and Expected to Undergo an Exponential Growth
Online Ecommerce Business: This Is Definitely Not the End
It has been long since market pundits publicly announced the end of the e-commerce ‘story’. The so-called market experts have time and again questioned the viability and scalability of an e-commerce business or in layman’s term — an online store. But the e-commerce industry as a whole has come back from the dead every time it was written off.
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The e-commerce industry, with its in-your-face stats and figures, has time and again slammed the naysayers with the punch-line that it is here to stay. One of the cornerstones of the viability of the e-commerce business is the fact that the e-commerce industry has witnessed unprecedented growth in the last 5 years.
This tremendous growth has got a boost due to the rise of the mobile market since mobiles are currently the leading gateway to online shopping.
Even though the rise and growth of the e-commerce industry loud and clear, the skeptics still have questions regarding the future of e-commerce business. Some have even gone on record to say that the industry is dying a slow but sure death. They backed this statement of theirs with the market figures which show the e-commerce giants such as Amazon, Flipkart, and Snapdeal posting losses ranging from 1500 crores — 2500 crores for the year 2018. But what they didn’t notice or chose to ignore is the fact that these e-commerce giants have posted whopping revenues ranging from 11,000 crores — 15,000 crores for the year 2018. This is almost treble the amount they posted for the year 2017!
Such mind-blowing figures and the ever-increasing popularity of the e-commerce portals among the masses is enough to reject the claims made by market analysts and experts that e-commerce is dying.
It certainly is not! It certainly won’t in the near future too! To back this up, here are some reasons why the E-commerce business is here to stay. Read On…
Increasing Use of Smartphones: As mentioned earlier, the ease of online shopping through smartphones is one of the major factors in the rise as well as the steady growth of the e-commerce business. And since the number of people who own a smartphone is increasing day by day, the number of people signing up on eCommerce portals to buy their desired items online is also increasing. With the continuous spread of mobile data in tier 2 and tier 3 cities, the consumer base is constantly on the upward trajectory. Moreover, since many people in these cities can’t afford to shop from branded brick and mortar stores, online shopping is the way to go!
Continuous and Increased Funding: The best and the simplest way of judging the current status of any business or industry is by taking a look at the funding or investment it is receiving. And by this logic, it can surely be said that the eCommerce industry is one of the most dynamic industries when it comes to receiving funds or investment.
Related – eCommerce Challenges
Sample this — Flipkart raised an eye-popping $1.4 billion from Tencent Holdings Ltd., eBay Inc., & Microsoft Corp. This is by far the largest fundraising in Indian eCommerce and pegs Flipkart’s valued at $11.6 billion! The other eCommerce giant — Snapdeal has raised about $17 million from its existing investors. In order to counter these fresh funds raised by Flipkart and Snapdeal, the giant among them all — Amazon has increased its India investments to $5 billion dollars!
In a scenario where money is flowing like water in form of funds and investments, isn’t it bullshit to say or think that it is the end of the road for eCommerce business?!!
Advantages over Physical Stores: eCommerce stores or online stores have always had an upper hand over physical stores in almost all the aspects. And this is going to stay the same way in the future too. What people love the most about shopping from eCommerce stores is the fact that they can do so without having to venture out from the cozy comforts of their home. Add to this the fact that they can view the whole range of products and items available at the online store by just swiping on their mobile screen! Isn’t all these advantages offered by the eCommerce portals so wonderful?! Physical stores are never going to beat eCommerce businesses on these fronts. So why the heck should one says or thinks that the eCommerce business is lying on its deathbed?!
Thus, it can be very confidently stated that the only direction eCommerce business is headed to be straight up with ever-increasing revenue and profits. If one still thinks or believes that the industry is dying, it is high time they shut up!
Kristy Davis is a Marketing Manager at i-Verve Inc, an innovative Magento Development Company for web and mobile platforms. She is responsible for communication, marketing and business development of the company. Apart from the responsibility of strategic business development, she looks after branding, media relations, and advertising. Kristy also directs and manages sponsorships, marketing training, and events in the company. She has been involved in various high profile roles in the marketing industry. When she is not making any magic at her desk, you’re likely to find her exploring nature, eating her way through Lakeview, and Wrigleyville’s finest cuisine and its surrounding suburbs or taking a drive along the Western Avenue. Her camera rarely leaves her side.