Why you should sell online

Is your business about buying and selling? Then you should take advantage of the online space. Don’t restrict yourself to selling in a brick and mortar store, or selling to people face-to-face. There is a lot of money you’re leaving on the table this way. Even if your business is not about buying and selling, you may want to get onboard the buying and selling business because of the opportunities selling online present.

According to statista.com, up to 43% of shoppers would prefer to shop mostly online in 2023. In a survey conducted across 17 countries from January to March 2023, the minimum percentage of shoppers who would prefer to shop mostly online was 23%. Across The United States, United Kingdom, Germany, the Netherlands, Sweden, Italy and Spain, the number of shoppers who would like to shop mostly online outnumber those who would like to shop mostly offline.

According to ecommercedb.com,

Ghana is the 97th largest market for eCommerce with a predicted revenue of US$688.8 million by 2023, placing it ahead of Iceland. Revenue is expected to show a compound annual growth rate (CAGR 2023-2027) of 14.7%, resulting in a projected market volume of US$1,193.9 million by 2027. With an expected increase of 11.0% in 2023, the Ghanaian eCommerce market contributed to the worldwide growth rate of 9.6% in 2023.

Statista throws more light on the state of ecommerce/online shopping in Ghana with the following statement,

Online purchases in Ghana have experienced continuous growth over the last few years. This development has been facilitated by several factors, such as the nationwide provision and accessibility of internet and payment services. As of 2022, the penetration rate of the e-commerce market in Ghana stood at 27.41 percent. This share increased from nearly 12 percent in 2017 and is expected to reach more than 37 percent by 2027. Likewise, the number of internet users has gradually expanded. Moreover, as of 2022, close to eight million consumers made digital payments in Ghana, thereby contributing to the monetary value of digital transactions registered that year. Consequently, e-commerce market revenue has significantly risen in the country.

The engagement of Ghanaians in online transactions has steadily risen over the past few years. Therefore, there’s a large cake in the Ghanaian ecommerce/online shopping space to be shared, and you don’t want to miss it.

Supposing you make gh¢ 5,000 profit from your business every month, based on the statista report, you could make a minimum of 23% more profit by taking your business online. Putting this into absolute perspective, this would translate to gh¢ 1,150 more monthly profit.

The above profit margin difference is a conservative estimate, since you’re going to be saving on operational costs by selling online, which will translate into more profit for you.

Advantages of selling online

The primary advantage of selling online is access to more customers. This is possible for the following reasons:

1. Accessibility: People can reach your shop from any location as long as you have made your shop accessible to that location, and the shoppers have access to the internet.
2. 24/7 availability: People can reach your shop and make purchases at any time of the day, without waiting for you to open your physical shop.
3. Faster and more convenient: The buying process is faster and more convenient for online shoppers. Shoppers can make purchases from the comfort of their sofas, and have their goods delivered to their doorstep.
4. Lower cost: Many shoppers are encouraged to buy online because products are often sold at lower prices online. This is because selling online allows sellers to make more profit at lower cost themselves, passing on the cost reduction to the consumer.
5. Flexibility: On an online shop or marketplace, Shoppers have the opportunity to quickly search and find the exact products they want. Furthermore, they’re able to quickly compare products, either from the same seller or from different sellers.
6. Payment modes: Online shops or marketplaces often offer a variety of electronic payment options such as credit cards, debit cards or mobile money wallets.
7. Presentation: Sellers can present their products in attractive ways using product images, thumbnail images and description images that showcase their products in vivid ways. This helps to attract the attention and focus of shoppers to sellers’ products. You can also add product descriptions that make your products stand out from the crowd and attract more sales.
8. Affordable advertizing: It is much more affordable to gain exposure for your products when selling online thatn when selling offline. Coupled with wider reach, you are able to save on cost, which you either pass on to consumers to gain more customers, or which you keep as more profit from your sales.
9. Affiliate marketing: It’s easier to take advantage of affiliate marketing, so that others can help you sell, helping you to reach more customers.

How selling online helps to reduce cost

Selling online can help reduce costs for businesses in several ways.

1. Lower Overhead Costs: Operating a physical brick-and-mortar store comes with significant overhead costs such as rent, utilities, and maintenance. Online businesses can avoid many of these expenses, as they don’t need a physical storefront. When operating online, you can reduce the number of physical stores you operate, especially low performing ones. This helps you to save on rent and other related costs.
2. Reduced Staffing Costs: Online businesses may require fewer employees compared to traditional retail stores. Automation tools and software can handle tasks like inventory management, customer support, and even some aspects of marketing, reducing the need for a large workforce.
3. Wider Customer Reach: An online presence allows businesses to reach a larger audience, potentially increasing sales without the need for physical expansion or additional locations.
4. Inventory Management: Online businesses can use data analytics and inventory management software to optimize their stock levels. This reduces the costs associated with overstocking or understocking products.
5. Marketing Efficiency: Digital marketing methods, such as social media advertising, email marketing, and search engine optimization (SEO), can be highly targeted and cost-effective compared to traditional advertising methods. This allows businesses to reach their intended audience more efficiently.
6. Reduced Transportation Costs: Online businesses can use dropshipping or third-party fulfillment services to minimize shipping and logistics costs. Additionally, customers often pay for shipping, further reducing the burden on the business.
7. Flexible Workforce: Many online businesses can employ remote workers or freelancers, reducing the need for a physical office and associated costs.
8. Lower Capital Expenditure: Traditional retail businesses often require substantial upfront investments in store design, fixtures, and inventory. Online businesses can start with relatively low capital requirements and scale up as needed.
9. Data-Driven Decision Making: E-commerce platforms provide valuable data on customer behavior, preferences, and sales trends. This data can be used to make informed decisions, optimize product offerings, and tailor marketing strategies, reducing the risk of costly missteps.
10. 24/7 Operations: Online businesses can operate around the clock without incurring additional costs for extended store hours or overnight staffing.
11. Reduced Paperwork: Online transactions can be streamlined and automated, reducing paperwork and administrative costs associated with traditional retail operations.

Conclusion

It is obvious that selling online has several advantages over selling offline. In summary, selling online results in

1. access to a larger audience
2. more convenience for shoppers
3. flexibility and
4. lower cost of doing business
   These serve as catalysts in pulling more shoppers to your onine business.

Start selling online on TopBuyGH today!