2014 is a great year to start your online business, but before you do that you should be aware of the fact that some industries are growing faster than others. There are a few independent retailers (small businesses) that manage to grow faster than some well-established corporations.
“The bar has been lowered, and now just about anyone can jump over it. In essence, we’re seeing the democratization of e-commerce.” – Steve Case, Founder of AOL [Source: BigCommerce]
Say you want to build a small- to medium-sized online business and ride the wave of the so called “democratization of e-commerce”. Where is the best place to start? What should you sell in order to be profitable and stand up to the big box retailers?
Bigcommerce analyzed 50,000 stores (all clients that use their online platform to build e-stores) to identify the industries and markets where small businesses are growing and dominating competitors online. The company wanted to know precisely where the best e-commerce opportunities are for small business owners.
Download The FREE ROADMAP TO SUCCESS: 7 Step Marketing Plan for Small Businesses
Before we look at the results in detail — which were published in an infographic, here are the TOP 4 fast-growing industries / categories by revenue:
1. Automotive: 89% growth in revenue per store vs. 22% revenue growth from major internet retailers like AutoZone and O’Reilly
2. Jewelry & Accessories: 31% growth in revenue per store
3. Toys & Games
4. Animal & Pet Care
Online Business And E-Commerce Trends
Here’s what Steve Case, Founder of AOL has to say… Source: Venture Beat
“The dirty little secret is this first wave of e-commerce has been dominated by a handful of giants — and, up until now, they’ve crowded out many of the independent merchants. (…) The dynamic to date has been the big have gotten bigger while most others have been marginalized. The giants will continue to grow and be successful, but a big trend over the next decade will be the emergence of a network of independent merchants.”
One last thing before we dive into the numbers.
The Industries That Struggle
Stores selling books, music and movies dropped 14% last year. Big retailers also struggled due to the ferocious competition of digital products delivered from Amazon, iTunes and Netflix.
This infographic is courtesy of Bigcommerce.
What online business industry are you currently in? Did small businesses grow faster in your niche compared to corporations? Let me know in the comments below.