By Charlotte Carrol, Contributor
The ecommerce market continues its year-over-year climb. Growing online retail brands are turning to software for multi-channel inventory sync, accounting automation, and simplification of back-end tasks that take up their employees’ valuable time.
Summing It Up: The State of Online Retail in 2019
In 2019, anyone with internet access can enter the ecommerce world as a merchant. Many have—with the numbers to show for it. Total revenue for the ecommerce and online-auctions market reached $512.9 billion in 2019, and profit across the industry totaled $28.7 billion dollars with a profit margin of roughly 5.6%. With over 212,000 businesses in the digital retail market, employees earned a $19.6 billion in wages between 2014 and 2019.
A massive industry in its own right, ecommerce not only significantly increased spending on a national level, but pays out billions in wages, adding to the disposable incomes of millions of workers. Highly dependent on consumers’ per capita disposable incomes, ecommerce thrives when buyers do.
And the market is only expanding. From 2014 to 2019, the online-retail industry grew at an average of 12.8% annually with no signs of significant slow down. Experts predict a yearly rate of 8.7% in growth over the next five years, meaning online retailers could collectively achieve $779 billion in profit by 2024.
The Future of Online Retail
As internet access reaches near-saturation across the US and globe, internet traffic volume and the number of mobile internet connections increase, as well, enabling millions of people to enter the market as consumers each year.
Online retail has already generated billions of dollars in profit and billions more in revenue. Coupled with a likely influx of consumers with mobile internet access, the future of ecommerce is bright. Its model offers unprecedented convenience—the kind that brick-mortar-stores have struggled to replicate. With diverse product lines ranging from food to clothes to household items, online shoppers take to ecommerce hubs like Amazon, eBay, and Etsy for their broad scope of product offerings and ever-quickening shipping schemes.
[Webgility] saves us time and manpower and allows us to accurately track our sales. And the customer support is phenomenal.
—Jessica Taylor, Co-Owner, KeyBar
To differentiate themselves further, ecommerce sellers are finding increasingly creative ways to provide services for digital consumers. And as the percentage of services conducted online increase, ecommerce will continue to expand. At 25% by 2019 the volume of services offered digitally is only expected to grow over the next five years.
Since its conception in the early 2000s, online retail has made YoY gains many industries will never experience. With low barriers to entry, the competition is high. Yet its profit margins, ease of access, and relative lack of government regulations incentivize brands to take their offerings to the digital sphere. However, to last beyond launch, ecommerce sellers must be willing to time- and task-manage, balancing the demands of customer-facing, administrative, and back-end operations daily.
Time: The Cost of Doing Business
For ecommerce sellers, the cost of doing business involves not only money, but time. Business owners oversee revenue generation while juggling their ecommerce platform administration, fraud oversight, shipping fulfillment, and bookkeeping. Scaling all these activities to keep up with demand and expand operations can be so daunting that it slows down the growth of the entire company.
To negate the pains of manual operational labor, ecommerce sellers seek out ways to add automation, including multi-channel inventory sync, to their workflow so their staff can focus on the tasks that generate revenue instead of getting bogged down by data entry.
Predicting the future is impossible—especially when success depends on the whims of often fickle and unpredictable consumers. Even increased demand brings its own problems like overselling, which can kill businesses just as they’re getting off the ground. Syncing inventory across multiple channels can prevent overselling, which leads to negative customer reviews and wasted dollars spend making it right.
In such a profitable industry, high-growth sellers prepare themselves for success by investing in ecommerce inventory management software.
Webgility has offered an invaluable integration and we’re at a better place where it’s going to get even better from here—Webgility is a great product.
—Taggart Spenst, Marketing & Ecommerce Sales Manager, Club Ride Apparel
Prepping for Success with Webgility
Research shows that online-retail industry will continue to grow, businesses will continue to enter the market, and consumers will continue to have their picks from countless options for any purchase decision. To stay competitive, online retail companies will not only need to execute effective marketing campaigns and expand their product offerings, but implement new technology internally to minimize operating costs.
Retailers that sell online can scale quickly. With word-of-mouth marketing and the chance of “going viral,” high-growth brands always run the risk of overselling, mismanaging inventory, or human errors in accounting. And with online retail expanding at a break-neck pace, ecommerce sellers can expect higher order volumes as consumers increasingly turn to online shopping for food, household items, clothes, and medication over more traditional brick-and-mortar methods.
With multiple sales channels involved in many brands’ go-to-market strategies, connecting each directly with accounting platforms like QuickBooks and Netsuite leads to improved internal organization and communication, and these connections enable multi-channel inventory sync in addition to accounting automation benefits. That’s why thousands of high-growth ecommerce brands have turned to Webgility.
Webgility not only resolves the headaches, tedium, and human errors induced by back-end operations, but empowers brands with insights to optimize multichannel operations and maximize profits. By integrating all ecommerce business platforms on a single dashboard, users can access actionable analytics in real time to reduce previously invisible costs, manage inventory, and automate shipping and logistics as orders come in. What’s more, retailers who use Webgility escape the pitfalls of inevitable human errors in their bookkeeping.
Having regained time, money, and peace of mind, Webgility customers experience tangible ROI almost immediately. By preparing for growth with ecommerce automation software, ecommerce businesses can prevent back-end operational issues before they impact the bottom line. By choosing Webgility, ecommerce businesses can scale with minimal growing pains, all while saving time, focusing on their differentiators, and optimizing profit.
Ready to take your ecommerce business to the next level? Webgility is a multichannel retail management solution that empowers businesses to thrive in ecommerce by integrating their systems, automating their operations, and delivering powerful insights—so they can move faster, make better decisions, and win. Schedule a demo to learn more.