Why Small Businesses in New Zealand MUST Go Online in Order to Survive These Days
The Internet has created a new economic ecosystem, the e-commerce online marketplace, and it has become the virtual main bazaar of the world. Providing a quick and convenient way of exchanging goods and services, e-commerce has boomed all over the world and in New Zealand in particular. Today, e-commerce has grown into a huge industry with US (New Zealand statistics are yet to be advertised) online retail generating $250B in revenues in 2010, with consumer-driven (B2C) online transactions impacting industries from travel services to consumer electronics, from books and music to sports & fashion accessories. With more than 70% of Kiwis using the Internet on a daily basis for private or business use, e-commerce’s growth curve is not likely to decrease anytime soon. In the last decade, many small e-commerce companies have rapidly stolen market share from traditional retailers and service providers, pressuring these established traditional players to deploy their own commerce websites and change their company.
According to NPD Group, consumer electronics, which includes the purchase of digital cameras, mobile phones, and computers, accounted for $26B of worldwide ecommerce sales occurring in 2006. As traditional brick and mortar companies continue to lose market share to e-commerce players, they will likely see continued declines in their revenues, operating margins, and profits. It is important to note that most ecommerce players are at a competitive advantage to retailers.
They have lower operating expenses and better inventory management due to operating in a virtual commerce environment. For example, (AMZN) has revenue per employee of nearly $850k while its retail counterpart, Best Buy (BBY), generates revenue per employee of only $270k. Nevertheless, traditional retailers are scrambling to keep up with the e-commerce trend, offering online catalogue shopping in addition to traditional stores. Without a doubt, e-commerce retailers will have the most to gain if they successfully disrupt retail customer acquisition and under-price retail businesses.
Obviously, pure play e-tailers that develop and deploy the most unique web technologies to enhance consumer experiences and keep prices competitive will be in the best position to ward off the “click and mortar” group.
The solution is joining online malls, where online shopping marketplaces are created. As a growing collection of small businesses, small businesses create and maintain online shops (online shopping carts), without the difficulties that involved in purchasing and developing an expensive stand alone ecommerce websites. The setup is so easy so anyone can open an elegant online store on these online shopping malls, in a matter of minutes, joining an ever growing marketplace of small businesses, and start selling online immediately.
In New Zealand, having an online store in online mall is a comprehensive eCommerce solution that gives many New Zealand’s SMB (small to medium businesses) owners a better connection with New Zealand’s online shopping market, in a very affordable price. Think about it as the biggest mall in New Zealand, don’t you want to be there?