Altius Technologies - B2B Expo Melbourne

Impact of eCommerce on SMEs and Startups

The number of startups and small and medium-sized enterprises are increasing rapidly.

Thanks to eCommerce, startups are able to establish themselves and reach out to their target audience at great ease. eCommerce has helped to elevate business activities and build create active customer base. 

eCommerce is defined as purchasing and selling of products and services over the internet. Small businesses have realized the importance of eCommerce and how it offers numerous benefits.

In this blog, we will look at the benefits of eCommerce on SMEs and startups. 

Low Operational Costs

For small businesses, being able to sustain on limited finances is very important. Running online stores require less operational costs as compared to physical stores.

This is because owning a physical store means incurring building rental costs, location preferences, employees’ salary, and more.

In addition, there are many more costs to be managed, like inventory, accounts, payments, delivery, and so on.

On the other hand, online stores require less investment.

One needs to invest in a good website development team.

The cost incurred to develop a good e-store shall be compensated within few online sales. Additional costs on insurance, infrastructure, inventory management, etc., are also saved.

Increased Revenue

Online businesses do not have any geographical limitations unlike physical stores.

Hence, online businesses can target audiences from across the world. Small online businesses need not depend on the footfall and hence expand their sales accordingly.

Unlike physical stores, online stores are never closed, which means customers can purchase their products from any place at any time. This increased the sales and eventually the revenue.

Increased Customer Acquisition

Initially, businesses had to reach out to their customers, but now times have changed. Customers simply search online for the products they need, and the search engines guide them to the most suitable e-store.

Search engines play a major role in enhancing customer acquisition.

SEO efforts pay off by boosting brand awareness. Small businesses carry out marketing tactics by pushing out emails and e-messages to customers. This increases the online traffic, which is converted to a steady flow of income.

Social Media Recommendation

If you offer high-quality products, your customers will promote you. Customers share the product review and recommend products on social media sites like Facebook, Twitter, Pinterest, Instagram, and more. 

Recommendation on social media boosts the brand value and increases sales. This also motivates the online business to continue offering high-quality products and services and personalized shopping experience to its customers.

Consumer Behavior

eCommerce has helped small businesses to understand consumer behavior. Businesses are not able to study the purchase preferences of and offer similar products to the customers.

Using technology like Google Analytics and similar tools, businesses are now able to offer personalized experiences that match customer’s requirements.

This increases customer satisfaction, attracts new customers, increases sales and revenue. This also helps businesses to create efficient marketing strategies and build a long-term relationship with the customers. 

eCommerce has a greater impact on SMEs and startups, so much so that they are influencing the overall growth in the total number of startups across the world.

If you are looking for innovative eCommerce solutions for your business, book an appointment with us and our experts will offer you unique customizable solutions.

You can also meet us at the upcoming B2B Expo 2020 in Melbourne on 18 & 19 March 2020.


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