Did you know that ecommerce isn’t new? The history of ecommerce dates back to the 1960s, when people could conduct electronic transactions via primitive computer networks.
This, combined with the wide reaching and high usage of the internet, laid the foundation of what e-commerce would eventually become.
The ecommerce marketing in Singapore is worth $4.9 billion and projected to grow at an annual compounded rate of 8.35%.
The majority of Singaporeans have bought something off the internet before. Thus, increasing numbers of businesses have expanded their footprint into cyberspace.
We explore the factors that affect the profitabililty of ecommerce companies in Singapore.
What is Ecommerce?
E-commerce stands for electronic commerce.
It refers to the process of buying and selling your products and services online, of course, without the restriction of distance and time.
That’s the basic definition. But there’s no denying that e-commerce has advanced a great deal. It’s grown to refer to a much bigger concept than the simple act of buying and selling items online.
So what is ecommerce? – The Difference Between E-commerce and E-business
People tend to confuse eCommerce and eBusiness, even when it’s pretty clear the two terms stand for two entirely different things.
Ecommerce only refers to the process of buying and selling products and services online, while e-business refers to the whole enchilada of activities – advertising, raising awareness, dissemination of information on emerging trends, and a long list of other e-commerce related topics that people search online.
E-business is an all-encompassing term for the whole process of managing your business online.
Weaved into e-business are the following e-commerce marketing activities:
· Inbound marketing
· Stock control
· Email marketing, and so forth.
Suffice it to say, e-business is a much broader concept of which e-commerce is a part of.
Benefits of Ecommerce
More Clients: With the internet, your clients aren’t restricted to a particular geographical location. If anything, distance is not an issue in this case unless you’re dealing with perishable goods, or your products and services require physical contact.
There’s always the beauty of transacting with people from other parts of the world or a different locality other than where you’re stationed.
No Schedule: Your online store is perpetually open. There are no restrictions as to what time to open or close your shop.
Unless you decide not to, your e-commerce website will always be open, 24/7, to take in new orders and process payments without necessarily requiring you to be online.
Less Costly: Setting up a physical, brick-and-mortar business is costly compared to the cost of setting up a webstore on, say, Shopify or BigCommerce.
It also comes with the reduced cost of running it. You don’t have to employ a salesperson or bring someone else on board to help you manage your store.
It can complement your Physical Retail Business: Ecommerce offers you a chance to expand your physical retail business and target people who are far off from you.
You don’t have to restrict your customers to a particular region or location. If you’re looking for a way to scale and expand your reach, look no further than cyberspace.
Bigger Profit Margin: Market extension and cost reduction all mean that you’ll be making more money as opposed to someone operating a traditional store.
With the right marketing, you’ll also be selling more products, thus making more money in the process.
A chance to Scale: Online busines is easy to scale. All you have to do is figure out how to reach more people.
Come to think about it: you have no limit as to the number of people you can sell to. It’s your choice to make.
The only limitation you have is figuring out how to attract more customers to your ecommerce website.
For all its pluses, it is imperative for ecommerce companies in Singapore to understand that it’s not always rosy with on the internet. There are concerns and challenges to be addressed or faced head-on as you embark on your e-business journey.
These challenges include:
Lack of trust
Online customers have limited knowledge of your business with almost zero collateral on whether you’ll deliver on your promise.
You have to work on inspiring trust among customers that interact with your brand or business. In other words, you need more earned content – reviews, comments, and recommendations.
Secondly, make sure you have installed an SSL security certificate on your e-commerce website. If not for anything else, you have to do this to avoid giving your customers another reason not to trust you.
Results don’t show Immediately
Starting an internet store is not a walk-in-the-park. There’s so much involved in the whole process.
Unlike a physical store where you can open your store today and start making sales as early as the next five minutes, ecommerce demands that you exercise patience.
You have to allow time for your marketing to kick in and give your website more time to gain visibility before sales start trickling in.
Factors affecting ecommerce companies in Singapore
Key Ecommerce Trends in the Current Year
Online sales have been steadily growing over the years, and this year comes with its share of contribution to what the future holds for it.
Here are a few e-commerce trends to watch out for:
It’s been estimated that more than half of all e-commerce shopping happens via mobile.
The same studies go on to reveal that Singaporeans spend more than 4 hours a day checking their mobile phones. As a serious marketer looking to scale your business, that’s a market segment you do not want to take for granted.
So, what should you be doing?
When it comes to web design for e-commerce, make sure both your app and website is optimized for mobile. You want to provide the best online experience to users who interact with your business via mobile.
Voice assistants, such as Siri, Google Assistant, and Amazon’s Alexa, have never been this popular, and this could be the year when they finally make it mainstream.
It’s even predicted that in 2 years time there will be more than 8 billion devices with voice assistants. The same study also goes on to estimate that voice shopping would, by then, have grown to $40 billion.
Headless e-commerce is the new craze in the world of e-business. Essentially, this concept allows you to decouple the presentation layer of your website from the e-commerce functionality. This occurs in the technical backend of your website.
The result is a more customized online experience for your customers, laced with richer content.
This could be the year when more and more e-commerce stores adopt this simple but useful concept.
Ecommerce Marketing Consultants – What is Selling Online?
It is always important to have your pulse on what consumers demand. Thus, successful online companies in Singapore place a high emphasis on getting market data on what is selling online.
Professional marketers should be called in to conduct research, help to market your existing products as well as make recommendations.
Their knowledge of the industry, as well as their access to specialised market analysis tools, also allows them to make data backed recommendations on what customers are truly buying online.
Approach an ecommerce marketing agency if you are thinking of opening an online business but haven’t decided what to sell yet.
So here you have it.
All you need to know about “what is ecommerce?” as well as what factors greatly affect profitability of ecommerce companies in Singapore.
In case, you are thinking of setting up an ecommerce store of your own or require help becoming profitable in your existing endeavour, feel free to contact Blazing Conversions today.
We know that every business is different. You’ll have our full attention as we listen to you and create solutions to your problems.