As stores see a decline in sales in-store, there is still an increase in their profits. Why? There are many people buying online instead of going in-store. There are major benefits for shoppers to buy online, which means businesses need to focus their efforts in that way. Too many companies are going into administration because they fail to change the way they sell to suit the public.
Easy for Shoppers to Compare Prices
Shoppers are watching their pennies and they want to compare prices to find the most affordable deal. The internet makes it possible for that quickly. There is no need to go between stores and hope that they remember the prices. They can pull up different windows on their browsers to compare the different items and costs associated with shopping.
Not only is it easier to compare prices, it is also easier to buy the items. Instead of waiting in long queues to buy something, customers can go to the online checkout instantly and just enter their details. Instead of feeling pressured by sales assistants to make a purchase, a customer can take time to browse, research and compare prices and take as long as she would like to make the purchase. While it takes longer to receive the item, the ability to process the order quickly and get on with their daily chores makes that wait worthwhile. Of course, depending on the product, some are available instantly through downloads, including music and eBooks.
Lower Overheads for Stores
There are now many stores focusing on online payments instead of opening more stores. While they offer something that their shoppers want, they can reduce their overheads and increase their profits. They can continue to stay in business easier without having to worry about whether they will gain enough money for rent each month. Rent is one of the biggest outgoings for any business and to reduce that would increase profits considerably.
Just one example of a company offering this is Argos. They have decided to stop offering catalogues as more people are buying online. They are taking full advantage of the internet to reduce their outgoings and keep their profits high.
The internet also opens opportunities for smaller businesses to improve their profits. They can run their business from their own home and only have to pay for shipping the items. There are a number of courier services willing to do deals, which will help to lower the amount of outgoings to improve the profits.
Easy to Market at a Lower Price
The internet is one of the best ways to market a business. The majority of people will search for a business online before looking in the phonebook or taking a walk down the high street. It is easier to find something and research into the company’s reputation. Having a good online presence and reputation is essential to continue to grow and prosper.
The internet has also made it cheaper to market your business, which reduces your outgoings. These cheaper methods are also successful. Social media marketing is now one of the most used forms of marketing by businesses, whether they create a Facebook Fan Page or a Twitter account. They quickly keep their customers or clients up to date and put a human face behind the company name, something that their customers like to see.
Some marketing options do cost money but not as much as the offline world. Placing ads on social media and through search engines could cost just a couple of pounds per day. It is possible to set up long and short campaigns and set a low budget. The big benefit is that you only pay when your ad is clicked on so you can see how effective it is.
Offer Discount Coupons Online
One type of marketing campaign is to offer discount coupons and codes. Printing these out costs money but it is possible to offer them online. These can help the business make more money as customers feel the need to spend more to use a coupon code so that they feel like they are saving money. The code could be placed somewhere on the website or there are voucher companies that the businesses can sign up to.
There are many ways that the online world will increase profits. Too many businesses fail to see all the benefits, including creating online stores and marketing through the online world. It will decrease the amount of overheads and you go in the direction that your customers are buying from, which both help to increase your profits.
Alex writes many business related articles for Real Business Rescue. Over the past year she has written topics relating to HMRC arrears, and legal information relating to company as well as a wide spread of information relating to corporate insolvency. Real Business Rescue are business insolvency experts who offer free advice and support to company directors who face financial distress.