eCommerce Buying and Selling, the New Normal
E-Commerce Seller Financing • August 28, 2020
The eCommerce industry has been growing exponentially since 2014. Online buying and selling are becoming the new normal and while there are several reasons for this, one player has changed the game. Social media spreads brand awareness and stretches the marketing dollar. It is one of the most important factors that stimulates the growth of online shopping and eCommerce businesses.
The Impact of COVID-19 on eCommerce
Since the COVID-19 outbreak, we see that eCommerce sales have increased the value of the online marketplace. The virus caused unprecedented, massive change to stock markets and the economies of almost every country, leading to a worldwide economic decline. On the other hand, the shelter-in-place orders have been greatly beneficial for eCommerce sellers all over the globe.
Online groceries, entertainment and of course, apparel shopping, have all become household practices and the new normal. People follow the social distancing guidelines and shop from their couch, rather than hopping in a car and going to the mall. Consumers are now more motivated to stay at home and shop online. Intuitive mobile apps, websites and touch-points all help make this process easier. E-Commerce has also helped in preserving jobs, especially among warehouse workers and in the transportation sector.
Largest Online Retailers
While this might seem like the perfect storm for a new eCommerce business, there is still stiff competition. Brick-and-mortar giants like Target, Best Buy and Walmart can still scoop up huge portions of the online sales. The top 10 globally known eCommerce retailers include Etsy, Amazon, Apple, Walmart and Dell Technologies. Most of these retailers are from the US, although several also operate in China.
As you probably already know, Amazon is the largest eCommerce company in the world. This massive online retailing company has a wide range of products that can be bought in bulk or for personal use. Amazon has also been called the king of eCommerce and has built an impressive empire. It offers web-based services as well book-selling, movie access, audio-books, data storage and much more.
Walmart is the second-largest global online retailer by yearly revenue. It is a massive company with 1,500 brick and mortar stores around the globe. Walmart changed its name from Wal-Mart Stores Inc. to Walmart Inc. to draw the attention of consumers to its growing online retail platform. Walmart and Amazon are now engaged in direct online competition. Both innovate by introducing services like same-day shipping and drone delivery.
eBay is another globally known online retailing platform. The logo of eBay has always been a beacon for consumers to visit the site and find whatever it is they need. eBay was one of the first successful .com companies that epitomized online shopping. The company was founded in 1995 and has had various features, including the online auction and buy-it-now. With yearly revenue of almost $11 billion in 2018, eBay is the fourth largest eCommerce company in the world. The first item that was sold on eBay was a broken laser pointer. A couple of decades later, it is on the list of the largest online retailers.
These (and other) online retailers compete for their share of the online marketplace. All are striving to come up with the next hot item or feature that will help them gain sales and customer loyalty. Each of these eCommerce companies offers opportunities to be a vendor in their marketplace space. If you are interested in starting an eCommerce business yourself, consider each once carefully. After you have established three months of sales, consider E-Commerce Seller Financing for your financial partner.