According to the US Census Bureau, ecommerce sales are now accounted for almost the 10% of total retail sales. In spite of a solid expected growth, SMBs still struggle to compete with big players mainly on their prices and their inventory levels. However, this should not be a dead end for small and medium businesses and cause them to give up with ecommerce, and they should, instead, focussing on crafting a sustainable SMB ecommerce strategy.
Shocking high number of SMBs still lack their own website. However, from this fact, we can not reach to a straight conclusion that they are not active in ecommerce at all. Marketplaces like eBay and Amazon let SMBs to leverage ecommerce, in their big branding shadow, even if those businesses do not have their own domain hosting their independently running webshop.
Actually, such an SMB ecommerce strategy might be logical and more effective for some businesses to drive online revenues rather than building up their own branding under their own website. A study conducted by PwC showed that nearly half of the online shoppers named Amazon as their favorite online retailer and more than 10% named eBay as such. From the performance perspective, these two giant marketplaces drive around the 30% of the total ecommerce website traffic.
Offline presence through physical shops may also have an impact on online sales, from an omnichannel perspective, but this is not expected to be a substantial level consider small and medium businesses. The more common customer journey in ecommerce is mind, one would expect the other way around, i.e. online presence, therefore research, would lead to offline sales.
Webrooming, is actually where the big opportunity lies for SMB retailers, when we consider that 70% of shoppers engage with that particular activity within the journey leading to a purchase. Therefore, small and medium businesses should better focus and building an online presence to make sure that their customers can find their products online.
Nowadays, we are also hearing the phrase “Buy Button” quite a lot. Many social platforms like Facebook, Twitter, Pinterest etc. or search engines provided such integrations which led to its more widespread use and this trend is quite likely to have a positive impact on the sales numbers of SMBs as well. In essence, the idea here is to enable more purchase moment, or shopping touch-points.
Online presence is more of crafting an experience to fulfil the need of shoppers finding what they are looking for, online. The online attention span of consumers is quite fragmented today, so the SMBs should be monitoring those diversified channels where shopper browse online closely, and make sure that they integrate their product information across those channels like Amazon, eBay, Google Shopping and more.
With that (being findable online) in mind, actually small and medium service-oriented businesses might also think similarly. The key for SMBs here, is to be discoverable online, as that’s the common way of discovering in today’s world.
In short, there are many opportunities for SMBs to dive into ecommerce, and leverage it to full extent. And the focal point of an SMB ecommerce strategy is to prioritise existing and opening up a shop where their customers are, and that’s quite clearly, the internet. – either on desktop or mobile or whatever the bright future of ecommerce will bring.
Small and medium ecommerce businesses may sometimes fail to compete within their market and lack required much needed market intelligence to better position themselves and increase their market share and sales volumes. Thanks to Prisync’s SMB-friendly packages, we provide a fully automated competitor price tracking software to all sizes of ecommerce companies from all around the world. To boost your price competitiveness in the ecommerce market, SIGN UP FREE FOR PRISYNC NOW and make it part of your SMB ecommerce strategy.