Those who take the step towards electronic commerce must wait an average of six years before they see their efforts rewarded! A time span that is longer than the merchants themselves had anticipated and is up to two times greater than in physical stores. Here’s some clarification.
According to a study conducted by Comeos, the Federation that represents trade and services in Belgium (formerly Fedis), it takes at least six years before the investment in e-commerce is recouped. In the case of a new physical store, the return on investment is generally achieved after three years, as indicated by the study based on the responses of Comeos members who were surveyed about their investments in online stores.
It is mainly the variable costs inherent to e-commerce that are underestimated: for example, to obtain a good ranking on Google, one must pay a price. The cost of service is also higher for a webshop, logistics remains a challenge, and in the clothing sector, for instance, returns can bring unexpected costs. This does not negate the fact that the growth of the e-commerce sector is indeed real, and that there is no turning back.
"With a limited investment, you can create your online store and recover your investment quite quickly. Many stores that are only active online succeed in this first stage. But once they have grown large enough, they often transition from an exclusive online presence to a brick-and-mortar store, to integrate various channels and develop a long-term vision," said Dominique Michel, managing director of Comeos.
On the other hand, established merchants are somewhat obliged to apply the multi-channel approach and integrate their online segment as well as possible into their existing structure.
Source: Digimedia.be
