Today with a lot more people researching and purchasing products through the internet, a reliable online presence for many businesses is becoming more and more crucial.
A study conducted by World Wide Worx, and commissioned by Google SA last year, found that the internet economy contributes about two percent to South Africa's GDP. It also revealed that this contribution is rising by around 0.1 percent annually, and so it would be a good idea to begin thinking about expansion in this direction. This seemingly small percentage represents a substantially large market of-course, particularly for SMMEs. As a small business in South Africa, there is possibly no better time to consider expanding or even moving your business online!
The first thing you need to consider when deciding on an online store is precisely who your "target market" is. In SA, as compared to some of the first world nations, a smaller percentage of people would be inclined to shop online. However, this is also influenced by the nature of the business, and performance of the industry niche. If you own butcheries in the lower suburbs, for example, an online store targeted at your customers is not likely to be very successful. However, if you own an exclusive boutique in an upmarket area, your target market is more likely to look for and indeed expect you to also offer an online store!
Once you have assessed whether or not your type of customer would go online to make purchases in the first place, you can begin to consider moving or expanding your business online. There are various advantages that accompany an online presence; three of the most important are discussed below.
Lower operational costs
Establishing an online infrastructure is cheaper than expanding physically, yet the financial rewards can be equally, if not more significant! Your overhead expenses for the online store will also be very low, as the expenses of managing this digital store are marginal, including the likes of internet marketing campaigns and web-hosting.
Wider market span
Your online store will have no geographical restriction. Provided you have a logistics or courier system in place, you can comfortably service customers who need your goods or services nationally. This empowers you to capture a prospective market that otherwise could take you years to physically reach, and would ordinarily demand a far greater capital outlay!
Minimum startup capital
Developing, designing and building an online shop, although cheaper than a physical investment, can still exceed the available budget of a small business. If you are unable to pay to build a satisfactory online store, you can consider using the services of an e-commerce vendor initially. Some of the most popular e-commerce vendors are ShopDirect.co.za and Ushop.co.za. These give you the necessary platform to create your shop, upload your catalogue and have secure online payment methods. For a reasonable monthly fee, these e-commerce vendors will allow you to run your online store through them!
By taking into consideration the above information, you can evaluate your current growth plan and decide whether an online store is for you. Generally, moving your business to the digital market space can greatly benefit you in the long run with access to more customers and less overhead expenses, compared to running a physical store. If it is practically possible to sell your goods or market your services online then the probability is that an online store will be a fruitful step in the right direction!