one that shows no sign of stopping any time soon. According to market research provider Euro monitor International, e-commerce is projected to become the world’s largest medium for retail by 2021, surpassing traditional brick and mortar establishments like supermarkets and chain stores. Some markets have adapted to e-commerce quicker than others. In recent years, South Korea and China have been at the forefront of the e-commerce, demonstrating how technological innovation can create a more streamlined and effective means of online retail. North America and Western Europe, meanwhile, are not far behind; as E-commerce is projected to become the two markets’ dominant retail method by as early as 2020. Globally, e-commerce is still an ascendent industry, but it must peak at some time. It is thus advantageous to enter the market now, before its popularity and accessibility leaves the market saturated and unprofitable.

 

Sources:

http://maristpoll.marist.edu/wp-content/misc/usapolls/us180423_NPR/NPR_Marist%20Poll_Tables%20of%20Questions_May%202018.pdf#page=2

https://ihsmarkit.com/research-analysis/the-growth-of-ecommerce.html

https://www.forbes.com/sites/michellegrant/2018/08/14/e-commerce-set-for-global-domination/#423b220abfaf




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