In December, the Americans are doing to spend 655.8 billion dollars on Christmas holiday gifts and ornaments of which 95 billion will be spent on the Internet (eMarketer). How much can we bring to Armenia out of these 95 billion dollars? If we set the right goal, then we can have both a leap in our economy and create more jobs, and change the quality.
e-Commerce – Unused opportunity of Internet retail trade
The path that I will describe here is the potential and the opportunity. Therefore, I wrote the word “can” in the title, and it can triple or even quadruple our state budget within a month because it is a passed path, tested and successful. I am talking about the Internet retail trade, especially on the eve of Christmas. This branch of the economy can break through any blockade and does not require a large advance capital.
Just to have a little smartness, teach people entrepreneurship (e.g. through television programs) and very little capital. You can also start with friends. According to the US National Retail Federation, in November-December, 2016, the Americans are going to spend 655.8 billion dollars on Christmas gifts and ornaments of which 95 billion dollars will be spent on the Internet. I could not find how much the Europeans are going to spend on Christmas gifts and ornaments this year but since their market is a little bigger that the American market, let’s assume that the Europeans will spend that much too.
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Only in the United States, 95 billion dollars will be spent on the Internet, and this means that it is no longer important to know where the product comes from. The borders here are destroyed. These numbers are growing every year, and the tendency continues.
A wonderful challenge for the Armenian youth
What is required to bring at least 5 billion of this 95 billion to Armenia? Do you imagine how many people would have a job if we had produced additional 5 billion dollars goods and deliver to the US by post mail within one month? This is a wonderful challenge for new opportunities to you – Armenian young man and Armenian entrepreneur. Here, the conditions are equal, the competition is fair, and our country with its cheap labor force has an obvious advantage.
What is necessary for the startup?
- A website – With just a few hundred dollars, you can have a simple and beginner website, for more complicated and developed websites you probably would spend 1-3 thousand dollars. Your website should definitely have an e-commerce solution. This is not a difficult thing if you know what you are doing. Your webmaster will solve this problem. It will be great if your website is a mobile-enabled commerce. This is more of a marketing question and beyond the scope of this article but mobile-enabled site is so important today to be mentioned here.
Where else can we sell our product? Better and free options
If you do not have a website but you have a product, you can also sell your product in an already well-developed big commercial websites. For example, Amazon.com has the “Sell on Amazon” section. This is a very good opportunity to sell your products there right now. The next good opportunity is the eBay. In eBay, your product is sold via auction. Thousands of individuals ensure more than one million dollars revenue through eBay. You can also sell thru Etsy.com. There are similar known websites in Russia and Europe and any country whose language you know. The sale on these websites is free. They are deducting only 2-4% when your item is sold. You make no risk you nor lose anything.
- Product – You need a product to sell through your website and delivery by post mail. Given the fact that a large number of people in our country are looking for a job, you need to stay competitive to organize fast and efficient production. Especially, if you are handling with handicraft and establish it in the regions. You will do a good job by making people stay on their land. You cannot imagine what people are buying on the eve of Christmas. Once, I saw a beautifully decorated simple spruce which was placed in the store for 90 USD. It was just for decoration.
What to produce and sell?
Choose or produce a product that is more in demand on this holiday season. Please note that you are going to deliver this product by post mail. Accordingly, choose the solutions that will have a more competitive price with the shipping cost of your product than similar products sold in the United States or Europe. Explore the American and European lifestyle and habits. Look at what they are buying, what they give as a present, how they decorate their homes on this holiday season. For example, you can start by searching on the Internet: Best Christmas Gift Ideas, or Top Selling Christmas Gifts.
What can be an obstacle? An application to the government
The incomplete operation of the PayPal system in our country may hinder this process. If our government wishes to promote a large-scale retail trade exports thru Internet, it is necessary to negotiate with PayPal in order to encourage them to fully operate in Armenia. Now, the users of PayPal in Armenia can pay by PayPal but they cannot get a payment. While the PayPal is the most popular and safest system in the world that does not require a Credit Card payment. And this dramatically increases the confidence towards the seller and increases the number of sales. But as long as PayPal is not fully operating in Armenia. you can use: a. a Russian and Georgian bank and then PayPal, or b. 2checkout.com or similar other services c. iDram.am through which you will withdraw in cash the money available on PayPal.
Summary
The title of this article is “How is it possible to double the state budget in December?” The point, of course, does not refer to this December, although in the case of activating the business zeal and mind of our nation, we can achieve great success this year in the internet trading. Now, you can tell how is it possible to double the state budget in two months with the help of several a few dozens of these types of businesses. Well … let it not be in a few dozen but several tens of thousands of youth small business initiatives for the success of small business is the health of spine of the economy. But here are a few numbers about what trade have the US private stores reported only via Internet, only through their website. Incidentally, the lion share of these goods is not produced in the US.
In the 4th quarter of 2015 (the top season of holiday shopping), Amazon.com had an income of 35.75 billion dollars. This was a 22% increase as compared to the same period in 2014. In the 4th quarter of 2015, eBay has sold product worth of 21.9 billion dollars. In the 4th quarter of 2014, Macys.com has ensured 4.15 billion dollars income via Internet sale.
This list can be very long. Which one should I write? However, it is already clear that if we start and soon have several of such online retailers in Armenia, then very quickly, only thru this competitive sector, we can double or even triple our national wealth, create numerous jobs in our country and a prosperous future for our compatriots. And as to how to make the websites engaged in small and medium-size online shopping reach the size of eBay or Amazon.com, it is already a matter of marketing and a material for a new article. Importantly to start and develop this sector in Armenia.
To have a free sale of our produced products on Amazon.com, Etsy.com, eBay.com and other similar websites, even an initial capital is not required but a science, desire, enthusiasm and business zeal. Let us pull up our arms and get to work. And to make our young people know more about it, let us organize weekly broadcast on the business over media and television and talk about these things. Young people in Yerevan, villages and regions will be motivated and the Armenian business agility will start operating.
The fulfillment of this idea over the months can turn up the backbone of the economy in Armenia. The Armenian man can do this.
ARMEN HAREYAN
