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The health crisis we have experienced has shaken our consumption habits and accelerated certain trends that were already developing before the covid pandemic. Thus, we have seen local e-commerce for local businesses reach new records.
According to the consulting firm Oliver Wyman, its growth in Europe tripled in 2020. In France, e-commerce represents 13.4% of retail trade in 2021, according to a study by FEVAD.
But in contrast to this great trend, we are also seeing the emergence of the return of localism. Indeed, the tendency to “consume local” and products “made in France” has picked up again with the pandemic. Consumers are looking for local businesses and brands with production in the country. But can these two apparently opposed tendencies merge?
Fashion Made in France
According to Deloitte’s “State of the consumer tracker” report, in April 2021, 51% of French consumers want to consume more local products, even if that means paying a little more.
This desire is part of a movement of more responsible consumption, already well established, which consists in consuming less but better. The confinement and restriction of travel have led part of the population to favor neighborhood local shops (bakeries, butchers, etc.) and to rethink their way of consuming, more ecological, while in turn helping small local businesses to relaunch their activity.
According to a study conducted by Fly Research for Mastercard, 45% of respondents feel more supportive of their local community after confinement.
Towards A More Responsible And Local e-commerce
While the e-commerce boom potentially represents a threat for brands whose main objective is proximity, digital has also been an essential resource for many local businesses in order to adapt to the economic consequences of the health crisis. (time restrictions, limited capacities,..).
Likewise, the implementation of initiatives such as online orders with in-store collection (Click and Collect) has enabled small local businesses to combine local e-commerce and proximity to maintain their activity, without losing the social link with their customers.
clients. In addition, digitization has no negative impact on the values of local ecommerce (authenticity, quality, proximity, etc.). Ecommerce has the ability to improve the shopping experience and retain customers.
The use of digital technology, when it comes to strengthening local dynamics, can also participate in the implementation of local and sustainable actions. For example, in recent months, initiatives have been developed to promote local commerce.
Among these, we can for example mention the offers and promotions platform Tiendeo.fr, which provides local businesses with a complete digitalization solution to improve their visibility by allowing consumers to find stores and offers at the same time. close to home.
Conclusion: Local E-Commerce and its importance
In conclusion, we observe a strategic approach between local businesses and local commerce, both considered for a long time as totally opposed and competitive. In reality, these two trends could well be complementary, provided that their interactivity is mastered.
Thus, many local businesses are eager to enter a new era of connected commerce offering more effective services to attract and retain their customers by starting an online local online store. you can read our guide in detail on How To Start Local Online store.
FAQ: Local E-commerce For Local Businesses
What is local e-commerce?
Local e-commerce refers to online transactions conducted within a specific geographic region, typically focusing on facilitating purchases from local businesses by local consumers.
How does local e-commerce benefit local businesses?
Local e-commerce provides local businesses with a platform to reach a wider audience beyond their physical location. It enables them to tap into the growing trend of online shopping while maintaining a connection with their local customer base.
What are the advantages of local e-commerce for consumers?
Consumers benefit from local e-commerce by having access to a variety of products and services from nearby businesses conveniently through online platforms. They can enjoy quicker delivery, support local economy, and often find unique or specialized products not available through larger online retailers.
How does local e-commerce contribute to the local economy?
By supporting local businesses, local e-commerce keeps revenue circulating within the community, leading to economic growth, job creation, and overall prosperity. It helps sustain small businesses, which are often the backbone of local economies.
What challenges do local businesses face in adopting e-commerce?
Local businesses may encounter challenges such as limited technical expertise, initial investment costs, logistics management, and competition with larger online retailers. However, these challenges can often be mitigated with proper support and resources.
How can local businesses market themselves effectively through local e-commerce?
Local businesses can leverage social media, search engine optimization (SEO), local online directories, and targeted advertising to reach their local audience. They can also collaborate with other local businesses and participate in community events to increase visibility.
Are there any specific legal or regulatory considerations for local e-commerce?
Local businesses engaging in e-commerce must comply with local regulations regarding online sales, taxation, data privacy, and consumer protection. It’s essential to stay informed about any legal requirements and ensure compliance to avoid potential issues.
What role do delivery services play in local e-commerce?
Delivery services are crucial for fulfilling orders in local e-commerce. They enable businesses to offer convenient shipping options to customers and ensure timely delivery of products. Utilizing efficient delivery services can enhance the overall customer experience.
How can local e-commerce platforms support sustainability initiatives?
Local e-commerce platforms can encourage environmentally friendly practices such as promoting locally sourced products, reducing packaging waste, and optimizing delivery routes to minimize carbon emissions. By prioritizing sustainability, they contribute to the well-being of the local community and environment.
Is local e-commerce suitable for all types of businesses?
While local e-commerce can benefit many businesses, its suitability depends on factors such as the nature of products or services offered, target audience, and market dynamics. Businesses should assess their goals and capabilities to determine if local e-commerce aligns with their objectives.