Virtual Enterprise saves Christmas

When I read the news that online retail is the winner for Christmas 2012

“According to research from e-commerce software company ChannelAdvisor, eBay sales were up 36.6 per cent year-on-year on Christmas Day 2012, while Amazon UK sales increased by 27.7 per cent.

On Boxing Day, eBay saw sales rise by 49.3 per cent year-on-year and Amazon recorded an increase of 44.7 per cent.”

I come to the following conclusions,

The small retailer won in 2012 with the small virtual companies in the UK wining over the larger stores. So Tesco increased by 18% and ebay sales by 36.6%.

“Tesco : Online sales increased 18 per cent driven by multichannel initiatives such as click and collect and grocery ‘drive thru’ that lets customers order online and pick up shopping from the local store at a chosen time.“

The high street has become an leisure experience centre, where buying is just one small aspect, an not the most important one. The first reason to go into the high street during Christmas was to see the lights, have some mulled wine with friends and family.

The small virtual businesses in the UK is more efficient than any physical shop.

• They don’t have fixed overheads, which those cementing their business on the high street do. The high street provide little or no flexibility for a business.  Those providing leases (pension funds and equity) want too much and base their revenue on increased property value.
• They don’t pay massive business rates which are just another tax on property and makes the high street a none starter for the majority of business.
• They don’t have to pay business electricity, gas and high insurance for a high street property.
• They don’t’ worry about security or riots which occurred in the UK a few years ago. Ebay and Amazon look after all the security.
• They have a worldwide market, which ensures you have a global reach and not just your local town.

They are on trend and therefore it’s a good time to start a business selling your products and services in 2013.  Take a look at http://virtualent.co.uk/ which is a conference for those considering or have started a virtual business.