Recently, I’ve been posting about the benefit of social media in marketing world. Today, I found another interesting topic that is about a benefit of using e-commerce.
First, why do people prefer buying online than buying in the actual store?
- Convenience – Save time, no queues, flexibility of time, no pressure from salesperson
- Better Prices – easier to get more deals/ offers because you buy the products directly from the manufacturer without middlemen involved.
- Variety – Can buy different brand at one place, can buy products from retailers in other parts of the country, greater selection of colours & sizes
- Fewer expenses – no transportation cost to get to the store
- Avoid crowds
Indeed, technology is rapidly growing and more people now count on technology for doing their needs. This is why online sales had become a trend among communities. Indeed, online sales bring profit to companies particularly Myer and Debenhams.
Myer’s Full-Year Profit in 2014
Online sales were a big contributor for Myer’s profit in 2014, representing 70 per cent of the total profit. It was bigger than the sales in the actual store. Myer claimed that
“Despite the flat overall result online sales was an area of growth, and Myer said transactions doubled in this area over the past year. Website visits were up 74 per cent to more than 38 million visits in FY14, while sales via mobile and tablet devices continue to increase”
The second company that said that online sales bring more profit to their company is Debenhams. Michael Sharp, chief executive of Debenhams said that
“The first half of Debenhams’ financial year, its Online Business recorded a bigger earnings before interest, taxes, depreciation, and amortization margin than its shops, even when central costs were attributed to the digital division”
Both cases proved the rapid growth of online shopping and online business has taken place in the retail industry. In conclusion, companies who only had stores should consider expanding their business to online business to increase their profit. Other than increase profit, companies need less cost to create online business rather than opening another store.
So, what are your thoughts about online business? 🙂
@cynn93 
I’m very much agree with you! From both company and customer’s perspective, online business gives a lot advantages. Company may save money by transferring online but the expense to expand on that in not ignorable.
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Yes, as u said there are lots of advantages from doing online business. Since it cost less amount of money, I think it is advisable for small company to start their business from online business rather than in-store business.
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Faulty products or delay shipping may affect people’s thought about online shopping 😉
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yea i agree with you 🙂 But these problem can be overcome by choosing the delivery service properly. And online business often offer free return delivery to compensate their faulty products.
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not Asos, as far as I know lol
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