In short, e-commerce is simply the process of buying and selling agricultural products through electronic means such as mobile applications and the Internet. E-commerce refers to online retail and electronic transactions. In the past few decades, the popularity of e-commerce has increased dramatically, and to some extent, it is replacing traditional physical stores.
E-commerce allows you to buy and sell products world scale 24 hours a day, will not have the same overhead of running the store . In order to get the best marketing mix and the best conversion rate, e-commerce companies should also have physical presence; this is a better known as click and mortar store.
While most people think of e-commerce business-to-consumer (B2C), but there are many other types of e-business e-commerce . These include online auction sites, online banking, online ticketing and booking, as well as business to business (B2B) transactions. Recently, e-commerce sales growth has expanded the use of mobile devices , commonly referred to as “mobile commerce”, only a subset of e-commerce.
Why has e-commerce exploded in the past decade? As the Internet is deeply rooted in our daily lives, accepting e-commerce continues to grow, companies are taking advantage of this.
In the early 2000s, many people were skeptical about handing over their card details to online retailers. However, e-commerce transactions are now second nature. SSL certificates , encryption and reliable external payment systems such as Paypal, Worldpay and Skrill help to increase confidence in e-commerce.
What are the benefits of e-commerce?
Starting an e-commerce business has never been easier. Solutions such as Shopify or WooCommerce can build stores even for those who don’t know the technology.
The days of hiring designers and work are gone for Web developers. Getting your e-commerce company started is a must.
Today, design templates and the WYSIWYG system enable people to launch e-commerce stores in minutes.
Therefore, people are harvesting all the benefits offered by e-commerce stores.
Here are seven reasons why e-commerce is so attractive to entrepreneurs:
Global Business – With physical physical stores, you are geographically limited to nearby markets, ie if you have a store in New York and want to sell in New Jersey, you need to open another physical location.
E-commerce does not have this limitation. Instead, you can sell products to anyone in the world through your digital e-commerce business.
Open forever – Entity merchants typically have limited hours of operation, but online e-commerce stores are “open” for 365 hours a day, 7 days a week, 7 days a week. This is very convenient for the customer and a great opportunity for the business.
Cost savings – The operating costs of e-commerce are significantly lower than in physical stores. There is no rent, no staff can hire and pay, and there are few ways to fix operating costs. This makes e-commerce stores extremely competitive in price, which usually increases market share significantly.
Automated inventory management – much easier to automate inventory management through the use of electronic online tools and third-party vendors. This saves e-commerce companies billions of dollars in inventory and operating costs.
Inventory management has also become more complex. You can now easily manage your inventory across multiple channels. So you can sell and monitor your inventory, Amazon , Etsy or physical stores in your own stores and markets like eBay .
Laser targeted marketing – Online merchants can collect large amounts of consumer data to ensure they target the right people for their products.
This reduces the cost of customer acquisition and keeps the e-commerce online business extremely agile. Imagine being able to locate men between the ages of 18 and 24 and living in urban areas. That laser focus marketing for you – only a physical store, you can not do this.
Niche market advantage – due to lower operating costs, can be for your target customers ideal , as well as a global audience covering e-commerce site brings, this can ensure that your company’s profit.
Location independence – An e-commerce business owners are not tied to any one location in the business. As long as you have a laptop and an internet connection, you can start an e-commerce business.
Type of e-commerce merchant
In general, there are two types of e-commerce merchants:
1. Those selling physical products: This is very obvious. It only buys and sells physical products through some kind of electronic medium. For example, you can sell merchandises from any of the following niches: fashion, accessories, household items, toys, and more.
2. Stores selling digital products (AKA downloadable products): If you have purchased online courses, they belong to the “Digital Products” category. As a general rule, if you must access the product through the online member area, or you must download the product, it may be a “digital product.”
What kind of e-commerce business can you start with?
What are the challenges of e-commerce?
In theory, everything in e-commerce sounds impressive, but like most things, you have to overcome some of the challenges when you launch your own e-commerce.
So, for balance, we think we’ll show you the potential pitfalls you might encounter in the early days of an e-commerce journey.
Trust : Trust is an important vocabulary in e-commerce and has many different forms.
- Can your potential customers trust you as a company?
- Can they believe that the payment gateway of your choice will not let them fail?
- Can they believe that your product is of good quality?
Trusted payment solutions PayPal can help people to visit your site full of confidence. Use the review system, such as Trustpilot or to register your site as Google trusts the store just several ways you can overcome these potential obstacles.
Technical question: If you don’t have a technical mind, let’s be honest – you don’t have to be an online store, you may run into the following problems:
- What if your payment solution stops working?
- Do you have any web design experience if you want to design banners or adjust graphics on your website?
If you can’t solve these problems yourself, you may need to outsource. Fortunately, e-commerce solutions, such as Shopify, WooCommerce and the Bigcommerce If these problems occur, we will provide specialized services to help you.
Competitors : The initial setup costs associated with launching an e-commerce business are very small, making it a saturated market. Therefore, research is essential before publishing, and find your niche .
No physical presence : Although this situation has improved over time, the fact that visitors do not see or feel any product may collapse.
Here are a few ways to fix this:
- Provide free returns
- Add high resolution images
- Show customers how to use your product
- Video including the product being used
- Includes a very detailed description of the product
- Place a FAQ section on each product page
Initial consumption : The biggest challenge facing e-commerce is how to get started and achieve this important first sale.
To do this, you may need to spend a little money to do something. Some cost-effective ways to get started, including:
- Run a Google Shopping campaign
- Use website pop-ups for data collection
- Use abandoned shopping cart email
- Publish the upsell/upgrade bar on your website
- Give products to influential people for promotion (you can use tools like this to identify them Buzzsumo )
What is an example of an e-shop?
E-commerce sites are emerging around us. Have they all succeeded? No, the most failed. but why?
In addition to all of the above reasons, business owners typically do not place user needs before their business ideas.
User experience is critical to e-commerce
Providing a superior user experience is a key feature of any successful e-commerce store. If you don’t consider this aspect, you will face a tough battle in driving sales.
So how do you provide a great user experience? First of all, it depends on your website design.