The Pandemic Economy Has Made Ecommerce More Indispensable Than Ever
If a journey of a thousand miles begins with a single step, then large orders can propel your business a hundred steps forward.
All businesses will eventually have a digital footprint. For now, 40 percent of small firms don’t have a website, and 38 percent don’t use social media, according to a 2019 survey by Visual Objects, a portfolio website. That won’t fly in a struggling economy, therefore entrepreneurs must maximize sales, traffic and referrals.
Ignoring ecommerce or social media makes survival that much harder. In April, the U.S. savings rate shot up to 33 percent, the highest level since the 1960s. But as Americans hoard cash and curb spending, startups must vie for less cash being spent. Consumer spending accounts for 70 percent of the U.S. economy.
The failure rate for small businesses is notoriously high, but it gets a bit easier when a solopreneur gets customers from ecommerce, Google, Amazon, Facebook, Instagram and other online channels, in addition to brick-and-mortar. Digital platforms diversify revenue streams and de-risk a startup, and they can increase enterprise value if a company or investor buys the venture down the road.