Understanding the importance of e-commerce.
Understanding the significance of online retail and the exciting future that is being predicted, all brands and businesses must recognise that, to maintain market influence it is necessary to have a presence in the virtual world.
Companies with online storefronts have reaped the benefits, while those without have been struggling to catch up, frantically attempting to reconnect with their customers. With stores worldwide struggling with the financial consequences of the lockdowns, it’s natural that many small companies are questioning if it’s worth it. With the pandemic still looming, re-connecting with customers is critical for any small company right now.
At Digital One Agency we have the answers to your questions regarding eCommerce, In this post, we’ll go over why having an eCommerce site for your company, no matter how big or little, is critical.
What is e-commerce?
The practice of purchasing and selling items or services, making money transactions, and exchanging data through an electronic form is called eCommerce, this is also known as electronic commerce. This network enables people to do business without regard for location or time. Online shopping and trading over the Internet, defined as buying and selling products through the internet on any device, is the most well-known example of eCommerce.
For both organisations and consumers, e-commerce is a versatile option. Few individuals have the time or patience to shop on the street in today’s competitive and convenience-oriented culture.
Different types of e-commerce
There are four types of traditional eCommerce business models. If you’re establishing an eCommerce business, you’ll almost certainly fall into one of these four categories. Each has its own set of advantages and disadvantages, and many businesses operate in many categories at the same time.
The four different types of e-commerce are:
This form of e-commerce is called business to consumer, and it involves companies selling their products and services directly to customers. It is the most popular form of e-commerce model used by companies. Consumers may explore and pick which product they would want to purchase using a variety of technologies available such as mobile applications and websites.
This is an example of a business-to-business transaction. Companies are conducting business with one another here. There is no involvement of the customer directly. As a result, internet transactions are limited to manufacturers, wholesalers, and merchants. A firm sells its product or service to another business in a B2B business model. The buyer is sometimes the end-user, although most of the time the buyer resells to the consumer.
A consumer-to-consumer (C2C) business, often known as an online platform, links people to exchange products and services and generates money by charging transaction or listing fees. In the early days of the internet, companies like Craigslist and eBay established this method. Consumer to consumer refers to situations in which two or more people are in direct contact with one another as there is no corporation engaged. It is beneficial to individuals that wish to sell their and assets directly to that buyer, though this means that there is no quality control.
A consumer-to-business transaction refers to when an individual sells their product or service to a company. An IT freelancer could use this transaction type, this could be done as they could develop their software and sell it to a large corporation. This type of e-commerce model allows consumers to put a price on their product or service.
Modern types of e-commerce business models are:
- White label – refers to a product or service that is produced by one company and sold by another
- Dropshipping- refers to a store that has no inventory or stock, as it purchases products from a third party supplier, who then ship that product to the end customer directly
- Print on-demand- refers to a business that works with a supplier that customises white label products with the specific designs that are sent across to them, to sell the product on a pre-order system
- Private label- refers to a manufacturer of physical products selling them to resellers
Questions that will guide you on selecting your e-commerce business model
- Who are you trying to sell your product or services to?
By engaging with this question it will allow you to target your market directly and reach them, you can do this by marketing and advertising where they will interact with it.
- What are you trying to achieve and how proficient are you
This question will enable you to recognise your abilities and what you find challenging or effortless. The business model you choose will determine if your business can operate efficiently and effectively.
- Where are you positioned in your specific business field
This will permit you to gauge your competition and ensure that customers know what separates you from other similar businesses.
- Do you control the manufacturing
- What are your inventory and supply management abilities like
Examples of E-commerce
Benefits of e-commerce
There are endless benefits of having an e-commerce site for your business, especially considering that we are in a worldwide pandemic. Covid has left small businesses to large corporations having to implement e-commerce sites, as lockdown means that consumers must resort to online shopping.
The benefits of e-commerce for businesses are:
- Sell without limitation
- Available 24/7
- Broaden brand
- Showcase all products easily
- A cheaper option for advertising
- Improved outreach to consumers
The benefits for customers:
- Conveniently shop
- Larger range of products to choose from
- More information on the products
Why is e-commerce so important?
E-commerce is profitable and effective for all types of businesses owners. E-commerce allows businesses to continue to supply their products and services to customers while the restrictions remain. Without e-commerce, many businesses would shut down and be unable to generate revenue to survive. There are many benefits of implementing an e-commerce site for your business as seen above.
The exponential growth of online shopping, even before the pandemic allowed businesses to reach more people, compared with traditional retail. It ultimately increases sales and profit for all businesses across the world and it is a convenient solution for both businesses as well as customers.
Digital One Agency has years of experience with creating e-commerce solutions using Shopify, WooCommerce and custom PHP development. Get in touch today to see how Digital One can assist your business online.