Post about "E-Commerce"

Economic Recession Paves Way For A New Phase of E-Commerce Development

E-commerce businesses have grown at an incredible pace over the past few years. All kinds of e-commerce websites shared a slice of this pie, riding on the wave of overall fast growth. The economic recession is a litmus test that distinguishes astute e-commerce businesses from the shortsighted ones. The slow growth rate could bring many e-commerce websites to their knees, questioning the effectiveness of their tactics.

Though the recession has slowed down the growth of e-commerce, it has not stopped it. This is significant at a time many retail stores are facing heavy losses. E-commerce businesses should definitely not close down shop in the recession. Rather, they should focus on more aggressive strategies to make the e-commerce venture successful.

The trend of e-commerce development can only be understood by examining the sales figures for e-commerce websites.

Increasing market share of internet businesses

Though internet advertising did not match with the predictions for 2009-10, the close to flat growth is still better than the major decline seen in traditional advertising on television, radio and newspapers. The Internet is gaining popularity amongst people of all ages and internet businesses are being used by an increasing number of people. Not only the young adults but also the men in the 45-65 age groups browse the Internet for many hours in a day, and women are not far behind.

The trends suggest some important implications for e-commerce website design and development.

A good time to invest in e-commerce development

E-commerce has shown resilience during the recession. E-commerce websites have maintained their profit margins, in stark contrast to traditional brick-and-mortar stores. The present time is favorable for launching an e-commerce website, as cost of design and setting up of e-commerce websites are very attractive.

Budget for e-commerce development should be readjusted

Usually, budgets are built on the previous year’s budget after including necessary increments. However, the market has changed drastically as a result of the recession. Traditional media is not as powerful as emerging media for marketing and advertising. Budgets must honor these changes and allocate sufficient funds to internet businesses for exploiting online media to spread brand awareness and build brand image.

E-commerce website design should attract a broad audience

The internet is no longer just an entertainment media for teens. It is an instrument of business and has broken barriers of age, gender, race and culture. The target audience of e-commerce businesses has broadened and the website design should make all customers comfortable. The website should be customer friendly, simple to use and the content relevant to the targeted audience.

Businesses that do not have e-commerce outlets are losing out not just on revenue but also on establishing their brand. E-commerce websites increase the online presence of a business, boost revenue, and expand the customer base, all the while saving costs on overheads. E-commerce websites are here to stay, and businesses should acknowledge their value sooner than later.