Starting an eCommerce vs. Traditional Business in Today’s Market
The vast majority of entrepreneurs who start their own businesses are interested in establishing a successful track record of longevity. There are not many business owners who actually want their businesses to fail. However, the truth of the matter is that many new companies don’t stick around for very long. Thirty-four percent of small businesses fail within two years after they first open, according to a study conducted by the Small Business Administration (SBA).
That same study showed that over 60 percent of small businesses were able to make it past the sixth year, and the average life expectancy of most small businesses overall is just a little over 11 years. There are several reasons why starting an eCommerce business will increase your chances of beating those odds and surviving within your industry.
The Golden Opportunity of eCommerce
If you are interested in starting an online business, then you are pursuing a golden opportunity. The overhead expenses and startup costs for most eCommerce businesses are less burdensome than the costs associated with starting traditional, brick-and-mortar businesses. This basically means that more of your annual revenue will hit your bottom line and remain there. That will allow you to grow and expand your business much quicker in a shorter period of time.
The customer demand for eCommerce products and services is steadily increasing with each passing year as well. The number of online shoppers is expected to grow to over 190 million people by 2016, according to Mashable.com. Even though eCommerce sales exceeded $200 billion in 2012, this number is expected to surpass $327 billion by 2016, according to the site. By starting an eCommerce business, you will be positioning yourself in a high-demand market which will also make it much easier for your company to achieve success in the long run.
The End of Traditional Store Domination
Traditional stores used to dominate the retail industry years before the digital age took over. However, it is becoming clearer with each passing year that this type of shopping is no longer the most popular option available. Over 70% of shoppers agree that they can find a better deal by searching the Internet than shopping through traditional stores, according to Mashable.com.
The most efficient way of increasing traffic and maximizing exposure, then, would be to establish a strong online presence. An eCommerce business depends on a strong online presence in order to survive, so you will already be ahead of many other businesses that still have not made that transition. This head-start will provide you with a competitive edge that you may not have had otherwise.
The Bottom Line
Regardless of the type of business that you decide to open in the near future, you will have to face challenges and obstacles that may threaten its overall stability sooner than you may think. As mentioned earlier, a substantial number of businesses are not able to survive these challenges and fail within the first several years. However, by opening an eCommerce business and building a solid foundation for growth and longevity within this thriving online market, you will be able to effectively pave the way for success in your respective industry.
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