Reaching your potential means reaching the global market through eCommerce
By Wes | Saturday, March 13th, 2010
As business has rapidly adapted to capitalize on the infinite potential of the global marketplace, software as a service has grown from a luxury to a necessity. These aren’t platitudes, these are entrepreneurial truisms. Running a small or medium sized business today is more competitive than ever, and to maximize their market potential companies have to overcome time and geography. Online components of storefronts can often times comprise as much of a company’s cash flow as their physical space itself. And the potential they offer far surpasses the physical storefront.
Take John for example. John runs a second hand store specializing in , instruments, sporting goods, game consoles, cameras etc. He has a lot of stock so he starts posting these items on EBay. Increasingly, he finds that people are contacting him to ship some of these things across Canada or abroad through that platform. The market potential of 30,000,000 other Canadian or 300,000,000 American consumers means his potential for sales has gone from the local maximum of say 2,000,000 to an astounding 330,000,000. Of course, his market share of that potential will only be fractions but a fraction of two million is far less than a fraction of three-hundred and thirty million. Let’s say 1% of people potentially want something John is selling. And John, wanting as much control over his business as possible, starts maximizing the ecommerce potential of this own website- EBay doesn’t take a cut anymore, the middleman is eliminated. He is selling direct to a vastly larger market now.
1% of his immediate geographical market (a city or region of about 2 million residents) is 20,000 people 1% of his national market (Canada) is 300,000 people, and 1% of John’s U.S. and Canadian Market (which thanks to progressive trade laws is relatively harmonized) stands at 3,300,000 people. That’s just 1% of the population looking for the products he offers. If we consider the online component of his business could reach a global population then his potential 1% market is 60 million customers. Even a fraction of that, let’s say .5% of the population equals his potential market size (1 out of every 200 people), this means 30 million customers could potentially want one of the items he is selling. John has gone from 1% of his local market population = 20,000 potential sales to .5% of a global population = 30,000,000 potential sales.
The importance of having an online component to your company, no matter what it might be, CAN’T be under-emphasized. John’s example might be elementary, very simplified and idealized, but it demonstrates how anyone not engaging potential customers online denies themselves the opportunity to reach exponentially more consumers and thus increase their income dramatically. It doesn’t take vast amounts of capital and labor, it doesn’t take years and years of strategy and patience. It takes a relationship with a service provider who understands the online marketplace, and who can help you create the ecommerce solutions that you need to reach your potential.
There is value in every corner and crack of your company. Products, services, information, even opinion, are commodities with value. Look at your business, look at what you offer and what you can offer online. If you aren’t offering something online, you should be.
For more information about ecommerce and how it can help your company reach its potential contact Thirdi.




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