With eCommerce being the busiest form of online business in 2019, many analysts have started playing the “it’s getting too busy” card, especially for sectors like fashion, accessories and other forms of physical goods. Is it actually true? Is eCommerce slowly losing its value in terms of success? Let’s analyse the matter in detail.
A (Saturated) Drop Shipping Market
If there’s one thing which is really scaring the people who are working in eCommerce is the fact that drop shippers have almost ruined their sectors. Dropshipping is an eCommerce business model which sells products from a supplier after a small branding application, without physically owning the above-mentioned product.
The main concern which many eCommerce professionals have is regarding the fact that such drop shippers are providing extremely low-quality products, leading their specific market sector to a net downfall. Although they are definitely exaggerating, some data is actually speaking clearly in regards to the quality of these products, which, ultimately, breaks a word in their favour. With this being said, it’s good to see that it has, although, been working for designer furniture companies and their luxury dining tables.
When it comes to eCommerce or any form of internet/online-related buying/selling process, advertisement is a crucial and vital part of the process. Generally done with paid ads (the ones, to reference, used on platforms like Facebook and Twitter), advertisement is something which has highly changed since the rise of eCommerce in 2012. With higher costs and maintenance, eCommerce as a whole has become something which heavily requires initial capital to properly work.
In 2019, the most expensive form of online advertisement was related to and associated with Google ads, which has driven over 34% of the entire world’s spending on paid ads.
It Really Doesn’t Fit Lead Generation Companies
eCommerce-related selling strategies have been used in a variety of lead gen-orientated companies with little to none results. One thing is selling a shirt and another is selling a complex machine. People were looking for a way to approach eCommerce-related marketing strategies to their physical products but, in reality, they were simply missing the fact that the focus, when it comes to eCommerce, is heavily related to delivering quick wins to the store itself, instead of building online authority for their products and, therefore, their leads. eCommerce procedures aren’t really sustainable for lead generation and “higher quality” products and businesses, therefore this may be the reason why it hasn’t really worked for them.