Why E-commerce is Overrated
17 SEP 2015
It seems that everyone today has this idea that you can sell anything on the web. It has become such a predominant assumption that setting up an online store, put stuff up and get it sold to make your first million is not a big deal, or is it?
Unfortunately, the reality is not that straightforward, not unless if you have a prior investor or a large conglomerate corporation backing you up with millions of dollars in capital with an initial interest invested in your online store, otherwise you are bound to not make your first million yet, and it may also lead you to potentially failing entirely. So it all beckons the similar common question, why E-commerce and will it work? When it should be;
The most basic question of all
What will your potential customers buy from you?
Although opening an online e-Store is definitely cheaper than your monthly overhead of owning an actual retail store/outlet. Saving up on staff salary, ground marketing and etc, there is something that needs to be clarified with all potential E-store owners.
The E-commerce market scene today is common place, and it has also become more competitive.
We are talking about individual stores, retails stores whereby they compete with other merchants within the same store like Lazada
Today Lazada and Zalora has remain a class on its own, setting the standard and benchmark of how E-commerce should be done, aside from competing with others who seek to join in the bandwagon with them.
The important aspect here is not to seek, and just follow what others are doing
, but to understand your business model, in terms of what sells and makes you money and what doesn’t. There is absolutely no point in starting a business to only realize you cannot answer the most basic question
, which is “What will your potential customers buy from you?".
While every other individual online store are spending money away on Digital marketing, google Ad words, and even through e-marketing, the goes on and on,
just screaming a piece of the cake. Not everyone will get the same amount of traffic.
Every online store improves significantly to help users determine what is it they are buying
, why they came to their particular e-commerce site and the client’s potential patterns of buying a specific or multiple products.
We are looking at an online potential market size that has grown to RM 5.76 billion in 2015 alone as shown below in these projections.
E-stores today significantly strategize on price wars and also leveraging on free shipments or discounted shipments, to specific high volume areas because they know they can leverage on it and make a quick buck, or lose money for the sake of marketing its store branding awareness.
There are also many forms of E-Commerce, that may work individually or with multiple relationships within an e-commerce business model
, such as the most common one, B2C
(Business to Consumers), B2B
(Business to Business), C2B
(Consumer to Business), C2C
(Consumer to Consumer), B2G (Business to Government), G2B
(Government to Business), and G2C
, (Government to Citizen) models. All of these function differently and take leverage on different part of the system, so they lose out in one area, but make money form the other. It’s rare to see one system fits all, as it all depends on the business model of the marketable products or services that is being sold to its target audience.
When we mention audeince? How big is it? That is always the question, herebelow the anticipated growth rate of online market audeince is said to grow up to 21 million, that is 4 million addtional online consumers by 2016 in Malaysia alone.
So, is E-commerce overrated? Maybe. Is E-commerce deployed feasibly and with increased accuracy to your target audience? Not yet. So as we all can observe, there is a lot of room for improvement on the later.
This is where we step in, when it comes to setting up an online store, we take great care in providing our clients with proper consult and a feasibility analysis.
We guide our client the process from the beginning till the end
to ensure that we have provided our clients with all the best options and recommended choices.
We dont just help our client build and E-Commerce store, we must walk with them through it
We then walk with them from each phase to ensure that their E-store is a success after deployment, and they are able to taste the sweet experience when they get their first client to sign up and purchase
from their online store.