2020 has been a strange year for most people within the financial and business sectors, making it difficult for many business owners to move forward with confidence. Only one sector has been largely immune to the financial issues affecting the world in 2020: online retailers and service providers. As Amazon founder, Jeff Bezos becomes the world’s wealthiest person, even small business retailers are turning to online possibilities to survive and thrive.
Here are a few of the reasons why online businesses are booming today:
1. COVID-19 Lockdowns
COVID-19’s impact shook up the way work is completed in almost every office and store in the world. From China to the U.S., and virtually everywhere in between, lockdowns and self-quarantine led to sweeping changes within business operations.
Because of lockdowns, people spent more time than ever online and in front of devices. According to Forbes, in mid-January, the online sector was growing at a fast rate of over 40 percent, but this figure paled in comparison to the online retail arena following the arrival of COVID-19 in the U.S. By mid-April, the online sector had grown with year-on-year revenues up by 68 percent over the same time in 2019.
2.Online Sector’s Future Growth
Whether owning a large or small business, most companies are making the move to ecommerce because of the rising number of orders being placed in this way. The adaptability of online retail and services has helped some companies not just endure COVID, but improve overall sales.
Although stores and businesses hope and plan to reopen again in the near future, the ease and efficiency of online services and goods is here to stay. In fact, even businesses who previously only operated in person may now choose to continue with an expanded online presence when the time comes.
3. Cost Reduction
Moving to a primarily online business operation generally reduces overhead such as rent for office or building space, inventory, utilities, etc. Other reduced costs include labor, supplies, and reduced paper use.
4. Increased Customer Opportunity
Reducing costs obviously helps improve profit margins, but so does an increased consumer base. That’s precisely what happens when businesses move online as they can now reach a global market. For example, fitness studios across the country have traditionally only been able to reach people locally but now can offer online classes that can reach anyone who’s interested no matter where they live.
Online business was already increasing these past few years, but today it’s absolutely thriving. Want to see the online businesses opportunities we have available? Start here and let us know what interests you most.
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