The eCommerce industry is flourishing across the globe.
According to statistics from Statista, the number of digital buyers in 2017 was 1.66 billion and the number will rise to 2.14 billion by 2021.
Statista predicts Amazon’s market share of the U.S. eCommerce retail market to hit 47% in 2020. (16) To put it in perspective, that is more than Apple (3.8%), eBay (6.1%), Wal-Mart (4.6%), and Wayfair (1.3%) combined.
Image Source: MarketingCharts
However, starting an eCommerce store is more than simply buying a domain and choosing a hosting partner. Picking the right business niche, technology platform, better customer service, and marketing strategies, all contribute significantly to the success of an online store.
In this post, I’ll share with you which business niche to start, how to choose the right technology partner, and the marketing strategies that will help your eCommerce store grow.
Online eCommerce businesses that you can start in 2020
Online Grocery Industry: In the USA, one-third of all shoppers are buying groceries online and by 2022, online grocery business in the USA is expected to be a $100 billion business. However, compared to other industries (apparel, homewares), the online penetration of the grocery industry is only 3-5%. So it shows the online grocery industry is still in its early stages and a viable business option.
Online Food Delivery Industry: The online food ordering and delivery trend is certainly overtaking the trend of the traditional phone ordering service. As per the stats shared on the CNBC website, online delivery is currently representing 43 percent of all delivery orders and investment firm Cowen is forecasting a massive 79 percent surge in the total U.S. food home delivery market over the next 5 years.
A comparison chart of the online food delivery market with the offline food delivery market.
Image Source: Mckinsey
eLearning Industry: The trend of virtual learning & teaching continues to grow and elearning industry will reach $325 billion by 2025. Now sitting at your home or office, you can consult with professionals such as Doctors, Teachers, Native language Speakers, Fitness trainers, etc. Unarguably elearning industry is future and offering a plethora of business opportunities for budding entrepreneurs.
Online Travel Industry: With internet penetration growing around the world, the online travel market is touching new heights. According to a report published by Allied Market Research, the online travel market is expected to grow 11% in the next 3-4 years. Hotels and flights, online travel activities, and car rentals are just some online businesses that investors or aspiring entrepreneurs can consider to start.
Online Fashion and Luxury Industry: Growing at 6-8% a year, the online luxury goods industry is expected to reach €390 billion globally in sales by 2025. The growth of the fashion and luxury market is especially emerging in Asian countries. China is the fastest growing region in this market and India’s fashion and luxury market is expected to cross $30 billion by year-end.
Online Health and Wellness Industry: The multi-trillion dollar online health and wellness industry is providing a bundle of opportunities to earn money online. Nowadays, many people prefer to book an online consultation with their doctors and also like to buy supplementary and other health-related products online. So being an entrepreneur, investing in the online health and wellness industry seems to be a profitable business idea.
However, these business models are not the end of the world. There are many other business models that you can consider to start, like an online rental business, car booking website, or on-demand services marketplace. Choose your business niche with extreme caution as the dream of a successful eCommerce business begins with the choice of the right niche.
Influencing factors that persuade shoppers to shop online
Shoppers from all around the world have been shopping online for most of their products.Google conducted a study in the 4 major countries where the ecommerce sales are high. Top reasons for shopping online were:
- Fast Shipping – Consumers in the U.S. are much more interested in fast shipping times than in-store pickup.
- Mobile Payment (UPI Enabled) – Quick and easy access to mobile devices along with slashed data prices have brought digital payments to the forefront of retail transactions, especially in the case of UPI. This is also evident from the fact that the number of merchants accepting them has increased to over 10 million in a short span of two to three years.
- Discounted Prices – Incentivize repeat visits with promos and coupons. While U.K. consumer habits are related to their U.S. counterparts, they are more inclined to buy from the same store twice.
- Testimonials – Brazilians value product reviews from other customers nearly 2X as much as shoppers in the U.S. or U.K., so make sure they can find reviews on the top of the product page.
- Quick Delivery – The same day delivery trend continues to grow epidemically, and after Amazon, many retailers have started offering same-day delivery service to stay ahead of the competition.
The best eCommerce platforms to start an online business in 2020
Shopify is a Canadian company which started in 2006. It is one of the most popular eCommerce platforms in the market. Starting an online store with Shopify is very easy because you can set up your online store successfully in just 15 minutes without the help of any web developer.
- Shopping stands high in terms of multi-selling channels. You can easily integrate your store with Facebook, Instagram, and Amazon.
- A website built in Shopify usually has fast loading speed.
- Shopify helps you build a responsive design website and also offers Android and IOS user mobile apps.
- The platform offers guest checkout, one page checkout, and a one-step checkout option.
- Dropshipping, free SSL certificate, and 24/7 support are some of its other most popular features.
- You have to pay a transaction fee for every sale.
- Not n good option to start a multi-vendor marketplace.
Shopify offers 3 monthly packages starting at $29, $79 and $299 with 2.9% + 30¢ per online transaction. For more details on pricing, visit: https://www.shopify.in/pricing
Bigcommerce is also a Saas based eCommerce platform and is a direct competitor of Shopify. The platform was founded in 2009 and now has thousands of online stores running on their platform. The platform is known for its high-end features and low pricing.
- No transaction fee.
- Upload an unlimited number of products.
- Responsive design and search engine friendly.
- A number of payment gateway options.
- You can integrate your online store with Amazon, Instagram, and Facebook
- As written on many third-party sites, Bigcommerce customer support is not that effective.
- Limited free themes and templates.
As Bigcommerce doesn’t have any transaction fee, the platform charges you as your store grows and you need to upgrade it. Bigcommerce monthly package starts at $29. For more details, visit: https://www.bigcommerce.com/pricing/
YoKart is a popular eCommerce platform that allows you to start a multi-vendor website like to Amazon, Etsy, or Alibaba, at a reasonable cost. If you want to start any kind of multi-vendor stores such as a grocery multi-seller store, retail store, fashion store or a sports marketplace, YoKart is the ultimate choice.
- The platform is specifically designed to build an online multi-seller or multi-vendor marketplace.
- Mobile Apps, responsive design, and sleek user interface.
- One-time payment means no recurring fees.
- Fully customizable and easy to set up.
- Multilingual and Multicurrency.
- Free demos, FAQs and 12 months of free technical support.
- No Free themes and addons
- Partially encrypted framework
YoKart is a licensed based solution which means that unlike other solutions, business owners don’t need to pay monthly or yearly charges. The packages start at $1299. Visit here for more details: https://www.yo-kart.com/multivendor-marketplace-packages.html
30% of total online stores are powered by Woocommerce with 1M+ download. Popular among masses Woocommerce is a WordPress toolkit provider to extend the experience. For people who are already using WordPress, Woocommerce is free, but the hosting and extension that comes along is not entirely budget-friendly.
- Free and easy to use platform
- Wide variety of themes and plugins
- Search engine friendly
- Easy to customize
- Secure platform
- Premium themes are costly
- Scalability and support is a major issue.
- Not a suitable platform to start a multi-vendor marketplace
Woocommerce is free, however, you will have to pay for hosting and domain registry. Also, there can be an additional cost, if you opt for paid themes and plugins. Visit here for more details: https://woocommerce.com/features/
Magento is a popular open source eCommerce platform launched in 2008. If you want to start a large scale enterprise, Magento is one of the best options you have. Magento is a huge community with lots of benefits.
- Mobile Apps, Responsive Design, and Highly Secure.
- Customizable and Scalable.
- Multi-Language and Multi Currency.
- You can integrate your store with Facebook, Instagram, Ebay, and other platforms.
- Easy checkout pages like guest checkout, one-page checkout, and one-step checkout options.
- High in pricing especially not an ideal choice for small merchants.
- Programming skills required to maintain a Magento store.
The Magento basic version is free; however, the Enterprise version can costs you a minimum of $20,000 per year. For more details, visit here: https://magento.com/products
Prestashop is also an open source eCommerce platform and thousands of web-based online stores have been built in Prestashop. The platform was designed to meet the needs of small and medium-sized enterprises.
- A free solution.
- User-friendly interface.
- Mobile and Search Friendly.
- Guest Checkout and One Page Checkout.
- You can connect your Prestashop store easily with Facebook, Amazon, and Rakuten.
- No official customer support team.
- Need above basic development skills to work on the platform.
- You need to pay heavily to convert your eCommerce store into a marketplace.
Prestashop is totally free. The free version is only a basic solution, so you need to buy additional modules that cost between $50 and $150 per module on average. More details can be found here: https://www.prestashop.com/en/prestashop-ready/pricing
Every eCommerce business has different requirements, so finding a perfect solution for your business calls for a lot of time-consuming analysis. From the above list, you can choose the eCommerce platform according to your business needs, technical acumen, and budget.
Guest author: Ankush Mahajan works as a senior digital marketer at FATbit Technologies, one of India’s leading custom web design/development & ready-made e-commerce solutions company. His expertise lies in branding and formulating marketing strategies for business of a number of industries. Follow him on twitter: https://twitter.com/