Now, we’re not going to sit here and claim that Covid made eCommerce important. Online businesses were already booming well before the global shut down hit. But what it did do is reshape consumer behaviours and accelerate eCommerce adoption way beyond anything we might have imagined. To put it bluntly, it made eCommerce vital to business survival – and that’s very much still the case today for many industries.
Making the business case for investment in eCommerce
Unsurprisingly, online use soared during lockdown, with time spent online leaping by more than 29%. It’s no coincidence that globally, revenues from online spending increased by more than 180% in that same period.
With no bricks-and-mortar stores to browse, everyone was forced to go online for things they needed and the things they simply wanted to brighten their day. Those who would never have dreamed of using an online supermarket were suddenly clamouring for delivery slots, and concerts, exhibitions and even fitness classes moved online.
The convenience factor alone means those behaviours are hard to unlearn. While many of us have migrated back to instore shopping in the four years since the pandemic hit, we’ve also stuck with the convenience of eCommerce, often pairing in-person visits with online orders.
What’s more, services like click and collect which bridge the gap between online and physical stores are more popular than ever before. While it’s a mere sliver of what’s possible online, the click and collect industry alone is now worth more than £30 billion per annum.
Regardless of your B2B or B2C status, one truth is now unavoidable: if you sell any kind of product, you need an eCommerce presence. In this new era of research, referrals and reviews, even some types of service businesses could benefit from an eCommerce website.
Whether you’re a window cleaner, a cleaning business, a parcel collection company, a small appliance repair expert or a beauty salon, allowing customers to book and pay for a service or appointment online at their convenience could boost your bookings and plump up your bottom line.
Adding up the cost of eCommerce
Setting up an eCommerce operation requires a decent amount of planning and of course, a budget. There are several things you’ll need to pay for including:
- A domain name if you don’t already have a business website
- Website hosting if you don’t already have a site up and running
- Web design – this could be a pre-made template which you can then customise or, a bespoke design created specifically for your business
- A web developer to build your new website
- An eCommerce platform. You can use a plug in like WooCommerce if your site runs on WordPress which is free to use, or you can go for a platform like Shopify where you’ll pay a monthly fee
- A payment processing service – you’ll pay a fee per transaction, with fees varying from service to service. Popular options include Stripe and PayPal.
With so many variables, the final cost can vary massively. One of the most expensive components is the web design and development of your site. If you go bespoke, you could pay thousands of pounds whereas a template could be just a few hundred.
Other costs of expanding into eCommerce
Once your site is designed and launched, you’re ready to move into the really exciting phase of expanding into eCommerce: the ongoing marketing and sales side of things.
Ongoing marketing is vital to make your eCommerce site a success. This is how you’ll attract new customers, spread the word about your business and start to take online orders.
It goes without saying that you’ll need a decent budget available to promote your eCommerce site. Agency and ad fees can quickly add up. Some businesses spend tens of thousands of pounds per month just to appear on Google. You may then also want to consider display advertising; whereby banner adverts are displayed on websites that your target audience is likely to visit. Working with influencers to spread the world on social media is also another popular option but again, can be pricey.
Other forms of promotion, such as social media advertising, boosted posts and email marketing can additionally add a few zeros to what you should expect to spend.
You may also need to invest in a new team member or two to run your eCommerce operation. As more customers visit your site, there’ll be order processing to handle, customer service queries to respond to, and product packaging and dispatching. You’ll also need to have a returns process and inventory management, along with the ability to add new products to your online sales portal as your business grows.
Is it worth it?
There’s no doubt that expanding into eCommerce is no small feat. There’s a lot to think about, a lot of design and marketing strategy to plan out, a lot of technology to get your head around and myriad new logistics and operational processes to develop and implement.
As well as dealing with new systems such as inventory management and payment processing, you may need to hire new team members and invest in new warehouse space. At this point, you might be wondering if the effort and expense is really worth it.
The answer is a resounding yes. eCommerce opens myriad revenue channels and growth opportunities for your business (“This time next year…”). If you can ship internationally, it could even take your brand global.
One of the key benefits of adding an eCommerce arm to your existing business is that you can make sales around the clock. The internet never sleeps and while you might, your online store does not. From taking orders 24/7 to giving you a national or international presence without the expense of multiple commercial properties, online sales are undoubtedly the way of the future.
There are other benefits too, beyond those immediate brand awareness and sales advantages. Online stores gather a huge range of data, allowing you to monitor consumer behaviour, identify new trends and lean into data-driven decision making.
We can help
If it’s time for you to get serious about online sales, we can help with a working capital loan to finance your expansion into eCommerce. The funds could be in your bank in just a few days, giving you the capital you need to get started right away.
Get in touch to discuss your options with one of our helpful Punks.
