Online Sales Supporting Local Shops
Online shopping is no longer a trend or fad. As a matter of fact, shopping online is now the preferred way most Americans tend to spend their money. However, with rising inflation rates, lagging supply chain issues and a lack of employees in the workforce, talent pool; new, direct-to-consumer retailers, and ecommerce startups are gaining popularity with shoppers -including locally.
“Brick and mortar places are becoming a thing of the past,” said Brendan Halbohm, owner and proprietor of All American Maker, which is in the Chautauqua Mall. “Eighty percent of all my sales are from online orders, and it’s been that way for a few years now. Foot traffic only accounts for 20% of my sales and that is mainly during the Christmas season only.”
Additionally, online shopping is showing no signs of slowing down- but instead is gaining momentum as the trend has reached pre-pandemic levels and is expected to continue upwards growth.
Ecommerce sales are settling back into their pre-pandemic tracks, with the growth of online sales estimated at 9.3% in 2023, amounting to $1.137 trillion. This is an 8.6% growth rate from 2022, when online sales reached $1.040 trillion. In 2024, it is estimated that this year’s growth will be approximately 10.5% of growth from the previous year.
Echoing Halbohm’s statement, Ernie Laemmerhirt, the owner of Gamerz Haven, located at 707 Fairmount Ave, West Ellicott, said in an Aug. 17, Post-Journal article, “We do most of our sales online anyways – about three-quarters of it.”
Gamerz Haven buys, sells and trades used video game systems, games, cartridges, CDs, DVDs, comic books, action figures, board and card games.
According to statista.com, following a Sept. 2024, random survey of 10,109 shoppers, the following shopping data was reported – 43% shop online for clothing, 33% shop online for shoes, 26% shop online for food, beverages or related delivery services, 24% shop online for cosmetic and body care products online, 22% pet products and 21 % shop online for books, movies, music and games (excluding downloads.)
The President and CEO of the Chautauqua Chamber of Commerce Daniel Heitzenrater said, “It is important for our local retailers — our mom and pop shops — to have an online presence, to catch those online sales. Online shopping is just part of the way we conduct business now.”
However, it’s not just local shops that are moving or have moved to an online modus operandi – big corporate stores and franchises have made the transitions to online ago. Everything from gym memberships, book ordering, cruise ship vacations, hotel rentals and buying a car can all be done online with little or no sales representative interactions.
The top 10 retail online shopping sites in the U.S. by total sales volume and website usage includes: Amazon.com, eBay.com, Walmart.com, Etsy.com, Target.com, BestBuy.com, Costco.com, HomeDepot.com, Macys.com and Craigslist.org – etailboss.com
“I don’t know how any business can stay afloat without having an online presence,” said Halbohm. “The landscape of how small businesses make sales has changed for good.”