E-commerce & online marketplace are trending today. Here are their pros and cons.
The advent of technology has drastically changed the business landscape for the past decade. It has provided more opportunities for retail stores to expand and for budding entrepreneurs to fulfil their dreams of getting their products and service out there. Businesses, especially start-ups, now have the potential to reach a wider audience thanks to the internet. There is no better time to start an online store than today where the benefits from the internet are ripe for picking.
The rise of electronic commerce and the online marketplace
It’s an increasingly digital world and for the past decade, there has been a significant rise in e-commerce sites. Electronic commerce, or e-commerce, pertains to the goods and services exchanged through online transactions between a customer and a seller. When the internet was still being introduced to the Philippines in the early 90s, Filipinos already took advantage of e-commerce, selling and trading goods online. Now, it has changed the online business landscape and the numbers are staggering. From 30.2 million online shoppers in 2016, the country rose to 41.9 million in 2019. This year, it’s even projected to close with 46 million shoppers.
Worldwide, e-commerce is even bigger. With a global population of 7.7 billion people, there is an estimated 2.05 billion global digital buyers in 2020 -- that’s actual people going online to shop for anything under the sun. These numbers will continue to dramatically incline as the years go by, proof that the future of business can be found on the internet.
E-commerce includes the online marketplace, a type of e-commerce site that allows the customer to shop from many different sources. Online marketplace provides consumers with options of the same product which makes it easier to track product availability of other brands in real time.
E-commerce in the Philippines
More and more brands and small businesses in the Philippines have realized the importance of planting their roots online. In 2019, 92% of the Philippines’ 76 million internet users have visited online stores to look for a product or service to buy and 75% ended up purchasing it. According to the study, the top three categories e-consumers have spent on locally are fashion & beauty, electronics & physical media, and food & personal care.
Shop Straightforward, a local fashion brand, has kiosks all over the country but they ventured into online selling to cater to even more customers. Smartphone giants such as Samsung and Huawei have official online stores, allowing people to skip lines in a physical store. Personal care and home essentials such as groceries, laundry detergents, and even diapers can now be ordered from the comfort of home.
Both e-commerce and online marketplace are rising trends in the online landscape and modern consumerism, but what exactly is it that makes these two revenue models of today successful?
Why entrepreneurs should venture online
With an online business, entrepreneurs wouldn’t have to set-up a brick-and-mortar shop, all they have to do is to make sure they have stable internet connection and a good product or service. This even allows the business capital to be focused directly on the business itself.
Being available online means the products aren’t locked in a single location where limited people can see it, it can reach as far as overseas and worldwide and made available 24/7. Advertising is likewise made easier thanks to social media, people can share with just a click of a button.
When it comes to shipping the products, online entrepreneurs won’t even have to venture outside their houses, they can conveniently contact logistics solution providers such as Entrego to reliably deliver their products to customers.
Navigating the world of being an online entrepreneur can be tricky but platforms such as Entrego provide resources and experience to become successful online sellers. Entrego is a technology-driven business solutions provider with affordable alternatives for the fulfillment and logistics needs of enterprises in the Philippines. Being almost a decade in the industry, they are guaranteed to deliver your items efficiently.
Entrego's courier and express parcel management is operated by Entrego Express Corporation. Entrego Express Corporation is an affiliate of Entrego Fulfillment Solutions Inc.
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