{"id":9243,"date":"2019-09-16T16:19:03","date_gmt":"2019-09-16T23:19:03","guid":{"rendered":"https:\/\/www.hollingsworthllc.com\/?p=9243"},"modified":"2020-01-07T18:03:04","modified_gmt":"2020-01-08T02:03:04","slug":"how-to-start-a-digitally-native-business","status":"publish","type":"post","link":"https:\/\/www.hollingsworthllc.com\/how-to-start-a-digitally-native-business\/","title":{"rendered":"How to Start a Digitally Native Business"},"content":{"rendered":"

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Selling online has a few clear advantages over selling products from a brick-and-mortar store. First, online retailers reduce overhead costs, which can include rent, utilities, and labor costs.<\/p>\r\n

\r\n\r\nSecond, the popularity of online sales is quickly growing. In 2018, online retail sales jumped 15% year over year<\/a>, compared to a 4.1% increase for all retail sales, including online.<\/p>\r\n

\r\n\r\nBut avoiding traditional brick-and-mortar costs during the early stages of business and taking advantage of the quickly growing e-commerce industry are just a few reasons digitally native businesses have thrived.<\/p>\r\n

\r\n\r\nDigitally native businesses (DNBs) are a hot market segment that, according to Digital Commerce 360<\/a>, already makes up nearly 2% of all e-commerce sales. DNBs are also growing three times faster than traditional online sellers. With new digitally native businesses popping up, expect the market share to continue to increase.<\/p>\r\n

\r\n\r\nSo, how do you take advantage of this trend and start a digitally native business? Unfortunately, doing so isn’t easy. However, with proper planning and execution, your digitally native business could be the next big thing.<\/p>\r\n

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What Is a Digitally Native Business?<\/h2>\r\n

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The term “digital native<\/a>” was first used to describe people who grew up using computers, the internet, and other forms of technology. These individuals have never known a world without modern tech.<\/p>\r\n

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Following this logic, digitally native businesses, also known as digitally native brands, are businesses that were born online and conduct most or all of their sales digitally.<\/p>\r\n

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But digitally native businesses don’t just conduct sales digitally. DNBs utilize digital marketing strategies, from paid advertising to clever social media posting, to reach their target market.<\/p>\r\n

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Examples of Digitally Native Businesses<\/h2>\r\n

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Warby Parker<\/a><\/h3>\r\n

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Despite its young age, Warby Parker has around 100 physical locations<\/a> across North America \u2014 hardly the look of a digitally native business. However, these locations popped up due to overwhelming online demand to see the products in person.<\/p>\r\n

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When Warby Parker was founded in 2010, the goal was to create affordable glasses by cutting out the middleman, i.e., the big brands and stores. Warby Parker’s founders realized they could do so by hosting sales online, connecting the glasses manufacturer directly to the buyer.<\/p>\r\n

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Betabrand<\/a><\/h3>\r\n

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Betabrand has embraced the digital world unlike any other brand. Along with providing clothing directly from the manufacturer to the shopper, Betabrand leverages buyer interest through crowdfunding. If a product receives enough crowdfunding, Betabrand turns them into official products.<\/p>\r\n

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Rothy’s<\/a><\/h3>\r\n

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Some DNBs combine tight supply chains with an actionable cause. Rothy’s, an online shoe manufacturer, started by creating flats that were made from recycled water bottles. Nearly 36,000,000 water bottles later, Rothy’s continues to source recycled materials to create their one-of-a-kind shoes.<\/p>\r\n

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[Related: <\/strong>Drop Shipping Versus 3PL<\/strong><\/a>]<\/strong><\/p>\r\n

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Pros and Cons of a Digitally Native Business<\/h2>\r\n

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