How Strategic eCommerce Operations can increase the Market Capitalization of a Micro Cap Company

By definition, a micro cap company is a company that has a market capitalization between $50 and $300 million, and may be considered riskier than a large cap stock. But, in today’s day and age, these small companies are expanding and growing funds drastically via e-commerce. 3.58 billion people worldwide have access to the internet, but over 4 billion people worldwide still do not have access. With still over half the world’s population without internet access and more coming on each and every day, there are so many prospective clients to be reached. eCommerce is one of the biggest tools that large-cap companies use to drive their market capitalization. More and more people simply use the web to purchase products instead of going out to the store, simply for convenience. Amazon is one of the leaders with eCommerce. Large companies such as Nordstrom and Target even use Amazon to sell their products, along with their company websites. The sales go through via Amazon and then process and ship via the said company site. Essentially, Amazon is “leasing” site space to these companies, thus revving up sales for these companies as they are being advertised on the Amazon site.

Now you may be asking yourself: how can my micro cap company utilize these eCommerce sites to drive our market capitalization? Below are three examples of how micro cap companies can do this:

• Place products on large websites such as Amazon and eBay to increase sales and gain brand recognition.
• Stand out from competition by providing detailed videos on company products to show usage of them.
•  Marketing is already built-in as large eCommerce sites like Amazon and eBay have hundreds of thousands of customers on the site per day.

To further elaborate on the above bullet points, according to www.statista.com, just in the US alone Amazon has 196 million unique monthly visitors as of March 2018 and eBay has 61.44 million monthly US users of the shopping app. With so many active users on each platform, any micro cap company that utilizes these eCommerce sites should see an almost instant increase in recognition, which then relays into an increase in sales. Next, with these micro cap companies providing a detailed video on their products, they are better able to stand out even further. This short, brief video is able to capture the eyes of possible customers and creates a much more personalized shopping experience compared to the same general, run-of-the-mill word description that every other product has. Lastly, the marketing for these large eCommerce sites is already built in as they market their sites and have hundreds of thousands of potential customers coming onto the site daily.