At present, the retail industry is going through a wave of change thanks to one main component. E-commerce.
E-commerce is the activity of buying and selling goods online and is growing increasingly powerful in the world of retail, mainly because of a shift in the way that consumers are looking to purchase goods. Buying online offers people freedom and convenience, especially when busy working days are getting in the way and a reliance on technology continues to be present for most.
So, how much an impact is e-commerce really having and what are the benefits and drawbacks for the UK retail industry?
The impact of e-commerce is far-reaching and can be seen across a number of major retail outlets, including formal clothing chain Moss Bros, who have lost nearly a quarter of its market value following supply chain problems and a drop in the number of customers walking through the door.
It seems that, for the modern day consumer, purchasing online eliminates a number of problem. Why leave the house and wait in lengthy queues when you can get everything you need from the comfort of your own home?
But what about the UK retail industry? How are they set to benefit (or not) from a surge in e-commerce?
Benefits
Attract more customers with search engine visibility
All retailers are looking for new ways that they can draw in customers, whether it be by enhancing their marketing techniques or launching new products. Choosing to get on board with e-commerce can help retailers as they will become visible on search engines, meaning more people are likely to visit their site and make purchases.
Keep an eye on consumers purchasing habits
Every business wants to know more about what motivates their customers to make purchases and e-commerce makes it easy to track buyer behaviours and tailor services to suit purchasing habits.
Drawbacks
It lacks that personal touch
For some retailers, their biggest selling point is the fact that they can offer shoppers a personal experience and give them something that makes them feel special and valued. Often, e-commerce platforms lack this, would might not work for certain brands.
There is no exclusivity attached
E-commerce is lowering the barriers and making it easier for almost anyone to become a retailer without the need to rent or purchase premises. But is this a good thing? When anybody can set up an online store in less than a day, surely that speaks volumes about a lack of validity and exclusiveness within the industry.
We know that for retail companies, typical business loans don’t always work, which is why our Pay as You Trade service offers an alternative that is flexible and doesn’t come with the usual red tape.