Why eCommerce is the best solution for your business in a pandemic
The advent of COVID-19 is not what anyone in the world would have predicted. It is not what many people like to witness ever again as it affects many businesses. However, the same pandemic has brought about a paradigm shift and a new diversion to the eCommerce market.
The COVID-19 has ensured an increasing surge in the eCommerce market and has brought a lot of acceleration in digital transformation. As the lockdown became the new normal in 2020, many businesses went online full-scale, providing large quantities of goods and services for consumers.
In this article, you will be shown why eCommerce is one of the best solutions for your business in a pandemic and how to get a working capital loan for running successfully.
Why you should have an eCommerce business
There are a lot of reasons for you to consider having an eCommerce business. First is that you have the opportunity to make your products seen and purchased by many people all over the world. However, this would not have been possible if your business is rooted in physical locations, as you will be limited by time and space.
Also, e-commerce would provide endless possibilities and expose you to new market settings to explore, cultivate and grow your revenues.
How eCommerce works
To launch your business successfully online, there are a couple of things for you to consider. One of them is to know how eCommerce works.
Several websites doing eCommerce business undergo a series of steps to function effectively. From coding, database to the use of third-party applications—such as a payment gateway. The following is a typical analysis of how works:
- A potential customer browses through an eCommerce site either via search engines, advertorials, or referrals.
- The site then connects with the database, which harbors many data in different product categories, dimensions, weight, article contents, images, et cetera. After that, the requested webpage is rendered to the end-user.
- The customer then adds a product or service to the online shopping cart and might cash out.
- The customer’s credit card details must be encrypted and sent to the Payment Gateway, safely processing it.
- After the order is complete and payment confirmed, the site provides an estimated shipping time, a special transaction ID, and a tracking number.
- Orders are stored on the website database and accessed by an administrator who fulfills the order in-house or via a third-party shipper.
Advantages of having an eCommerce store in a pandemic
Since there would be movement limitations and physical presence during a pandemic, the eCommerce business has resolved issues that may arise after that. Below are some of the advantages of having an eCommerce store during a pandemic:
- Creates an increased market reach in a global customer base
- Reduction in costs of goods, services, transportation, etc.
- Safe and encrypted transactions
- Short distribution chain
- Faster order deliveries
- The benefit of making anonymous sales
- Acquisition of customer data for future sales research and forecasting.
How a small business can start an eCommerce
Although there are notable differences in eCommerce, there are still a couple of similarities compared to the physical businesses that we are more used to. One of such is to have a working capital loan. We have carefully earmarked a few steps to follow to start an eCommerce as a small business.
- STEP 1: Do proper research on eCommerce and decide on which niche to focus on.
- STEP 2: Choose a business name and prepare a legal structure.
- STEP 3: Apply for an Employer Identification Number (EIN).
- STEP 4: Obtain relevant business licenses and permits.
- STEP 5: Choose a platform and build an eCommerce website.
- STEP 6: Source for or develop new products.
- STEP 7: Market your business.
Conclusion
Many advantages come with an eCommerce business compared to what you have in a typical business setting. You have the luxury of operating on a 24 hours basis for all customers around the world. However, you need to be dedicated to your business to emerge as an internet success. Meanwhile, it would help if you obtained a working capital loan before making this happen.
