When You’re a Small Business, E-Commerce Is Tougher Than It Looks

E-commerce was considered vital by many for the success of any business and when the pandemic hit, it became clear just how important it is for retailers to go online. In 2020, a lot of businesses launched their online stores. And though it helped multiple small businesses to discover new markets which proved to be beneficial for their growth, there are instances where e-commerce didn’t work for some. One of the biggest factors why establishing an online store backfired is due to the growing number of people returning items after purchasing. Let’s now figure out why small businesses hesitate to opt for e-commerce!

Unsustainable Costs

It has been observed that many small businesses either don’t go for e-commerce and if they have, then they are actively turning away. The main reason for this is the concern about managing the cost of returns and delivery. Basically, customer behaviors have been fundamentally changed due to the ease of online shopping. People usually tend to over-purchase and then they seek to return unwanted items. This heavily affects a customer’s purchasing decision. Also, it is interesting to note that many people keep in view a retailer’s return policy before they buy anything online.

Let’s take a look at the example of Dale and Kate Fletcher. They run a shoe outlet together called Molemi and have shops in Stratford-upon-Avon and Campden. The duo embraced e-commerce and decided to sell their products online. To facilitate the customers, they offered free returns and free delivery. But little did they know that this would cost them big time! Soon, the return rate skyrocketed. According to them, the customers didn’t consider buying a shoe until it had landed on their doorstep. They would try it on and would later return it. When the duo thought to discard the facility of free returns in order to eliminate the growing costs of e-commerce, the customers became disgruntled. The customers soon stopped ordering.

Even though Molemi has backed out from e-commerce, it still has an online website. The sudden stepping out from the e-commerce sphere didn’t affect the Fletchers as their brick-and-mortar business continued to thrive. They firmly believe that e-commerce is for the bigger companies only as they can subsidize their online activities from their in-store operation.

Value for Money

Another factor that influences the decision of small businesses not to opt for e-commerce is the value for money. They think that the value obtained would not be enough to compensate for the cost they would have to pay for going online. There is a Liverpool-based business OriGym which provides people with personal training courses. When they decided to go for e-commerce, the business did find success as many people started to purchase the courses. But soon they started to get bombarded with various questions about the course which made them think that they might not have taken the step in the right direction when thinking about going for e-commerce. This also proves that going online for every business is not ideal.

Prioritizing Physical Interaction

If one doesn’t like the idea of going online then this would not necessarily hurt their business. You should know that the existence of physical shops will always matter. This is because consumers would want to have a physical interaction with a product before they consider buying. Margaret Morrison once used to have an online company called Cyber Candy. She decided to end this venture because of different reasons. One was the overwhelming demand for free shipping. She doesn’t have a web presence for her new business The Chocolate Unicorn.

The retail expert at the University of Salford, Gordon Fletcher said that e-commerce is not as simple as some people might think it is. It isn’t just about bringing your business online and doing so might not be the right thing for every venture. He suggests that before going for e-commerce, entrepreneurs should know why they want to do it in the first place. If it is just because everybody else is doing it then opting for it might not be the wise move to make. You should only do it if you are well aware of your motives.

Also, another thing to remember here is the factor of human interaction. It matters a lot when it comes to securing sales. And this is something that owning an online business won’t give you.

Conclusion

The trend of e-commerce is only getting more popular and more businesses have actively started to consider going for it. In fact, there are staffing services agencies that hunt for e-commerce experts so they may help businesses develop their online presence. But as the world of e-commerce keeps evolving, any advice on how to harness the power of online selling can quickly become outdated, making it a serious struggle for small businesses to keep up. However, before you think of building an online store, you should definitely polish your ideas and clearly define your strategy as it would help you become successful with your initiative.