Automated Inventory management
With electronic commerce, order fulfillment, delivery, and payment procedures can be accelerated and inventory management automated with the various electronic online tools and third-party vendors such as PayPal, Stripe, Google Checkout, and Amazon Payments among others. Inventory management has become even more sophisticated as you can manage your inventory on multiple platforms like eBay or Amazon.
Frequently asked questions (FAQs)
Commerce is the activity of buying and selling goods and services. It’s how people and businesses trade products they have for ones they want or need. This can take place in physical locations, like stores, or online through websites. Commerce is important because it helps our economy grow and allows us to get the things we want.
What is an e-commerce business?
An e-commerce business is a company or enterprise that conducts commercial transactions online. This means that they sell products or services to customers through the internet, rather than through a physical storefront or other traditional channels. E-commerce businesses may operate exclusively online, or they may have a physical presence as well. Some examples of e-commerce businesses include online retailers, subscription services, digital marketplaces, and B2B companies that sell products or services to other businesses.
What is an ecommerce website?
An e-commerce website is a digital platform that facilitates online transactions between businesses and consumers. These websites typically include product catalogs, shopping carts, payment processing systems, and other features that allow customers to browse, select, and purchase products or services. E-commerce websites may be designed for a specific niche or market, such as clothing, electronics, or home goods, or they may offer a wide range of products across multiple categories. Examples of popular e-commerce websites include amazon.com, walmart.com, and target.com.
What is an ecommerce store?
Let’s dive into the top benefits of an e-commerce business
- Convenience & accessibility. E-commerce can occur 24/7; for this reason, it provides customers with the best in both convenience and accessibility. They can find what they need, when they need it, and directly from their mobile or desktop devices. This level of convenience and access translates into sales and revenue opportunity round the clock for ecommerce businesses.
- Increased selection of products. Retail brands have the flexibility to offer a wider selection of products through their online store online compared to their physical brick-and-mortar stores. Many retail brands also offer consumers access to exclusive inventory and promotional offers that aren’t available elsewhere.
- Lower start-up cost. Compared to traditional retail stores, pure-play e-commerce businesses can avoid a lot of upfront start-up costs associated with running physical stores such as rent, inventory, and in-store headcount. However, they can have warehouse costs and shipping costs.
- International or cross-border sales opportunities. As long as a customers can place an order online and the e-commerce store can capture the revenue from the sale, then ship the product or service to the customer’s location, online stores aren’t limited by geographic location as brick-and-mortar stores are. An ecommerce store allows your business to reach more customers, globally — maximizing selling potential.
- Easily retarget customers online. E-commerce stores regularly use retargeting as a way to attract and retain existing customers, or acquire new look-a-like customers. With retargeting, you can either target your existing customers, or your most profitable customers with products that are similar to the ones they love, or complement their past purchases. Retargeting is also a strategy used by online stores to recover abandoned carts.
- Scalability with lower operational costs: As the customer base grows, brick-and-mortar retail operations are forced to either relocate to a larger location or expand their physical store footprint, all of which comes with significant costs. In contrast, an e-commerce platform can be equipped to handle high traffic volume and sales spikes, enabling an e-commerce businesses to scale with increased inventory and order fulfillment.
- Delivery personalized experiences. E-commerce businesses can personalize everything from onsite search to dynamic pricing and curated product recommendations. With an AI-powered e-commerce platform, you can upsell, cross-sell, and present products that customers are most likely to be interested in, thereby increasing revenue-per-customer
- Access to new technologies: With progressive enhancements to e-commerce platforms and technologies, you can always find ways to streamline your e-commerce business operations to save time and money. In contrast, there are limitations to what technology can do to streamline physical stores. E-commerce has the upper hand in its ability to leverage technology to streamline operations, market products, improve team collaboration, and provide faster customer service.
What is social commerce? Definition, examples, stats Social commerce is the use of a social platform for e-commerce sales, and it’s huge: By 2027, it’s projected to drive $604 billion in sales.
Some of the disadvantages of an e-commerce business in comparison to a brick-and-mortar store include
- Limited interactions with customers. If customers have questions or an issue with a product they purchased, they can visit a physical store and speak directly with a store manager or customer-service rep to address their issue by returning or replacing the product. E-commerce business are can’t provide direct in-person customer service and support. Some e-commerce websites employ online chat or click-to-call features to reach a live person, but it’s not a standard practice.
- No ability to try-and-buy. Visual representation of products on e-commerce stores using images or video cannot deliver the full experience a physical store is able to provide its customers. For example, at a departmental or a footwear store you have the ability to try it and then buy it.
- Lack of instant gratification. With e-commerce, you must wait for the product to be shipped to you. While e-commerce businesses like Amazon have made significant investments to improve last-mile delivery by offering same-day delivery for some of its products, they can’t offer the instant gratification physical stores provide customers.
- Unreliable technology and security breaches. E-commerce businesses are susceptible to website crashes, or websites needing to be taken down, especially in the event of a security breach compromising personal customer data. This leads to loss of sales and revenue while the e-commerce store is down.
- Stiff competition. Due to low barrier to entry and low start-up costs, competitors can easily enter the market selling the same or competing products at lower costs, thereby cutting into your margins and revenue. As a result, e-commerce business must be hyper-diligent in their marketing strategies to remain competitive.
Subscription commerce: Models, benefits, examples inside the e-commerce box Subscription commerce surged during the pandemic and shows no signs of slowing down. Learn why it’s booming, and everything else you need to know about this business model.
Retail doesn’t rest. A recent survey of digital execs shows where e-commerce is going. Get the stats + data HERE.
You can call these e-goods, they are intangible goods which means you can’t touch these because they exist in digital form via the internet. These are things such as downloadable music like iTunes, internet radio, internet television for example NetFlix, e-books like Tai’s MentorBox, and Amazon’s Audible offers, even simple guides.
These types of products also include things like online courses like LinkedLearning offers, software like Adobe offers, or even graphics templates to use on a website or social media like Canva offers. Digital products might also come in the form of guides or eBooks.
The future of e-commerce evolution
Today, the online shopping experience not just replicates, but can sometimes exceed, the one offered by traditional brick-and-mortar shops.
Three innovations are key to e-commerce growth
- AI and machine learning made it possible to collate massive amount of data, make sense out of it and provide personalized shopping experiences. Feedback loops and dynamic adaptation to ever-changing consumer behavior enhance the whole customer experience.
- The rise of the internet enabled the emergence of social networks, which was further boosted by mobile devices. Social media is embedded in our daily activities. According to a Google report, almost 85% of the consumers begin their buying journey on one device and continue on another. That trend mandated seamless integration between online and offline sales channels.
Open for Shopping 24/7/365
Another great benefit of an online business is that it is always open. If you own an eCommerce business, this means a dramatic increase in sales opportunities and convenience for your buyers. Buyers get to enjoy unrestricted working hours, therefore, getting products and booking the services they need without being constrained by operating hours of a traditional brick-and-mortar store.
Faster Payment/ Transactions.
Ever found yourself waiting in line or pushing through crowds just to buy something? Well, that never happens on the internet, which means you shop from home and get the products you want and need without stressing yourself and being constrained by the hustle usually experienced in a traditional brick-and-mortar store.
Full steam ahead with voice commerce, AR, and blockchain
As they say, what got you here won’t get you there. E-commerce is still fairly new, yet the future holds endless opportunity. Success will depend on how an e-commerce business adapts to ever-changing buyer preferences.
This is only possible through continuous innovation. Some of the trends that will drive these innovations in the future include:
- Voice search & zero UI: With more and more households adopting voice assistants, voice commerce is on the horizon. This has created a new gateway to consumers and offers the opportunity to establish and integrate a company into the consumer’s everyday life. Contact-less designs will become a preferred channel.
- Augmented and virtual reality: In order for e-commerce to fully replace brick-and-mortar buying, the whole shopping experience needs to be more intuitive, friendly, and satisfying. This is where immersive technologies like augmented reality and virtual reality (AR/VR) — which are fueling the metaverse — will help.
Metaverse customer experience: A world of new opportunities What will the metaverse customer experience look like? Here, we explore examples and ways brands can benefit.
Amazon
Statistics show that Amazon is the largest e-commerce seller in the United States. With over €70000 spent on Amazon every minute around the world, it’s crucial to add your product listing on Amazon. This is one of the biggest online marketplaces in the world. Here is a detailed guide to listing your products on Amazon.
An e-commerce business is a business that exchanges or sell products and services over the internet. Everyone from independent freelancers to small businesses to the largest of corporations can benefit from the ability to sell their goods and services online at scale.
Following are some the most common types of e-commerce business models
Retail e-commerce is the sale of products or services through an online store directly to a consumer without an intermediary. This ecommerce delivery model is also referred to by other terms such as online retail, e-tail, electronic retail, or e-retail
Drop shipping is the sale of products that are manufactured and shipped to consumers via a third party. The key difference from the retail ecommerce delivery model is that the selling party doesn’t stock or own inventory.
These are downloadable items like templates, courses, e-books, software, or media that must be purchased for use. Whether it’s the purchase of software, tools, cloud-based products or digital assets, these represent a large percentage of ecommerce transactions.
The white label business model involves a company selling products with its own branding but manufactured by others. After a customer places an order, the ecommerce company receives the white labeled product, applies their branding and packaging, then delivers the product to the customer.
Wholesaling involves products sold in bulk. Wholesale products are usually sold to a retailer, who then sells the products to consumers.
Private labeling is a suitable approach for companies that may not have upfront capital or don’t have their own manufacturing space to produce goods. Typically, private label ecommerce businesses send their plans to a contracted manufacturer, which manufactures the product. The manufacturer, also referred to as Original Equipment Manufacturer (OEM), may also have the ability to ship directly to a customer or ship directly to the company receiving the order.
These are skills like coaching, writing, and influencer marketing, that are purchased and paid for online.
A popular D2C model, subscription services are recurring purchases of products or services on a regular basis.
Crowdfunding allows sellers to raise startup capital in order to bring their product to the market. Once enough consumers have purchased the item, it’s then created and shipped.
Generational payment methods: How Gen Z, millennials, and boomers compare How do Gen Zers, millennials, and boomers compare when it comes to generational payment methods? New data reveals intriguing insights that can help you provide smarter payment experiences.
Top e-commerce companies
E-commerce accounts for trillions of dollars in sales every year.
Today it’s almost inconceivable that a company wouldn’t be using a digital space to drive sales and bottom lines.
Here are some of the top e-commerce companies
- Launched in 1999, the Chinese company Alibaba is by far the world’s most successful e-commerce company and retailer, hosting the largest B2B (Alibaba.com), C2C (Taobao.com), and B2C (Tmall) marketplaces across the globe. Their online profits have surpassed all US retailers combined – including Walmart and Amazon – since 2015.
- Amazon is the largest e-commerce retailer in the US, and has changed the face of retail so much that a burning question for most retailers is how to beat Amazon.
- Once the top retailer in the US, Walmart has focused mightily on their online business, with great results, offering traditional retail sales, as well as grocery delivery and subscription services.
- One of the first e-commerce sites, eBay still dominates the digital market space, allowing for businesses and individuals to sell their products online.
The future of commerce: 3 trends shaping how we buy and sell With commerce constantly evolving, how can your business keep up with the latest trends and plan for the future? We’ve got you covered.
What are the types of ecommerce?
Ecommerce takes as many different forms as there are various ways to shop online channels. A few common business models that shape the world of ecommerce are:
- B2B – Businesses sell to other businesses. Often the buyer resells products to the consumer.
- C2B – Consumers sell to businesses. C2B businesses allow customers to sell to other companies.
- C2C – Consumers sell to other consumers. Businesses create online marketplaces that connect consumers.
- B2G – Businesses sell to governments or government agencies.
- C2G – Consumers sell to governments or government agencies.
- G2B – Governments or government agencies sell to businesses.
- G2C — Governments or government agencies sell to consumers.
In the early days, e-commerce was mainly driven on by the B2C model with retail as one of the early adopters. Apart from novelty, convenience played a major role in driving demand. Multiple players entered the field, intensifying the competitive landscape. Companies started to distinguish themselves through wider product selection and more innovative services.
After retail, the service sector was the next driver of e-commerce growth. There’s a wide range of services currently offered through the internet, including banking, insurance, travel and hospitality, education, media and entertainment, jobs and career sites, real estate, and broker services.
B2C e-commerce will continue to skyrocket. The global B2C e-commerce market, valued at USD 3.67 trillion in 2020, is expected to expand at a compound annual growth rate of 9.7% from 2021 to 2028. Growing digital dependency, the convenience of online shopping and a fast-growing digital population will drive growth.
B2C businesses today need an e-commerce solution with AI capabilities, which allow them to launch online stores in a flash. Plug-and- play with minimum coding and low maintenance are key requirements, along with a progressive web store optimized for mobile, tablet and desktop, which enables companies to create their own intuitive mobile apps in one click.
Work from anywhere
With an eCommerce website, all you need is a laptop and an internet connection, log in to your inventory management platform and start fulfilling orders and managing your business on the go. This is not restricted to location, in fact, some platforms like Amazon or Shopify have their own mobile apps that allow you to fulfill orders right from your smartphone or tablet.
Physical Goods
Whatever you sell physically right now, anything that can be physically touched, acquired to satisfy consumer needs and desires, you could sell online. These could be things like furniture, merchandise, apparel, or books that you would usually sell and ship to customers. If you sell physical products you’ll need to add at least one shipping option to your store.
Technical Breakdowns
First of all, you don’t have to be a tech-savvy to start an online store, in fact with sites like Shopify, Wix, BigCommerce, Site123, Strikingly you don’t need to have HTML, CSS or Javascript knowledge to fix website issues but let’s say you run into issues like a site crash, what do you do?
Well, you just contact the support team of whatever platform you are using to host your website. Wix, Shopify or BigCommerce have dedicated services to help you out if these issues arise.
Planning
This is the most important part. You start your online business by first of all deciding whether your business idea is suited for the web, what resources your business will need, your target audience, and your forecasted revenue.
WHAT IS E-COMMERCE ?
Electronic Commerce commonly known as E-commerce or e-Commerce which denotes different types of transactions involved in commercial activities. It contains both organisational as well as individual activities which include the processing and transmission of digitized data such as text, pictures, sound and video, etc.
E-commerce has developed a new environment with the help of Internet in business transactions and processing. Here information is provided direct to the consumers about the products they want to buy and the platform is set for product advertisements. It also permits negotiations, order for raw materials, settlement of financial transactions etc.
1) Communication Services :
Electronic transfer of information from buyer to seller is supported by communication services.
2) Data Management :
It is exchange and storing of data in a constant, format which enable easy exchange of information.
3) Security Mechanisms :
- Authenticates the source of information
- Guarantees the integrity and privacy of information.
E-commerce covers many services over the Internet for example, customer service, banking, billing, marketing, retailing, secure distribution of data, corporate sector purchasing and other value-added services.
Meaning and Definition of E-commerce
The term e-commerce (Electronic Commerce) refers to all types of business operations and transactions that are executed through Internet and other electronic technologies.
«E-commerce is a virtual business environment in which information moves electronically via Internet related to buying, selling, transportation of goods and services».
According to P.T. Joseph :
«E-Commerce comprises core business processes of buying and selling, goods, services and information over the internet».
According to Kalakota and Whinston :
1) Communications Perspective :
Electronic commerce is the delivery of information, products/services, or payments via telephone lines, computer networks, or any other means.
2) Business Process Perspective :
Electronic commerce is the application of technology toward the automation of business transactions and workflows.
3) Service Perspective :
Electronic commerce is a tool that addresses the desire of firms, consumers, and management to cut service costs while improving the quality of goods and increasing the speed of service delivery.
4) Online Perspective :
Electronic commerce provides the capability of buying and selling products and information on the Internet and other online services.»
Important Topics in Marketing Management :
Much of the world’s business today is carried out over digital networks that connect people and companies. Several types of e-commerce models are in use today. The major online marketing domains are given below :
1) B2C (Business to Consumer) :
In B2C model of e-commerce, businesses sell products and services to individual consumers directly. All the products and services are offered online through electronic channels in e-commerce which supplements the traditional commerce. Internet acts as an electronic channel.
i) Provides better way to deal with suppliers
ii) Provides customer service centres that are physically located
iii) Provides opportunity to return purchase item
2) B2B (Business to Business) :
Business-to Business (B2B) e-commerce model describes electronic transactions between businesses such as between manufacturer and wholesaler. The major factors in increasing the acceptance of B2B e-commerce are Internet and dependence of many business operations upon other businesses for supplying raw materials, utilities and services. It is very fast developing segment in e-commerce. Company can check and updates purchase orders, invoices, inventory and shipping status directly through the Internet.
i)Reduces cycle tine of inventory and costs.
iii) Improves supply-chain management among business partners.
iv) Eliminates manual activities and hence
3) C2C (Consumer to Consumer) :
Consumer-to-Consumer (C2C) e-commerce is a business model that facilitates the transactions of product and services between two consumers. In this e-commerce model, consumers sell product and services directly to other consumers using Internet and Web technologies. An individual customer uses classified advertisements to advertise or promote different products and services on web or through online auction sites.
e-Commerce Examples : eBay.com, quicker.com, craigslist.org, gittigidiyor.com. It entails lower cost for both buyer and seller customers. Using this e-commerce model, customers can also advertise and sell their products and services to other employees over organizational Intranet.
4) C2B (Consumer to Business) :
Consumer-to Business (C2B) is an e-commerce model where consumers (individuals) sell products and services which are consumed by businesses and organisations. This model is opposite to B2C model. In this model, price and value for specific products and services are created by individuals.
For example : when a customer writes reviews for new product or gives a useful idea for new product development then he/she is creating value for the company if the company adopts the review or idea. Company can facilitate C2B model by setting discussions forums on their
5) Business-to-Government (B2G) :
In marketing context, B2G marketing is also known as “public sector marketing». It is derived from B2B marketing and is comprised of activities such as marketing of products and services to government agencies. Such marketing is undertaken via various integrated marketing techniques like advertising, branding, managing public relations, online communication strategies, etc.
Features of E-commerce
1) Ubiquity :
E-commerce is widespread, that is, it is available everywhere always. It sets free market from being restricted to a physical space and makes it possible to shop from computer (such as desktop, laptop). The result is called a market space.
For consumers, ubiquity cuts transaction costs for exploring products in a market. Consumers can acquire any information whenever and wherever they want, regardless of their location. It is no longer necessary that buyer spend time and money for traveling to a market. In all, it saves the cognitive energy needed to transect in a market space.
2) Global Reach :
E-commerce technologies enable a business to easily reach across geographic boundaries around the earth far more conveniently and effectively as compared to traditional commerce. Globally, companies are acquiring greater profits and business results by expanding their business with e-commerce solutions. As a result, the potential market size for e-commerce merchants is approximately equal to size of online population.
3) Universal Standards :
4) Interactivity :
E-commerce technologies permits two-way communication between customer and sellers which makes it interactive. It proves as significant feature of e-commerce technology over the commercial traditional technologies of the 20th century.
5) Information Density :
Information density means total amount and quality of information available over Internet to all market buyers and sellers. Internet vastly increases information density. Information density offers better quality information to consumer and merchants. E-commerce technologies increase accuracy and timeliness of information. For example, flipkart.com store has variety of products with prices.
6) Richness :
Richness refers to the complexity and content of a message. Richness means all commercial activity and experience, conducted through a variety of messages. For example, text, pictures, videos, sound, links, SMS (Short Message Services) etc.
7) Personalisation :
Advantages of E-Commerce
The advantages/benefits of e-commerce can be divided into two categories :
A) Advantages to Customers —
1) Reduced Prices :
The products available on websites have reduced prices because the different stages of value chain are decreased between source and destination. The intermediaries such as retail store are eliminated by the company and they sell their products to consumer directly instead of distributing through intermediaries.
2) Global Marketplace :
E-commerce provides global marketplace from where consumers can purchase products according to their needs situated anywhere in the world.
According to World Trade Organization (WTO), «there are no custom duties put on products bought and traded globally electronically».
Global Marketplace also provides large collection of products and services to consumers With their prices.
3) Anytime Access :
Online businesses are open 24 hours, 7 day a week and 365 days in a year and never sleep. Consumers can do transactions and enquiry about any product/services provided by company at anytime and anywhere from globe. Consumer can purchase any product in day or night using Internet connections and computer at single click of mouse.
4) More Choices :
Online businesses provide their consumers more choices of purchasing. Before purchasing any product, consumer can study products and their features of all major brands.
5) Quicker Delivery :
E-Commerce offers consumer more options and provides quicker delivery of products and services. Some e-commerce company provides free home delivery service to their consumers.
6) Relevant Information :
E-commerce provides relevant and detailed information about products and services within seconds to its consumers. Consumer can compare products and their prices in easy manner.
B) Advantages to Businesses :
1) Low Barriers to Entries :
In today’s world, small and large firms have opportunities to start up and conduct business on the Internet. Firms entry cost to the Internet is minuscule (Very small) because they do not need the space for rent. All the business over Internet are virtual means that there is no need of large number of employees to conduct business.
3) Low-Cost Advertising :
Internet provides low cost advertisement as compared to advertisement on newspapers or television. In today’s world, Internet has become inexpensive advertising medium used by firms for commerce. The different methods of advertising are : e-mail, banners, pop-ups, steaming video and audio etc.
4) Strategic Benefit :
E-commerce enabled business have many strategic benefits because they :
a) Reduces cost of mail preparation, document preparation and data entry.
c) Lowers cost of calling over telephone.
d) Lowers delivery time and labour costs.
e) Lowers data entry and management expenses.
5) Global Reach :
E-commerce enabled business has ability to reach globally at low cost. They are able send messages world-wide at any time. Since online businesses are globally accessed so e-commerce helps to attract new consumers and business clients from anywhere in the world.
Disadvantages of E-Commerce
The disadvantages/limitations of e-commerce can be divided into two categories :
A) Technical Disadvantages —
1) Lack of Security :
Consumer needs to be confident and trust over e-commerce payment providers. Any fraud, hacking or forgery can break the trust of consumer.
2) Low Bandwidth :
In many countries, network might cause an issue because of low bandwidth.
3) Difficulty in Integrating E-Commerce :
It is difficult to integrate e-commerce software or website with the some existing applications and databases. Vendors need special web servers to, deal with integration problem in addition to network servers.
4) Not All Customers have Access to Internet :
Internet access is not universally available so much of the effort made does not actually reach the consumer. Many potential customers that are living in remote villages have not Internet access facility.
B) Non-Technical Disadvantages —
1) Initial Cost :
The initial cost to develop e-commerce web site in-house is very high. This may need high cost of hiring qualified staff to maintain and updating e-commerce web site. There are also companies have opportunities for outsourcing e-commerce to other e-commerce companies. But where and how to do outsourcing is a difficult task.
2) Security and Privacy :
The major issues in online businesses are security and privacy. Customers feel hesitant to disclose credit card numbers over Internet because of security problems such as theft of credit card number. If consumers do not have any confidence on the online business, they will refuse to purchase anything over the Internet.
Face-to-face contact and paper transactions are important in business deals and transactions since it is related to trust. So for any consumer switching from physical to online stores is difficult.
4) Lack of Touch and Feel :
Consumers may want to touch and feel a product before purchasing online. Online businesses do, not provide the touch and feel experience to consumer on items such as clothes, shoes etc.
5) Customers Relation Problems :
Organisation needs loyal customers to run their online business for long time. Online businesses cannot continue without loyal customers in today’s competition.
6) Corporate Vulnerability :
Online businesses have high availability of information related to product, price, catalogs, and others. This information makes web sites vulnerable to access by competition. This process of extracting business intelligence from competitor’s web pages is called Web farming.
7) Legal Issues :
When buyers and sellers do not know each other, there is, chance’of fraud over the Internet. Hence there are many legal problems related to e-commerce. Some common legal issues encountered in e commerce are :
b) Credit Card-Fraud and Stolen Identities
c) Illegal Bargains and Criminal Law
Alternative E-Commerce Strategies
1) Brick and Mortar :
The phrase «brick and mortar’ means a physical or tangible asset.
For example, a building, plant, storage facility, production unit, etc. Brick and mortar is one of the traditional business models which involve the use of websites just for the purpose of using it as company’s brochure. Websites here serve as a means for providing information about the company. Such companies use the traditional sales methods for generating profits. However, if the company gets a favorable market feedback, then these companies can expand further into ‘brick and click’ companies adding to their online presence.
2) Pure Click :
Unlike brick and mortar companies, pure click companies have pure online presence. Their entire marketing transaction is undertaken online. These companies are popularly known as ‘pure-plays’ or ‘dotcoms’. The various elements associated with the ‘pure click’ companies are Internet Service Providers (ISPs), commercial sites, content sites, transaction sites, enabler sites, search engines, etc. Some of the popular search engines used by pure click companies are Google, yahoo, Sify, Alta Vista, etc. These search engines also offer various services like free mailing, news, weather reports, entertainment, etc., on company’s website. Major examples of ‘pure click’ companies are Flipkart, Amazon, EBay, India times etc.
3) Brick and Click :
Companies that fall under the category of brick and click’ model have both online and offline presence. This means that their marketing and transactional activities are carried on both online as well as offline mode. They need to manage their online and offline activities and should ensure that their online sales do not affect their traditional (offline) sales. They also need to manage their channel conflicts which may arise among their intermediaries and conflicts arising in online sales. Some of the companies like Avon and Compaq launched their online sales models in such a way that it actually supported their traditional offline sales instead of disrupting it. Similarly, one of the popular store Wal-Mart introduced its subsidiary firm in January, 2000 namely Walmart.com which helped customer to access its services online offering more than a million products on internet. This retailing firm involves use of web-based technology as well as standardized retailing strategies for attracting customers.
TOP TREADING ARTICLE FOR COMMERCE STUDENTS :
What makes an ecommerce store successful?
High-quality, reliable products and ecommerce services are at the heart of successful online brands. Your product should solve an unmet customer need or challenge. You must also offer it at a compelling price point.
Product quality and pricing can make or break your ecommerce business. Do some market research to get a sense of what types of products your competitors are selling, as well as the market value of similar items.
A compelling brand story
Unique brands stand out, but a great brand takes more than a great product. To catch a customer’s attention, convey your business’s purpose and vision.
Ask yourself, why does your business need to exist? How will the products make your customers’ lives better? Your branding should convey the answers to these questions.
Spend time thinking about the look and feel of your brand. Dig deep and find a simple, powerful way to convey the origin and mission of your business.
Did you know?
A+ content helps businesses showcase their brand story and product features using rich text and images on the Amazon detail page to help drive conversion, and potentially increase traffic and sales.
A focus on the customer
Define your ideal audience to help attract loyal and enthusiastic customers. Who do you want to serve with the products? Direct your marketing efforts accordingly.
Once your business gains steam, keep the momentum going by considering who will be moved by your brand story. Instead of chasing after buyers who don’t need what you’re selling, focus your efforts on an audience that will appreciate your brand.
A smooth online experience
Amazon’s game-changing 1-Click ordering simplifies the online shopping experience, making it easier for customers to buy products. Amazon securely stores the credit card information and shipping preferences of customers. This process minimizes the number of decisions a customer must make on their path to check out.
Timely order fulfillment
Customers want speed and efficiency, especially when shopping online. No matter what you sell, customers want purchases delivered intact and on time.
Fulfillment is the process of getting products to customers. It can include sourcing products, storing and packaging orders, handling returns, and maintaining customer communication. Successful ecommerce shops pay careful attention to the fulfillment process and make sure they have enough product on hand to fulfill their orders, even during their busiest seasons.
How New Republic grew their ecommerce business with Amazon
Dee Murphy, co-founder of the fashion brand New Republic, built upon his success by bringing his brand to the Amazon store.
“When we launched on Amazon, I had expectations that Amazon would be about 10% to 20% of our total business. Within the first six months, it was 50%,” says Dee. “It just exploded. And it really changed the way I thought about the future of our business.”
The team had some help from Amazon account managers, too. “I don’t think we would’ve gotten to this point this quickly if it wasn’t for our Amazon team,” adds Dee.
Where and how does ecommerce take place?
Online shopping evolves and shifts daily. People shop from their computers, phones, tablets, and other devices. They patronize websites, visit social media pages, and participate in thriving virtual channels. Here’s an overview of three distinct methods of conducting ecommerce today.
M-commerce
Online transactions that take place on mobile devices are known as mobile commerce or “m-commerce.” With portable devices in the hands of consumers worldwide, it’s no wonder m-commerce is anticipated to account for over 43% of total retail ecommerce sales in 2023 (up almost two percent from 2022).
Many people now do their product research and online purchasing through their phones. This trend shows no signs of slowing, so it’s essential to optimize your online store for mobile.
Enterprise ecommerce
Enterprise ecommerce is the buying and selling of products to large companies or organizations. If a large business sells many different types of products or has multiple brand lines and transitions into selling online, then it is participating in enterprise ecommerce.
Social media ecommerce
Social media can help you market and promote ecommerce stores to a broad audience. Just as social media enables you to connect with friends and family, it also has the potential to attract customers to your business. Done well, social media marketing engages customers in an informal setting.
Social media can help you:
- Attract new customers
- Build brand awareness
- Generate online sales
What is E-Commerce?
E-commerce, also known as electronic commerce refers to the activity of buying and selling of goods or services using the internet.
Online Transaction processing and technologies such as mobile commerce and EFT (Electronic funds transfer) are used, which is basically the transfer of funds from one bank to another without the direct intervention of the bank.
Just like the traditional advertising of passing around brochures and Radio advertising, electronic Commerce uses Online Marketing also known as Internet advertising which is a form of marketing and advertising that uses the Internet to deliver promotional marketing messages to consumers.
In 2023, supply chain challenges can make for a wild ride. Get advice, best practices, + predictions from top experts HERE.
Now, if you review the Global eCommerce statistics, you know that means huge potential and a massive opportunity for anyone wanting to start an eCommerce business. But one might ask, besides all that, what are the core benefits of getting my business online?
Cost Saving
Besides the startup costs like purchasing a domain name and your website hosting, there is no rent or staff to hire and pay, and very little fixed operating costs. For example, websites such as Bluehost, Wix, and HostGator offer free domains if you purchase a yearly plan for website hosting from as low as 2.7 dollars per month.
Most common types of e-commerce businesses and examples of how they work
As commerce continues to evolve, so do the ways that it’s conducted.
Following are the most common types of e-commerce businesses and examples of what they mean
- Business to Consumer (B2C): B2C e-commerce is the most popular e-commerce model. Business to consumer means that the sale is taking place between a business and a consumer, like when you buy something from an online retailer.
- Business to Business (B2B): B2B e-commerce refers to a business selling a good or service to another business, like a manufacturer and wholesaler, or a wholesaler and a retailer. Business to business e-commerce isn’t consumer-facing, and usually involves products like raw materials, software, or products that are combined. Manufacturers also sell directly to retailers via B2B ecommerce.
- Consumer to Consumer (C2C): C2C e-commerce refers to the sale of a good or service to another consumer. Consumer to consumer sales take place on platforms like eBay, Etsy, and Fivver.
- Consumer to Business (C2B): Consumer to business is when an individual sells their services or products to a business organization. C2B encompasses influencers offering exposure, photographers, consultants, freelance writers, etc.
Global Market
With an online business, you are not limited to a physical geographical location as it is for a local store. Going from a local customer base to a global market at no additional cost is one of the greatest advantages eCommerce offers. E-commerce opens up the whole world as a market for your products or services.
Trust
One of the biggest issues with an online store is trust. Trust on the internet space may come in different forms but first, you need to ask yourself, do people trust the company or brand you represent? Do they trust the quality of the products you offer if you are selling physical products, and most importantly the payment method, buyers want to know that their information is secure especially if they are purchasing using Credit/Debit cards.
A review system such as Trustpilot and a secure payment solution like PayPal would be some of the few ways to go around that.
Limited interaction with Customers
With an online store, your customers don’t have to see you and you don’t need to see them for a successful online transaction to take place. This makes it difficult to collect first-hand customer concerns and data even though there are other ways to get this data for example through surveys.
Understanding your Technology needs
In a nutshell, you need space on the internet to sell your products or services, first, you need a domain name, then hosting for your website and a platform to help you design your e-commerce website also known as your virtual shopping cart. For domain names check out Namecheap and for hosting, you can look at Bluehost, Wix, HostGator, or GoDaddy.
B2B (Business to Business)
In this e-commerce model, one business provides the other with products and/or services. For example, Neil Patel’s Crazy Egg online software helps other businesses track visitor actions and the Ubbersuggest analytics tool helps other companies that want to increase their website traffic. In simple terms, with the B2B e-commerce model, both parties involved are businesses.
Fiverr
Unlike the above-mentioned marketplaces, Fiverr is an online marketplace for freelance services. A platform for freelancers to offer services to consumers/businesses/organizations worldwide. Fiverr reached a revenue of over €20 million in 2019.
Whether you are looking for a remote worker/virtual assistant or looking to make money on the internet leveraging your skills, you can use Fiverr for all kinds of services including Graphics & Design, Digital Marketing, Writing & Translation, Music & Audio Production, Video & 3D Animation among other services.
Fiverr perfect freelance services for any business
An alternative to Fiverr would be Upwork or Freelancer, while other e-commerce marketplaces and retailers include Taobao, Flipkart, Walmart, Newegg for computer hardware, and consumer electronics, and online course creation software and launching platforms like Teachable or Udemy.
How does e-commerce work?
E-commerce, or electronic commerce, is the exchange of goods and services, or the transaction of funds or data, over the internet. This process of buying and selling goods and services online typically consists of the exchange of data or currency to process a transaction involving more than one entity or individual.
The customer places the order via the online store using a web browser; the order details are then relayed to a central backend system – an e-commerce platform, which facilitates or performs several tasks, including:
- Receiving the order
- Updating stock or inventory levels and confirming if there’s sufficient stock
- Processing the payment for the order
- Confirming adequate funds were received to fulfill the order
- Notifying the customer that the order was successfully processed.
- Notifying the shipping department for the order to be shipped to the customer, or access to the service to be granted.
How B2B industries tackled COVID challenges and won Find out how B2B industries like manufacturing and high tech transformed amid the pandemic. Manufacturers had an important realization: Your buying experience should be simple, even if your products aren’t. This is a valuable takeaway for every industry.
Etsy
Over 60 million items were listed on Etsy in 2019. Etsy is an e-commerce website focused on handmade or vintage items and craft supplies. An online marketplace that’s made for Artists and other individuals with handmade items under a wide range of categories, including jewelry, bags, clothing, home décor, and furniture, toys, art, and paintings, as well as craft supplies and tools.
The type of goods you can sell through an e-commerce business
It’s plainly understood that in order to run an e-commerce business, you must have something to sell. Unlike brick-and-mortar businesses, an ecommerce store can take on a number of forms, where the economic exchange involves a variety of products and services.
Three type of goods you can sell online
- Sale of physical goods The sale of physical goods is the exchange of monetary value for the purchase of goods that are tangible and have physical mass, for example, merchandize. Physical goods include both durable (think: cars, TVs, furniture) and non-durable goods (e.g., food and beverages).
- Sale of digital goods The sale of digital goods involves the exchange of monetary value for purchase of good that are intangible and exist in digital form, such as digital media like audio files, video files, and e-books.
- Sale of services The sale of services involves the exchange of monetary value in return for value to customers that want to achieve specific outcomes. Put another way, a service is a means of delivering value to customers by facilitating specific outcomes that customers expect to achieve. Examples of a service include transportation, healthcare, and education.
What is ecommerce? Launch and grow an online sales channel
«Ecommerce» or «electronic commerce» is the trading of goods and services on the internet. It is your bustling city center or brick-and-mortar shop translated into zeroes and ones on the internet superhighway. An estimated 2.14 billion people worldwide buy goods and services online, and the number of Prime members shopping Amazon stores globally now tops 200 million.
Ecommerce is one way people buy and sell things in retail. Some companies sell products online only, while other sellers use ecommerce as a part of a broader strategy that includes physical stores and other distribution channels. Either way, ecommerce allows startups, small businesses, and large companies to sell products at scale and reach customers across the world.
An ecommerce website is your digital storefront on the internet. It facilitates the transaction between a buyer and seller. It is the virtual space where you showcase products, and online customers make selections. Your website acts as the product shelves, sales staff, and cash register of your online business channel.
Businesses might create a branded store experience on a store like Amazon, build their own commerce site on a dedicated domain, or do it all for a multi-channel approach.
What is an ecommerce business?
An ecommerce business is a company that generates revenue from selling products or services online. For example, an ecommerce company might sell software, apparel, housewares, or web design services. You can run an ecommerce business from a single website or through multiple online channels like social media and email.
How does ecommerce work?
Ecommerce works by connecting buyers and sellers using various electronic channels. For example, you need a channel, such as a website or social media, so customers can find products and services to purchase. Then a payment processor enables the exchange of the goods or services. Once the transaction succeeds, the customer receives a confirmation email or SMS, and a printable receipt.
If the transaction is for goods, then the seller ships the items and sends the customer a tracking number via email or SMS. If the transaction is for a service, then the service provider can reach out to schedule and complete the service.
Steps to starting an ecommerce business
The steps to starting an ecommerce business can vary depending on factors like what you want to sell. For example, if you’re selling services, then there’s no need to manage inventory or fulfillment. However, if you want to sell products online, then inventory and fulfillment will likely play a critical part in your operations.
- Research business ideas
- Make sure there’s demand for the products you want to sell
- Determine how you’ll sell and ship products to customers
- Find suppliers and manufacturers
- Choose which online channels you’ll sell through (e.g., an Amazon store)
- Create a website or online storefront and upload products
- Create a plan for your fulfillment strategy
- Begin attracting customers with promotions
