E-commerce has empowered small to medium retailers, business owners or entrepreneurs and companies across industries to reach out to their target audience transcending geographical limitations. A company based in San Jose can sell to a nationwide audience and can even target consumers in Europe. Likewise, companies based in Europe or further away in Asia can sell to Americans. While small to medium companies have certainly benefited from online retail, the biggest beneficiaries have been the global marketplaces.
No matter how effective an online sales strategy is of a company or a store, global marketplaces like Amazon, eBay and Alibaba are actually raking in the big bucks. These companies have championed e-commerce in a way no one else has. They were the early starters and innovated with conviction when others were skeptical about the whole premise of online shopping. It is thus fair that these companies make the most.
A recent study has inferred that global marketplaces or the e-commerce giants will actually control or have a market share of 40% of all online sales. This is a staggering statistic considering there are thousands of major sites and innumerable smaller e-commerce sites. There are only a few global marketplaces and for them to dominate to an extent of 40% implies that they will become juggernauts.
It is not surprising for many because these e-commerce giants have been doing fairly well. They have used big data, technology, smart advertising and also international couriers in a very strategic way to offer excellent products at amazing prices without compromising on quality. Whether it is a domestic courier service to the USA or international couriers, deliveries have become more certain, they are timely and efficient. From safe handling to no major mess up of orders, e-commerce has not just shaped up its own premise but has also bettered the industries associated with it.
Despite the unprecedented forecast of online retail sales and the advantage being accorded to global marketplaces, smaller players or traditional retailers are not heartbroken. They are actually hopeful that with e-commerce giants getting bigger, they will be able to focus on their niche audiences who would want better customer service and more personalization. While that may be true and might work out well for smaller retailers, the larger stores are not really concerned as they get to make windfall gains.
With the online retail industry poised to be a hundred billion dollar ballgame in ten years, there is something for everyone out there.
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