September last year, the giant of business that is LEGO cut down 1,400 jobs due to a drop in sales. Yet, the most recent report from CNN Money shows that this didn’t help the company much and this year it plans a major strategic overhaul to get back into the game. Alas, there are businesses that won’t be getting back to the top-league anytime soon, if ever. Those are retailers specializing in brick-and-mortar shops. 2017 was the year of mass destruction among their number with some of the biggest renowned brands filing for bankruptcy and closing their stores. The reason?
The rise of eCommerce. This business is growing so fast, the brick-and-mortar retailers have little chance of competing. The best thing is that for all its rapid growth, eCommerce still offers planet of opportunities. This means that it’s not too late to jump the bandwagon, which is predicted to reach $4.5 trillion in global sales by 2021.
The Great Fall of Retail: Who Fell to the eCommerce Pressure?
For months now newsfeeds have been full of titles like ‘the great retail apocalypse’ or ‘the retail meltdown’. The drama in those lines is well-deserved as last year alone several dozen retailers closed their stores, filed for bankruptcies, and nearly went out of business. The most notable ‘victims’ of the change in consumers’ buying preferences are:
- Toys R’ Us
- American Apparel
- C. Penney
- The Children’s Place
- Abercrombie & Fitch
- Michael Kors
- Wet Seal
Some of them have already closed hundreds of stores and some plan to do this as a part of their restructuration strategy. The exact reasons cited by these and other affected businesses vary, but all of them boil down to one simple thing …
eCommerce is simply better and consumers are loving it.
That’s all there is to it. People prefer to shop online, so retailers invested in brick-and-mortar shops must shape up and find ways to adapt their businesses to the modern world. In the meantime, anyone with a bit of business sense and some ambition can start an eCommerce business within days. That’s definitely part of the reason why this kind of retail rocks.
The eCommerce of Today: How Does One Fit In?
Creating a website using a builder, like WordPress and finding a reliable cheap host like iPage Hosting. That’s all it takes to launch an eCommerce shop today. Compare this to finding and renting a brick-and-mortar shop. Add renovating the place and staffing it with experienced salespeople as well as other necessary staff. The difference in costs alone is staggering, and that’s not to mention the sheer convenience of running an online shop.
When one looks at this side of retail, it becomes obvious that eCommerce is the definite winner. Especially when one considers that all those extra costs translate to higher prices. The level of convenience for the buyer is also much higher in an online store. It’s true that these purchases are somewhat lacking in the charm. However, there’s no arguing the fact that in the fast-paced modern world, convenience wins.
The steady growth of global eCommerce sales is a proof of that, it’s also a sign that it’s not too late yet to join that business. In fact, now is exactly the time, especially if one plans to specialize in B2B retail. That one is soaring as compared to $2.3 trillion in B2C retail in 2017, B2B reached $7.7 trillion!
Considering how easy it is to start an eCommerce business and how high the demand for it is, there can be no doubt that thousands of online shops will pop up in 2018. The field is rife with opportunity and anyone with even a modicum of an original idea has a chance to shine. The question is, will the rapidly collapsing retailers catch on and move online while there’s still a chance?