E-Commerce Popularity Creates More Avenues for Wealth-Building Opportunities

E-commerce has skyrocketed to new heights within the last few years. With more people turning to convenient online shopping, it’s clear that online businesses, marketplaces, and e-commerce platforms are here to stay. 

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The rise of the e-commerce industry also comes with the potential for wealth-building opportunities. More people diversifying their income sources can find income-earning opportunities through e-commerce ventures like owning their online store. If you’re interested in dipping your toes into the world of e-commerce, here’s what you should know about the industry’s growing popularity. 

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E-Commerce Popularity and Growth

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E-commerce goes back as far as the late ‘70s to early ‘80s, but it wasn’t until the COVID-19 pandemic did we see it boom. After global lockdowns shut down non-essential businesses and limited operations for brick-and-mortar stores, more people saw the value in e-commerce as an alternative to traditional shopping. 

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With just a few clicks, consumers could easily find and deliver what they needed to their doorstep. There was a reduced need to go out and expose oneself to the risk of contracting the virus. And with the change in consumer demands, more businesses shifted their attention to e-commerce. 

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Today, e-commerce popularity is at its peak as more people look towards benefitting from the change in consumer behavior. In 2012, e-commerce sales in the United States reached $231 billion; in 2022, it was roughly $1.03 trillion. Globally, e-commerce sales were estimated to be at $5.7 trillion in 2022; by 2026, it’s expected to grow to $8.1 trillion. 

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Unsurprisingly, more people are entering this lucrative industry to create cash-flowing assets. While the pandemic is one of the critical reasons for significant e-commerce growth, it’s unlikely that that growth will stop. The wheels are already in motion, which means that e-commerce still has plenty of room for growth for those searching for wealth-building opportunities. 

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Ryan Carroll on reaching your financial goals with e-commerce. Morning Blend Las Vegas.

Why Is E-Commerce Still Growing?

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Several factors contributed to e-commerce growth in the last few years. These include: 

Growth and Innovation in E-Commerce Sectors

The e-commerce industry includes various sectors that handle the different aspects of online shopping. These have made online shopping safer, more convenient for consumers, and a serious alternative to traditional brick-and-mortar stores.

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Some of the key players in e-commerce include:

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• Sellers: Business-to-business (B2B) and business-to-consumer (B2C) sellers responsible for selling products to their target audience. These can also include drop shippers, resellers, and those who opt for the services of third-party fulfillment companies. 

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• Payment Services: Payment processing platforms that partner with sellers to give consumers several options to pay for their purchases. They’re responsible for ensuring payments are encrypted with a standard level of security to reduce the risks associated with online shopping.
  
  
• Marketplaces: These e-commerce platforms connect sellers to consumers. They serve as a go-to website that consumers can visit when they can’t find convenient or cost-effective products outside the marketplace. 

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• Software Providers: Software-as-a-service (SaaS) providers that help sellers manage their e-commerce business through data and analytics tools, online marketing, online store development, and other cloud-based functions.
   
• Logistics and Delivery: The couriers handle and deliver online purchases to consumers. These also include pick-up points, an alternative for consumers who prefer to pick up their packages at key locations. 

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Consumer Behavior Has Permanently Shifted

Because of the innovation, opportunities, and adaptability to consumer behavior, e-commerce has permanently changed how people shop. This year, online purchases are expected to make up a fifth of all retail purchases and make $6.3 trillion. By 2026, it could take roughly a quarter of the market’s share and reach $8.1 trillion, Insider Intelligence reports.

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This means that, even as the COVID pandemic has passed its peak, its effects on consumer behavior are unlikely to go with it. 

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New Technologies Providing More Opportunities

Technology has made customer fulfillment more efficient with more e-wallets, safer digital payment options, and better supply chain management from all industry sectors. Sellers and third-party logistics providers could fulfill orders faster, with reduced errors and convenient returns solutions. 

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Social media platforms have also evolved to integrate e-commerce into their functionality. On Facebook, Facebook Marketplace offers an all-in-one platform that allows users to find what they need without going to other marketplace sites. Instagram provides businesses with shopping tabs where users can shop or visit the company’s website with one tap. And on TikTok, businesses and influencers can use product tags to quickly check out featured products without leaving the app.

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Increased Consumer Options on a Global Scale

Many people have had the experience of visiting a store branch and finding an item sold out or unavailable in that particular store. Through online shopping, consumers can look at national and even international options when they can’t find a local business with what they need. Paypal found that 57% of consumers shop internationally, which provides plenty of opportunities for companies that offer local and international shipping options. 

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Online businesses also provide more options in terms of inventory, discounts and promotions, pricing, and more. The lower overhead costs of managing an online store mean better operational costs and flexibility to provide better options for consumers. 

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Trends That Boost E-Commerce Popularity

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E-commerce popularity has led to several trends that have increased engagement and sales. Here are some ways online businesses can grow their reach and build their brand. 

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• Digital Marketing: While e-commerce has opened doors for more customers, it has also affected competition. Online businesses need a digital marketing plan to improve their online visibility.
  
  
• Mobile-Friendly Websites: More people are accessing the internet through mobile devices, while many businesses are creating apps where consumers can find better deals. It’s expected that 75% of all users will access the internet through mobile devices exclusively, according to the World Advertising Research Center.
  
  
• Personalized Options:  E-commerce continues growing as ads and recommended products can now be tailored personally to users' preferences. This makes marketing much more effective by providing unique shopping experiences.
  
  
• Flexible Payments: Convenience is the strongest reason users rely on online shopping over brick-and-mortar stores. Online businesses cater to different payment methods, such as credit or debit cards, e-wallets, crypto, or bank transactions.
  
  

Benefits of Exploring E-Commerce Assets

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E-commerce popularity has benefited all sectors of the industry. Thus, there are plenty of reasons why those looking for diversified cash-flow sources are considering e-commerce stores as an option:

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• Tap Into the B2B Market: While B2C offers plenty of opportunities, you can also tap into various sectors that are part of the growing B2B section. The global B2B market, though with a smaller pool, is six times bigger than the B2C market, with a value of $12.2 trillion in 2019.
  
  
• Steady Growth: Compared to the volatile nature of other cash-flowing assets, an online store has the growth potential that’s highly likely to weather out negative factors when managed properly. Working with the right team to manage your online store can produce profitable results.
  
  
• Cost-Effective: Compared to the operational costs of brick-and-mortar stores, online stores have lower overhead costs. This allows you to maximize their profits and reach a broader target audience. 

• Measurable: Compared to physical stores, nearly everything about online stores can be measured and turned into valuable data. From customers’ purchase cycle to which point potential customers tend to abandon their carts, these data points provide you with insight to make essential decisions. 

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How Can You Explore Wealth-Building Opportunities Through E-Commerce?

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Those who want to profit in a lucrative e-commerce business have a couple of options. These include:

• Starting an E-Commerce Business: You can build your business from the ground up. This allows business owners to create their own brand, but they must handle all the necessary documentation, marketing, and funding associated with starting an online business.
  
  
• Buying an Existing E-Commerce Business: Instead of starting from scratch, you can opt to find online business owners selling their business or work with an e-commerce management company to handle some or all of the operations. 

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Turn E-Commerce Stores Into Modern-Day Assets with Wealth Assistants

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With e-commerce booming and providing plenty of opportunities, a successful online business can be considered a lucrative cash-flowing asset. However, you’ll need the experience and business acumen to keep your online store going. 

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At Wealth Assistants, we help our clients acquire, build, scale, and maintain their e-commerce businesses and handle most of the work for you. Let our professional team maximize your assets through stellar sales numbers and better online visibility. Just see what our clients are saying!

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"I highly recommend Wealth Assistants for their exceptional services in creating and managing our automated Amazon business for my family. For the past year, they have consistently impressed us with their professionalism, expertise, and commitment to our success. Their knowledge, comprehensive approach, advanced automation strategies, and constant communication have resulted in a profitable additional income source for our family. We are grateful for the transformative impact Wealth Assistants has had on our lives and look forward to continuing our partnership with them in the future." -Ashley M., Trustpilot Review

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Add an e-commerce store to your portfolio! Book a call with Wealth Assistants to learn more.