Ecommerce Still Going Strong?

by jones115 Banned
23 replies
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Ecommerce grew 16 percent in the second quarter compared to a year ago, according to comScore. The research firm said the desktop spending figure was $49.8 billion, with mobile shopping adding another $4.7 billion in Q2 spending, a 24% increase year-over-year. It marked the fifteenth consecutive quarter of positive year-over-year growth and the eleventh consecutive quarter of double-digit growth.
Top-performing online product categories
The top-performing online product categories were: Apparel & Accessories, Digital Content & Subscriptions, Sport & Fitness, Consumer Packaged Goods and Home & Garden. Each category grew at least 19 percent vs. year ago.
Top-performing mobile product categories
Apparel & Accessories was the highest grossing m-commerce product category with more than $700 million in Q2 sales, followed by Computer Hardware and Digital Content & Subscriptions.

My question to Warriors is: how long will this growth last? Does eCommerce sitebuilding market saturating these days?
#ecommerce #market #site developing #strong
  • Profile picture of the author lastreporter
    [QUOTE=jones115;8388049 My question to Warriors is: how long will this growth last? Does eCommerce sitebuilding market saturating these days?[/QUOTE]

    Why not try it and see for yourself?

    I think with current and future Google algorithm changes killing the effectiveness of junk links and junk content, more and more will be looking to get into the world of ecommerce, or perish.
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  • Profile picture of the author wakeforce139
    I've seen the sales figures rising, but more and more the small-timers are getting tossed aside. The big boys all realize now what it is and they are investing insane amounts in their ecommerce stores. Does that mean there isn't a niche or place for you? Of course not. There are more opportunities than before but just know the big guys are in almost every space now. If you can think of a big box store in your market than assume they are entering or already in it online.

    Online shopping is still in its early teen years at best - there's a lot more growing to come. More and more people are entering the buying force that are comfortable with technology and using it as a shopping platform.
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    • Profile picture of the author lastreporter
      Originally Posted by wakeforce139 View Post

      I've seen the sales figures rising, but more and more the small-timers are getting tossed aside. The big boys all realize now what it is and they are investing insane amounts in their ecommerce stores.
      Very true. I just had a manufacturer of one of my best selling products inform me that it soon would be selling direct to consumers, but that they wouldn't necessarily sell for less than me. That remains to be seen.

      As you say, the big boys are taking over many once obscure niche markets while some small manufacturers are deciding to go direct and more or less eliminate their dealers by selling on the same platforms they do. They have seen where the sales are coming from and have decided to try it themselves This would have been unheard of a decade ago.

      In order to prosper, one has to constantly find new niches and develop new marketing strategies.
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      • Profile picture of the author tbk125
        Very true. I just had a manufacturer of one of my best selling products inform me that it soon would be selling direct to consumers, but that they wouldn't necessarily sell for less than me. That remains to be seen.

        As you say, the big boys are taking over many once obscure niche markets while some small manufacturers are deciding to go direct and more or less eliminate their dealers by selling on the same platforms they do. They have seen where the sales are coming from and have decided to try it themselves This would have been unheard of a decade ago.

        In order to prosper, one has to constantly find new niches and develop new marketing strategies.
        This isn't just a trend online, working for a medium sized regional distributor our Co-op marketing dollars from manufacturers are being eliminated and redistributed to the larger national retailers. The trend is the closest relationship possible for manufacturer and customer, just take a look at Tesla's distribution model.
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      • Profile picture of the author Importexport
        Originally Posted by lastreporter View Post

        Very true. I just had a manufacturer of one of my best selling products inform me that it soon would be selling direct to consumers, but that they wouldn't necessarily sell for less than me. That remains to be seen.

        As you say, the big boys are taking over many once obscure niche markets while some small manufacturers are deciding to go direct and more or less eliminate their dealers by selling on the same platforms they do. They have seen where the sales are coming from and have decided to try it themselves This would have been unheard of a decade ago.

        In order to prosper, one has to constantly find new niches and develop new marketing strategies.
        For quite a while I have been warning resellers that their dropship suppliers know the contact details of all of their customers.

        What lastreporter has already experienced shows the risk that dropshipping entails for resellers. If your supplier knows what your customers buy, how often, their contact details etc., how long before they will move to supply direct?

        This is a common occurrence in Agency/Rep situations also.

        The only way to avoid this is to take control of your own business by carrying inventory. The most profitable way of doing that is to import direct from the manufacturers overseas.
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        • Profile picture of the author NewParadigm
          Originally Posted by Importexport View Post

          For quite a while I have been warning resellers that their dropship suppliers know the contact details of all of their customers.

          What lastreporter has already experienced shows the risk that dropshipping entails for resellers. If your supplier knows what your customers buy, how often, their contact details etc., how long before they will move to supply direct?

          This is a common occurrence in Agency/Rep situations also.

          The only way to avoid this is to take control of your own business by carrying inventory. The most profitable way of doing that is to import direct from the manufacturers overseas.


          even retailers do that with private label products, once a branded product sells well on the shelf, out pops an identical package next to it with the store brand on it, at a cheaper price.

          the only ways you can protect yourself is try to get a written agreement from drop ship supplier in hopes to deter them. tough to do. Buy your own product through them so you are on the list so you can see if they start direct marketing to your list. As mentioned take on inventory, or if price could handle extra shipping charges, have them ship to your location, then forward on to customer
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  • Profile picture of the author Andra el
    Originally Posted by jones115 View Post

    My question to Warriors is: how long will this growth last? Does eCommerce sitebuilding market saturating these days?
    I believe for a long time, even more e-commerce will be stronger/growth than today, because people's life style would be affected by E-life style. ecommerce offers simplicity through people life, so this demand to people little by little to change their life style to e -commerce, they can buy anithing via internet.

    wish the best
    andra
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  • Profile picture of the author NewParadigm
    Ecommerce will continue to grow fast, Mcommerce will grow even faster.
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  • Profile picture of the author hamburglar
    E-commerce will continue to rise. Has there ever been a point in the last decade where it has not risen?

    New market growths and globalization will/have allowed many new entrants to come in with cheap cost.

    As New paradigm said, Mcommerce is where the fun will be next.
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  • Profile picture of the author ReferralCandy
    I think of ecommerce and m-commerce as one and the same thing. It's still people buying stuff over the internet.

    It's going to keep growing. There are only 2 billion people online at the moment. This number will continue to grow until all (or almost all) human beings are online. There are entire markets and economies growing and developing in India, China, Brazil, Africa.

    I suspect that we haven't even seen the start of what ecommerce is going to become. Soon we won't even call it ecommerce anymore- it'll just be regular commerce, as the divide between online/offline becomes almost redundant. Just speculating.
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    • Profile picture of the author ShaggyMax
      Originally Posted by ReferralCandy View Post

      I think of ecommerce and m-commerce as one and the same thing. It's still people buying stuff over the internet.

      It's going to keep growing. There are only 2 billion people online at the moment. This number will continue to grow until all (or almost all) human beings are online. There are entire markets and economies growing and developing in India, China, Brazil, Africa.

      I suspect that we haven't even seen the start of what ecommerce is going to become. Soon we won't even call it ecommerce anymore- it'll just be regular commerce, as the divide between online/offline becomes almost redundant. Just speculating.
      I share your view. Ecommerce is growing, yes, but it also has been accelerating. The pace of adapting to new available technology is a constant hustle.
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  • Profile picture of the author DROPSHIPMASTER
    It will continue to grow strong for some time to come. In terms of delivering products, it will only keep getting more efficient.
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  • Profile picture of the author perseystadium
    I think e-commerce will continue growing but it may not faster like 1-2 years ago but mobile commerce it will be popular trend in the future than now especially SME.
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  • Profile picture of the author NewParadigm
    ecommerce not going well for amazon today. It's down
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  • Profile picture of the author GGpaul
    I'm a link builder for an ecommerce site (fashion/clothing). The company is growing FAST. When I got hired we had 200 employees. Within 5 months we're at 300.
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  • Profile picture of the author OliverTrent
    I think the real things fueling the growth of eCommerce come from companies like Zappos and Amazon.

    They pretty much wash away every single fear that people have of shopping online, from fraud, to returning an item.

    It is companies that are adopting their policies to the online world that really do drive (and will continue to drive) eCommerce is it becomes more available to the world.
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  • Profile picture of the author ronrule
    eCommerce has always been the way to earn "real" money on the Internet. While affiliate marketers struggle to earn a passive income, dreaming of making a few thousand bucks a month with it, eCommerce storefront owners (who actually know what they're doing, not the ones who just import products from dropshippers and launch) are doing thousands per week in gross sales. My clients are doing anywhere from $25k to $100k weekly in a variety of industries.

    Amazon's ecommerce sales (sales which exclude Kindle, MP3's, and other digital products) still account for 60% of their overall revenue, which works out to about $48,000 per minute. So they're still making more with traditional eCommerce sales in spite of the huge surge in digital sales.

    If you really want to make money online, don't look for the next hot affiliate program or fad WSO... launch an eCommerce site.
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    • Profile picture of the author mootonandy
      Originally Posted by ronrule View Post

      eCommerce has always been the way to earn "real" money on the Internet. While affiliate marketers struggle to earn a passive income, dreaming of making a few thousand bucks a month with it, eCommerce storefront owners (who actually know what they're doing, not the ones who just import products from dropshippers and launch) are doing thousands per week in gross sales. My clients are doing anywhere from $25k to $100k weekly in a variety of industries.

      Amazon's ecommerce sales (sales which exclude Kindle, MP3's, and other digital products) still account for 60% of their overall revenue, which works out to about $48,000 per minute. So they're still making more with traditional eCommerce sales in spite of the huge surge in digital sales.

      If you really want to make money online, don't look for the next hot affiliate program or fad WSO... launch an eCommerce site.
      What is the typical start up cost of an ecommerce site? I think i'd have a seizure if I made 100k in 1 week.
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      • Profile picture of the author ronrule
        Originally Posted by mootonandy View Post

        What is the typical start up cost of an ecommerce site? I think i'd have a seizure if I made 100k in 1 week.
        It really depends on how you want to break it down ... the greater the budget, the greater the likelihood of success. You really have to disconnect yourself from the affiliate/autopilot mindset in order to make it work.

        I'm not a fan of dropshippers - at least not in the sense that most people here think of it, where you import a bunch of products from a fulfillment provider you have no relationship with and load them into a shopping cart. Those providers make more money in the monthly fees from people running eCommerce sites than they make in product sales, and the people who use dropshippers like this are usually struggling to break even.

        You need to build a brand, not just regurgitate the same products everyone else is selling on eBay and Amazon with razor-thin margins. The cost of building a website that sells a product is chump change, a few hundred bucks at best... it's promoting the site that eats up the budget.

        But if I were just getting started and didn't have any big company contacts, I would find a local person who produces something unique - maybe custom jewelry or surf boards, whatever, and strike a deal with them where I build, maintain, and market the site and they fulfill the product. Once you have an arrangement like that and fulfillment is off your plate, now you have something unique to take to the web. How much that "costs" depends on your skill level as a marketer ... if you know how to rock a search engine and social media campaign, your costs will be very low, but if you have to hire out for those services it can get expensive.

        The main mistake people make is pocketing the money they make instead of rolling it back into the business. To make $100k a week, you're probably spending $25k a week on marketing, so obviously you aren't likely to be doing that on day one. But you make it a full time effort, start small, and grow from there.
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        • Profile picture of the author Fantastic
          Originally Posted by ronrule View Post

          It really depends on how you want to break it down ... the greater the budget, the greater the likelihood of success. You really have to disconnect yourself from the affiliate/autopilot mindset in order to make it work.

          I'm not a fan of dropshippers - at least not in the sense that most people here think of it, where you import a bunch of products from a fulfillment provider you have no relationship with and load them into a shopping cart. Those providers make more money in the monthly fees from people running eCommerce sites than they make in product sales, and the people who use dropshippers like this are usually struggling to break even.

          You need to build a brand, not just regurgitate the same products everyone else is selling on eBay and Amazon with razor-thin margins. The cost of building a website that sells a product is chump change, a few hundred bucks at best... it's promoting the site that eats up the budget.

          But if I were just getting started and didn't have any big company contacts, I would find a local person who produces something unique - maybe custom jewelry or surf boards, whatever, and strike a deal with them where I build, maintain, and market the site and they fulfill the product. Once you have an arrangement like that and fulfillment is off your plate, now you have something unique to take to the web. How much that "costs" depends on your skill level as a marketer ... if you know how to rock a search engine and social media campaign, your costs will be very low, but if you have to hire out for those services it can get expensive.

          The main mistake people make is pocketing the money they make instead of rolling it back into the business. To make $100k a week, you're probably spending $25k a week on marketing, so obviously you aren't likely to be doing that on day one. But you make it a full time effort, start small, and grow from there.

          What he said. Spend money to make money. Genius answer.
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        • Profile picture of the author ReferralCandy
          Originally Posted by ronrule View Post

          It really depends on how you want to break it down ... the greater the budget, the greater the likelihood of success. You really have to disconnect yourself from the affiliate/autopilot mindset in order to make it work.

          I'm not a fan of dropshippers - at least not in the sense that most people here think of it, where you import a bunch of products from a fulfillment provider you have no relationship with and load them into a shopping cart. Those providers make more money in the monthly fees from people running eCommerce sites than they make in product sales, and the people who use dropshippers like this are usually struggling to break even.

          You need to build a brand, not just regurgitate the same products everyone else is selling on eBay and Amazon with razor-thin margins. The cost of building a website that sells a product is chump change, a few hundred bucks at best... it's promoting the site that eats up the budget.

          But if I were just getting started and didn't have any big company contacts, I would find a local person who produces something unique - maybe custom jewelry or surf boards, whatever, and strike a deal with them where I build, maintain, and market the site and they fulfill the product. Once you have an arrangement like that and fulfillment is off your plate, now you have something unique to take to the web. How much that "costs" depends on your skill level as a marketer ... if you know how to rock a search engine and social media campaign, your costs will be very low, but if you have to hire out for those services it can get expensive.

          The main mistake people make is pocketing the money they make instead of rolling it back into the business. To make $100k a week, you're probably spending $25k a week on marketing, so obviously you aren't likely to be doing that on day one. But you make it a full time effort, start small, and grow from there.
          This is precisely what I tell would-be retailers. The entire dropshipping/reselling industry strikes me as "superficial" and very fragile- you'll get easily wiped out by a wave of technology. You have no real scarcity power, and you're not particularly providing a useful service.

          I suppose people's motivations vary. But I think it's so important to have some conviction behind whatever it is you're selling. I like Seth Godin's heuristic: Will they miss you when you're gone? If not, why bother, really?
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      • Profile picture of the author Importexport
        Originally Posted by mootonandy View Post

        What is the typical start up cost of an ecommerce site? I think i'd have a seizure if I made 100k in 1 week.
        This leads me to ask a big question.

        Do people quote turnover or profit? If someone quotes total sales (turnover) that means absolutely nothing.

        There are big multinationals with multi-billion dollar turnovers, who operate at a huge loss.

        Profit is the name of the game. Turnover means work - high profit margins mean money in the bank.

        This is why I feel sorry for people who get caught up with that extremely popular business model, dropshipping. And it is why I teach small scale importing = profit.
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        • Profile picture of the author ronrule
          Originally Posted by Importexport View Post

          This leads me to ask a big question.

          Do people quote turnover or profit? If someone quotes total sales (turnover) that means absolutely nothing.
          The figures you hear in the media are always gross- you have to dig into the financials to see the net revenue, but I disagree with the notion that only the net revenue matters.

          First, it depends on how you allocate the cash. I had a company I sold in 2005 that grossed a little over $750k a year but technically never turned a profit. Was that business a "failure"? No- because out of that $750k I also paid myself a $130k a year salary, along with salaries for my staff, and rolled every extra penny back into marketing. And when it was acquired by a larger company, who already had their own offices, could absorb the company's technology requirements into their own infrastructure, and already had people on payroll to do the work MY operating costs didn't matter to them- all they cared about was the gross income because for THEM it was all profit.

          So don't get hung up on gross vs net figures, gross figures are more important. Remember even the oil companies only actually "profit" about 26 cents on a $100 barrel of oil. That sounds like a terrible deal for them, until you do the math and realize they make that 26 cents about 18 million times a day.

          And the companies that "operate at a loss" can sometimes be due to accounting requirements and the way revenue is booked. Especially with telco and internet providers or any subscription services, if you accept any kind of prepayment you can't book that revenue until after the service they paid for has been fulfilled. A company like Magicjack or nettalk that sells annual prepaid phone service can have millions of dollars sitting in the bank that they can use to run their business, but they can't actually put it on the books as income until the service has been rendered. If a million people signed up and paid them $30 today they can't put down $30 million on the books, they can only log $2.5 million per month for the next 12 months, even though there is $30 million in the bank. So what can appear to be a loss is really just deferred revenue.
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