Friday, January 30, 2009

The Recession and Online Commerce

A comment I hear pretty frequently is something to the tune of "I'm worried with the economy -- will this effect my online business?"

When I explain the reality of the situation, people are usually quite surprised. To give the most brief possible summary: E-Commerce is still growing! While other businesses, including brick and mortar retail stores, are faltering, e-commerce remains strong.

In 2008, the e-commerce industry on the whole did $214.4 billion in sales. That's a 7% increase when compared to 2007, meaning that e-commerce is still alive and well in today's world. So, why is this? Here are a few major reasons:
  • Saving on gas prices. Though this was far more influential when gas prices were $4.00 per gallon, people are still looking for ways to scrimp and save, and so staying at home to do your shopping can help.

  • Saving on retail costs. Unlike retail stores, you don't have an overhead! Because you don't have an overhead, you can offer lower prices. Savvy shoppers are now turning online to find better deals.

  • Generation Y -- they're growing up. Those born in the late 80s are now adults. Those born in the early 80s are not only adults now, they're starting to settle down and have families. Those in generation Y are far more computer savvy. They were raised on the internet -- and it's where they are now turning to shop.
There are, of course, many other reasons as well, but the end point is that the online industry is still blossoming. To find out how you can get your piece of the pie, and how a quality coaching company can help you in doing so, just visit

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