Why is eCommerce important for small businesses?

E-commerce and the importance it holds is something that everyone acknowledges nowadays. It has affected a lot of our normal daily activities without us even noticing. Businesses like Uber, Amazon, Airbnb, Netflix, and Instagram are only some of the many eCommerce businesses that we can’t imagine a normal life without. eCommerce is a flourishing field that mashed sales of over $3.5 trillion in the year 2019. Moreover, e-commerce also has given a great deal of beneficiaries for small businesses. So, without further ado, let’s look into some of the main reasons why eCommerce is so important for small businesses and how it benefits them. This is also a great thing from an economic standpoint as the flourishment of small businesses would mean a higher GDP and ultimately a higher standard of living.

A picture of constituents of ecommerce to better answer "Why is eCommerce important for small businesses?"
Why is eCommerce important for small businesses?

Raises awareness

E-commerce has allowed a great deal of small businesses to become known and popular. Which ultimately leads to familiarity with people and a higher interaction by the potential customers. Moreover, how would a client/customer get to you if they don’t even know that you exist. The eCommerce platform also helps establish trust as people will know more about you through your commerce platform. You can also take reviews from your customers online, take their suggestions and, and make improvements. Moreover, you can interact with your customer base on a more personal level knowing what they would like and offer them special offers and coupons to promote your brand or follow through with any related action

A picture of discovering to better elaborate "Why is eCommerce important for small businesses?"
Why is eCommerce important for small businesses?


This also gives the business a great way to promote new products and services that they are hoping of introducing. Which can lead to a great launch of the product/service as people will be aware that you are introducing something new. This is also what’s called digital marketing. Which, without a doubt has become the most effective way of marketing nowadays. Simply put, digital marketing refers to promoting your product/service/brand using various platforms. The platforms could be PPC advertising, online marketing, SEO, or anything that makes your product known. IF you want to know more about digital marketing, we have an article written on that “Why is digital marketing important? 2020” which explains what digital marketing is and why it’s so important.

Ecommerce levels ground between big and small businesses

Online marketing provides small and medium-sized businesses to actually compete with the big guns in the industry. As they can also perform and attract the audience through in the same manner as the big companies as this is not much capital intensive

Big businesses in the eCommerce space don’t have as much of a headstart as they do in the real world. And small businesses can also hope of competing with them in the online space. As the online space is not as capital intensive as the real world. Which takes care of the biggest barrier to small businesses to achieve the state they want. The online space being less capital intensive helps in a lot of ways. It helps people to focus more on customer service and actually innovate and make products that matter and provide actual value.

Converting people into customers

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Why is eCommerce important for small businesses?

Digital marketing actually converts people into customers. The actual result of online marketing is judged by the rate of conversion which involves SEO, PPC and much other stuff. As we discussed in the prior paragraph having an online platform raises awareness. And once they know you, you can use various techniques to get them hooked. You could offer them a 10% discount on their first purchase. And then impress them with the quality of your products and service.

Way more value then it costs

Ecommerce cost amounts to nothing when compared to the value it provides. It allows you exposure to literally anyone who has internet. People can access you 24/7 and people are way less hesitant to ask questions through these platforms. Moreover, if you have a good shipping/delivery option, you could be looking at an increase in sales. And this could be exponential depending on how you market. You should, as an eCommerce business, also have a good option of payment channels so that people feel comfortable by paying through a familiar channel. The cost-effectiveness of eCommerce can be inferred by the Gartner’s digital marketing spend report. According to which 40% of businesses said that they were able to make considerable savings just by using digital methods of marketing

Moreover, according to Google, companies using digital marketing strategies will have 2.8 times better revenue growth expectancy. Moreover, small and medium-sized businesses will also have a relatively higher chance of 3.3 times to expand their workforce and business.

eCommerce also helps to interact with people on their phones To start off, 91% of adults in the U.S.A always have their mobiles within reaching distance. Mobile phones are becoming more and more important part of daily life each passing day. And hence are a big influence on people’s purchasing decisions. So, if your eCommerce side of the business is going well, you could also consider making a phone application, which your customers can conveniently access.

Social media

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Why is eCommerce important for small businesses?

The power that social media has nowadays cannot be ignored. It is used by billions of people every day who talk, interact, like and subscribe to whatever it is they like. So, having a social media presence is also a must-have for any business that is thinking of actually promoting itself online. You then also link and promote your official eCommerce site through these platforms. But, you do need to keep posting interesting things so that they are likable to everyone. A single post if went viral can bring you lots of attention and make you literally world-famous. Moreover, you can also use social media influencers to review and rate your products and services. The influencer marketing if done properly can also bear a great level of fruit and bring you actual related traffic.

These social media platforms also promote impulse buying. You can attract people to your website by showing cool photos and offering discount offers. People might see what they like and purchase your stuff while they are just randomly scrolling down their Insta or any other such platforms. It’s just so easy nowadays

Convenience for customer

This is by far the biggest reason for the recent popularity of eCommerce. It’s just so convenient. You can shop 24/7, 365 days a week any time you want. You can go through what you like at 1 A.M in the morning and add whatever you like in your cart. And book it for a delivery whenever you feel like it. This is one of the many things of eCommerce that makes eCommerce more convenient than the usual shopping experience. Which is another reason for its increasing popularity. Moreover, many times people just don’t feel like going out but are forced to because they have to buy something. But, eCommerce deals with that problem once it for all.

Ecommerce’s future

A picture of future
Why is eCommerce important for small businesses?

Ecommerce is without a doubt growing at an overwhelmingly flourishing speed. It is estimated that by the end of 2040, 95% of purchases will be made online. But this does not mean the end of traditional retail stores as we know it. As that too comes with its shares of pros. If you want to know more in-depth what eCommerce has for the future, Shopify has a great article on that “What Is the Future of Ecommerce? 10 Insights on the Evolution of an Industry”. So do check it out if you are interested.

Some interesting eCommerce facts to keep you prepared for the online market place

  • 60% of people abandon their carts due to the expected additional costs. And e-commerce loses more than $18 billion every year due to people abandoning their carts
  • As we said discounts are highly appreciated. According to the recent stats, 54 % of the people go back and purchase the abandoned products when the price of these products drop.
  • Hoppers don’t like to commit, 23% of shoppers won’t purchase products/services if they have to create an account.
  • Poor customer service affects purchases. Around 80% of people say that they stop purchasing from companies due to their poor customer service
  • Transition between devices. Around 85% of people start their purchase on one device and complete it on another site.
  • 57% of shoppers will close your site if it takes more than three seconds for your site to load.
  • Videos play a very important part in your e-commerce store. As visual stimuli is very important. To elaborate, around organic traffic increases by 157% when there is an involvement of videos. And in a more recent survey, 80% of people say that videos were very helpful in clarifying a lot of stuff.
  • Viewing a video about a product is valued four times more than reading a review about that product
  • Social media presence also plays a big role in increasing sales for e-commerce. An average increase of 32% has been observed when social media is involved,
  • A more interesting stat further elaborating the importance of social media, If the content is visual it is 40 times more likely to get shared on social media.
  • 93.5% of global internet users have made at least one purchase online
  • 50% of people say that they will purchase something from a website’s chatbot using conversational marketing
  • The e-commerce industry is growing an average of 23% every year


To conclude there are many businesses that are closing their retail stores to shift their business completely online. This is due to the fact that, if done right, eCommerce won’t only mean more revenue but also lesser costs as well as lesser complications when it comes to things like taxation and some other technical stuff. Hopefully, this article was helpful and dealt with most of your related queries around the importance of commerce for small businesses. If you have any further questions feel free to use the comment section below. And stay tuned to ecomscoop for more interesting articles about eCommerce.