Why Your Retail Business Really Needs E-commerce in 2025

E commerce  for Retail Businesses is necessity in 2025

While traditional retail sales saw a 21.6% decline from April 2019 to April 2020, online sales demonstrated the growing need of ecommerce with a 21.2% rise during the same period. As a retail business owner myself in the sanitation goods sector, I’ve witnessed firsthand how digital storefronts have become essential rather than optional.

The relationship between retail and ecommerce continues to evolve at an unprecedented pace. In fact, mobile shopping now accounts for 50% of all online transactions, and Canada’s ecommerce users reached 27 million people in 2022, representing 75% of the population. Considering that global ecommerce sales are projected to increase by 56% to reach 10.1 trillion CAD dollars by 2027, the message is clear: businesses without an online presence risk being left behind.

In this expert guide, I’ll walk you through why your retail business needs to embrace ecommerce in 2025, the key benefits of having your own online store, essential features your site must include, and practical steps to get started. Furthermore, with the average ecommerce website conversion rate at just 1-2%, I’ll share insights on improving your digital customer experience to maximize sales opportunities.

Why eCommerce is essential for retail in 2025

The retail landscape in 2025 bears little resemblance to that of a decade ago. Global retail ecommerce sales are projected to exceed INR 540.03 trillion by 2029, making digital presence non-negotiable for businesses hoping to remain competitive. As someone who runs a sanitation goods retail business, I’ve seen firsthand that adapting to ecommerce isn’t just about survival—it’s about thriving in a transformed marketplace.

Changing customer expectations

Today’s consumers demand experiences tailored specifically to them. According to research, 67% of consumers now expect personalized interactions while shopping, with their purchasing decisions primarily based on availability, quality, and price. Notably, availability ranks as the top online purchase driver, with 90% of women and 87% of men listing it as a crucial factor.

Shopping habits have evolved dramatically too. Consumers are increasingly using online channels for different shopping missions:

• “Spearfishing” trips (1-3 items) still dominate at 57% of online trips

• “Fill-in” trips (4-11 items) and “stock-up” trips (12+ items) have both grown by 2%

This shift creates new opportunities for brands to increase online basket size and conversion rates through ecommerce.

Decline of in-store-only models

The writing has been on the wall for in-store-only retail models. According to analysts, brick-and-mortar retailers who fail to embrace digital transformation face existential threats. Currently, there are over 500 vacant department store spaces in the U.S. alone, highlighting the struggles of traditional retail.

At the same time, consumers still value physical retail—just not in isolation. The primary function of retail stores is no longer purely transactional. Instead, stores are becoming experiential spaces where customers can interact with products before purchasing. Additionally, 82% of retailers have increased investment in experiential marketing to enhance in-store shopping.

Rise of mobile and omnichannel shopping

Mobile commerce is reshaping how consumers shop, with m-commerce sales reaching INR 185.64 trillion in 2023, accounting for 60% of global ecommerce revenue. By 2027, mobile commerce in the U.S. alone is projected to reach INR 72229.67 billion.

Moreover, the boundaries between physical and digital shopping experiences have essentially disappeared. A study found that 7 out of 10 shoppers use multiple channels in their shopping journey, making seamless omnichannel experiences crucial. Successful retailers now offer features like click-and-collect (projected to exceed INR 13019.90 billion in 2025), in-store returns for online purchases, and mobile payment options.

Consequently, retailers who adopt a unified approach to customer data and experience are seeing dramatic improvements in retention. Omnichannel retailers retain 90% more customers than single-channel stores, proving that integration is key to long-term success in the evolving retail ecosystem.

Key benefits of having your own eCommerce website

Owning your ecommerce website offers distinct advantages that third-party marketplaces simply cannot match. As a sanitation goods retailer, I’ve discovered these benefits firsthand when establishing my own online store.

Build direct customer relationships

First and foremost, your ecommerce website allows you to collect customer contact information directly. Unlike marketplaces where shoppers are their customers, website visitors become your customers. According to research, 65% of MSMEs cite customer retention as the primary advantage of having their own ecommerce site. With email addresses and phone numbers at your disposal, you can send personalized marketing promotions, announce new products, and offer exclusive discounts. This direct communication significantly improves customer retention—a critical factor since 80% of future revenue will come from just 20% of existing customers.

Control your brand experience

Beyond standard templates, your own website gives you complete control over your brand presentation. Unlike marketplace listings with character limits and logo restrictions, your site can showcase your unique identity through customized design, content, and functionality. This freedom allows you to create distinctive experiences that 91% of consumers say influences their decision to choose a brand over competitors. You can adjust layouts, add product videos, create informative blogs, and develop a consistent visual identity that customers associate specifically with your business.

Access to customer data and insights

Having your own site provides invaluable customer analytics that marketplaces typically withhold. You’ll gain visibility into demographics, traffic sources, browsing patterns, and purchase behaviors. Indeed, 91% of business leaders confirm social listening through owned channels provides critical customer insights. This data helps identify which marketing channels deliver profitable customers and where potential buyers abandon their journey—insights you can use to optimize your site, increase conversions, and improve product offerings.

Higher profit margins vs marketplaces

Particularly compelling is the financial advantage of operating your own ecommerce store. When selling through your website, you:

• Keep 100% of profits (minus payment processing fees)

• Control your pricing strategy without marketplace constraints

• Implement upselling and cross-selling techniques freely

• Avoid sudden policy changes affecting your fees

Clients switching from marketplaces to owned platforms have seen profit margin improvements of up to 15%. This substantial difference comes primarily from eliminating marketplace commission fees while maintaining full control over your product catalog.

What your retail eCommerce site must include

Creating an effective ecommerce website requires specific elements that enhance user experience and drive conversions. Based on my experience with a sanitation goods retail business, I’ve identified five must-have features for any retail ecommerce site in 2025.

Mobile-friendly design

Currently, about 75% of customers buy goods through their phones to save time. With mobile shopping accounting for almost 42% of sales in the U.S. in 2022, a responsive design that adapts to different screen sizes is non-negotiable. Studies show that almost 70% of the world’s population now own a mobile phone, and by 2025, more than 10% of all ecommerce sales will happen through mobile devices. Above all, slow loading times can drastically impact your conversion rates—just a one-second delay in mobile load times decreases conversions by up to 20%.

Secure checkout and payment options

A secure checkout is the backbone of your ecommerce business. It protects sensitive information through encryption, essentially converting customer data into unreadable code. Customers expect multiple payment options—hence, incorporating services like PayPal, Apple Pay, and credit cards increases completion rates. Altogether, 25% of shoppers abandon carts because they don’t trust sites with their credit card information.

Clear product images and descriptions

Product images should be large enough for users to see details that differentiate items from similar products. Ideally, include:

• Multiple angles of each product

• Contextual photos showing the product in use

• Zoom functionality (requiring at least 800x800px images)

Despite limited space, mobile product images occupy a substantial portion of users’ screens, making their quality critical for conversions.

Customer reviews and social proof

Remarkably, 91% of people read reviews, and 84% trust them as much as personal recommendations. Products are 270% more likely to sell with as few as five reviews. Meanwhile, 82% of those who read reviews specifically seek out negative ones, as users spend five times longer on sites when interacting with negative reviews.

Flexible shipping and return policies

Finally, clear shipping and return information significantly increases customer confidence. Displaying shipping methods, costs, and delivery timeframes reduces cart abandonment. Likewise, offering multiple carrier choices and delivery speeds gives customers flexibility based on their needs.

How to get started with eCommerce for your retail store

Taking the plunge into ecommerce requires careful planning and strategic decision-making. As someone who runs a sanitation goods retail business, I understand firsthand that setting up an online store involves more than just creating a website—it’s about building a complete digital extension of your physical store.

Choose the right platform (Shopify, WooCommerce, etc.)

Initially, selecting the appropriate ecommerce platform is crucial as it forms the foundation of your online presence. Popular options include:

• Shopify: All-in-one solution starting at INR 1,499 per month, ideal for beginners with built-in payment processing

• BigCommerce: Excellent for scaling businesses with zero additional transaction fees

• WooCommerce: Flexible WordPress plugin perfect for small to medium-sized businesses

• Adobe Commerce Cloud: Enterprise-level solution for larger operations

Prior to choosing, evaluate each platform based on your technical expertise, budget constraints, and future growth plans. Remember that some platforms charge additional fees if you don’t use their native payment processors—Shopify recently increased this fee by 33%.

Set a realistic budget

Overall, starting an ecommerce business costs significantly more than just platform fees. First-year entrepreneurs typically allocate their budget as follows:

• 31.6% on product costs

• 18.8% on team expenses

• 11% on operating costs

• 10.3% on marketing

Domain registration (INR 84-1,265 annually) and hosting (INR 253-3,375 monthly) are basic necessities. Subsequently, factor in design costs, payment processing fees (typically 2-3.5%), and inventory management software to avoid unexpected expenses.

Plan logistics and inventory management

Afterward, establishing efficient logistics systems becomes essential. To begin with, decide between:

• Self-fulfillment from your physical store

• Third-party logistics (3PL) partnerships

• Dropshipping arrangements

Implementing real-time inventory management software that integrates with your ecommerce platform helps prevent stockouts and overstock situations. For example, tools like Stocky and ShipHero provide up-to-date inventory levels that sync across all sales channels.

Integrate marketing tools from the start

Coupled with your platform choice, consider which marketing tools you’ll need from day one. Email marketing, social media management, and analytics tools should be incorporated immediately to start building customer relationships. Successful businesses experiment with different marketing strategies to understand what works best for their audience. To clarify, integrating these tools early allows you to collect valuable customer data from your very first sale, creating opportunities for personalized marketing as your business grows.

Conclusion

E-commerce has fundamentally transformed retail businesses forever. My journey as a sanitation goods retailer clearly demonstrates how digital storefronts have evolved from optional luxuries to absolute necessities. The statistics speak volumes—traditional retail declined by 21.6% while online sales surged by 21.2% during the same period. Therefore, businesses without an online presence face significant risks in today’s digital marketplace.

Undoubtedly, consumer behaviors have shifted dramatically. Most compelling evidence shows that 75% of Canada’s population now shops online, with mobile transactions accounting for half of all e-commerce activity. Additionally, shoppers expect seamless experiences across multiple channels, making an omnichannel approach essential rather than optional for modern retailers.

Building your own e-commerce website offers significant advantages over relying solely on third-party marketplaces. First, you establish direct customer relationships, collecting valuable contact information for future marketing efforts. Second, you maintain complete control over your brand experience without marketplace restrictions. Third, you gain access to critical customer data that marketplaces typically withhold. Last but certainly not least, you enjoy higher profit margins—up to 15% more compared to marketplace selling.

Nevertheless, success requires more than just having an online store. Your e-commerce site must include mobile-friendly design, secure checkout options, high-quality product images, customer reviews, and flexible shipping policies. These elements create trust and enhance the customer experience, ultimately driving conversions and sales.

Getting started might seem overwhelming at first. However, with careful platform selection, realistic budgeting, effective logistics planning, and integrated marketing tools, you can build a successful online extension of your physical store. After all, my own experience in the sanitation goods sector has proven that e-commerce isn’t just about survival—it’s about thriving in an increasingly digital retail landscape.

The future of retail belongs to businesses that embrace both physical and digital channels. Consequently, investing in e-commerce today positions your retail business for success tomorrow. The question is no longer whether your retail business needs e-commerce in 2025—it’s how quickly you can implement it to stay ahead of the competition.