Warren Buffett says that in 10 years the retail industry will look nothing like it does now.
“The department store is online now,” the billionaire investor said Saturday at Berkshire Hathaway‘s annual meeting in Omaha, Nebraska, as reported by Business Insider’s Bob Bryan. “I have no illusion that 10 years from now will look the same as today, and there will be a few things along the way that surprise us… The world has evolved, and it’s going to keep evolving, but the speed is increasing.”
Buffett’s partner Charlie Munger also chimed in, saying, “It would certainly be unpleasant if we were in the department store business.”
Buffett isn’t just sounding off about the demise of traditional retail — he’s been pulling his money out of the industry, as well.
His firm, Berkshire Hathaway, fired a warning signal for the entire retail industry in February when it sold off $US900 million of Walmart stock, choosing instead to invest billions in airlines.
The sale left Buffett with nearly no shares in Walmart, at a time when world’s largest retailer is investing billions in the battle to catch up to Amazon online.
In an interview with CNBC after the sale, Buffett said retail is “too tough” an investment, especially in the age of Amazon.
“I think retailing is just too tough for me, just generally,” Buffett said. “We bought a department store in 1966 and I got my head handed to me. I’ve been in various things in retailing … I bought Tesco over in the UK and got my head handed to me. Retailing is very tough, and I think the online thing is hard to figure out.”
A tsunami of store closings is about to hit the US — and it’s expected to eclipse the retail carnage of 2017
Here in Australia the Future Of Retail looks bleak for some retailers including big name stores such as Oroton and Gap that are closing down among others like Specialty Fashion Group — the company behind brands including Katies, Millers and Rivers — has been forced to close down hundreds of stores amid lean times.
However its not all doom and gloom.
Australian ecommerce retailers have a bright future ahead and the Future Of Retail looks very promising.
Growth predictions expect that the Australian ecommerce market will balloon from around $13.9 billion AUD in 2017 to $21.7 billion AUD by the end of 2022.
As Australians increasingly adopt online shopping as a part of their daily lives, the Future Of Retail eCommerce industry continues to evolve.
On the supply side, ecommerce businesses will be eagerly embracing innovation and improvements in areas like customer experience and logistics to differentiate their offerings.
From the customer’s perspective, it’s all about convenience, access to information, trust and customer service.
Whether you’re a bootstrapper or an investor with a bit of extra money to start a new enterprise, ecommerce is a great field to get into, especially today. Even as a beginner in ecommerce, the tools and resources are all laid out for you. All you need is a strong work ethic and a desire to succeed.
Worldwide, ecommerce is expected to grow by as much as 13 to 25 percent.
Projections from eMarketer are showing rapid worldwide ecommerce growth through 2018. This year is expected to peak at nearly $1.6 trillion and by the end of 2018, almost $2.5 trillion.
The stats back up the notion that the ecommerce model is a good choice for entrepreneurs that are looking to start a new company, or those that are interested in diversifying and expanding.
If you want to get into ecommerce, there has scarcely been a better time. The opportunities are growing by the day. My Profit Store’s choice of readymade trading online stores or custom build ecommerce stores lets you get into your own business fast.
The ability to earn as you sleep.
For brick-and-mortar businesses, location is of primary importance. It can make a huge difference in terms of visibility and sales. In ecommerce, you can set up a storefront with your own domain name and sell your products globally. You don’t need multiple storefronts to be seen across the entire world.
Ecommerce has a certain “passive” appeal to it, and while it is certainly possible to earn while you sleep, business owners should be looking to leverage technology at every turn to expand their businesses.
It’s easy to get up and running.
Not only have the tools for ecommerce gotten a lot better and affordable over time, there are more of them than there ever were in the past
The most challenging aspect of getting set up is product, but if you are passionate about a specific line of products — especially if they have helped you personally — it makes it much easier to walk through the process of building relationships with distributors or product sourcing. Additionally, it’s that passion that’s going to drive you to do the work you need to do to build a successful business. My Profit Storehttp://estores.businessgrowthclub.com.au/myprofitstore offers you the full package – from sourcing suppliers, setting up websites to marketing on social media and online so you don’t have to start from nothing.
Eighty percent of the web population has made a purchase online.
As you can imagine, that 80 percent is only going to grow. The key as an ecommerce business owner is to establish trust and credibility with leads and customers. From developing an attractive and easily navigable website to creating content that helps your customers, there are many different aspects to earning their trust, but if you commit to constant improvement, in time, you’ll build a loyal following.
You can sell more to customers down the line.
Practically every ecommerce business finds that reduced friction is extremely important for making more sales. Abandoned shopping carts are a prevalent problem, and you have to have a willingness to tweak and optimize your funnel to ensure maximum conversion.
Fortunately, there are some great retargeting apps and tools, such as Google AdWords Retargeting that can help with capturing customers before they’re gone for good.
Content marketing and SEO is another effective way to sell down the line. You can create relevant, value-adding content pieces for your readers, capture them as email subscribers, and then let them know about sales, discounts and promotions as you run them.
There are many great reasons to start an ecommerce business. If you’re interested in being your own boss and selling products you are passionate about, it’s something worth considering. If you want to speed up the process, you could even buy an established business instead.