One thing is certain in recent years: electronic commerce has prevailed over the traditional buying and selling method. Users and customers have preferred to purchase their products and services from the comfort of their home or workplace, without having to visit a physical location, which is why small and medium-sized companies are investing in functional e-commerce platforms, in addition to improving your payment and cash flow management.
On our portal, we have talked on several occasions about e-commerce, we explain “Developing an e-commerce platform can help your organization regardless of its size and the industry to which it belongs. Creating a virtual store will allow you to manage personalized content and an unlimited number of products and promote a personalized customer experience.”
Small and medium-sized businesses play a vital role in the economy of any country; many of them are already turning to online sales platforms to sell their items or services to global customers.
In research by Statista, they found that “Small and medium-sized businesses in Oceania are more likely to receive online orders than in other parts of the world. In Australia, more than 63 percent of small businesses (ten to 49 employees) sold their goods or services over the internet in 2021. Adoption of e-commerce as a sales channel by small businesses was lowest in Turkey, with less than 12 percent, among all the countries shown in this graph. Small businesses in Israel and Portugal also lagged behind in the digitalization of sales.”
Electronic commerce has opened new horizons for SMEs. The ability to reach a global customer base and operate 24/7 has leveled the playing field, allowing smaller companies to compete with industry giants. However, this increased potential comes with its own set of challenges, with payments and cash flow management topping the list.
Efficient payment management is the lifeblood of any eCommerce business. Below are some strategies to manage payments effectively:
Cash flow is the life force of your business and managing it effectively is crucial for long-term sustainability. Here's how to maintain healthy cash flow:
SME banking for e-commerce is a critical component of successfully running an online business. The right banking partner, efficient payment management and solid cash flow practices are essential for the growth and sustainability of your business. By prioritizing these aspects and staying on top of the ever-evolving e-commerce landscape, your SME can thrive in the digital age.