O e-commerce is constantly growing, year after year. This is because, over the last decade, consumer buying habits for products and services have evolved considerably.
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Many people today buy products or services on the internet, using online payments on all technological devices.
E-commerce is therefore a particularly dynamic market. However, launching your own eCommerce business is not something to be taken lightly.
For this, you need to understand what, in fact, an e-commerce is and how to create one with strategies that will really bring you expressive results.
What is an e-commerce?
E-commerce, or electronic commerce, refers to the act of selling a good or service electronically over the internet.
Companies and people they work with steel wardrobes can launch their e-commerce activity, then everything will depend on the type of transaction according to the e-commerce models.
E-commerce is a buying and selling process, via computer or smartphone. This multi-channel strategy is widely acclaimed, especially since, with new technologies, mobile commerce is gaining more and more traction.
For companies or individuals, if the purchase of products or services is made remotely, payment is also made online through electronic transaction.
An e-commerce can be a very efficient way to increase sales for a company that, for example, provides garden path tread, as it is an exclusive product that can be marketed to people all over the world.
Differences between marketplace and e-commerce
The first difference between a marketplace and an e-commerce is that your customer is no longer the same person. In a classic e-commerce site, the customer is the consumer, he is the one who comes to buy on the site, he is your customer.
In a marketplace, the customer is the seller. It is he who brings the billing to the marketplace operator and sells his goods or services on his website.
The marketplace acts as a commercial intermediary with final consumers and is remunerated through commissions charged from sellers.
In this sales configuration in which salespeople are enrolled, the business model changes and leads to a real revolution: moving from company to consumer and from company to company.
Furthermore, assuming that the marketplace is launched by a platform that already has a website, all functions linked to the final consumer remain more or less homogeneous, which is traffic buying, purchase funnel and more.
On the other hand, unlike an e-commerce site, this economic model requires the adhesion of sellers and, therefore, an investment in human resources, which makes it much more costly, as it is not interesting to depend only on organic sales.
There is also the following factor: product page which, for a marketplace, corresponds to a page on which the characteristics of the product offered for sale by the various merchants appear.
In e-commerce, product pages can be customized and optimized for search engines, thus making it easier for a consumer to find and buy your product.
Operation of electronic commerce
E-commerce is accessible on the internet 24 hours a day, seven days a week, unlike traditional commerce.
In practice, the online shopper follows almost the same buying process as when going to a physical store. He looks for information about a product and compares its price through a search engine.
At the same time, he may also be attracted to an additional item or service and thus make a compulsive purchase. As soon as you place the order, the online store's e-merchant takes care of the logistics and delivers the newly purchased product to your address.
E-commerce is a distribution channel. Simple and quick to use, it allows you to shop at any time, without having to travel.
Many customers are therefore seduced by the possibility of finding any product, from clothing to lighting equipment for a lighted dance floor, anytime, anywhere.
Taxes, consumer code, payments by card or other means, rights and duties of companies. This digital economy supports all the specifications of physical commerce.
types of e-commerce
Companies or individuals, each profile can trade on the internet. However, some specifics must be taken into account, such as the use of service providers, private companies, platform specifications and other details.
Understanding the existing types of e-commerce is essential for any company to be successful with its e-commerce, especially those that offer products such as personalized mini cupcake. Some types of e-commerce are:
- B2B: between professionals;
- B2C: between companies and consumers;
- C2B: from individuals to companies;
- C2C: from consumer to consumer.
These models are defined based on which target audience your product or service will be marketed, so you can base your communication and correct e-commerce structure.
B2B: between professionals
Business-to-business corresponds to the type of commerce between companies. One entity will sell items or services to another.
An example of B2B commerce would be an industry that manufactures glass and supplies the material to a business that has the service of balcony glass enclosure for houses and apartments.
There are several types of businesses like this, especially those that have the possibility of selling their products wholesale. So consider this B2B option as it could be much more profitable in the long run.
B2C: between companies and consumers
The acronym for Business-to-consumer refers to the commercial relationship between companies and customers. These can be commercial transactions and online reservations (such as buying tickets for concerts, airline tickets or hotels or services in the field of tourism and the like).
The professional sells to the individual who is the final link in the chain, either directly or through a marketplace. This default scheme is used in most physical stores with window displays, such as supermarkets.
C2B: from the individual to the professional
Consumer-to-business is the model that puts the individual in commercial contact with the company through active or passive prospecting.
For example, in online image banks, amateur photographers sell their productions to professional platforms, or else, a professional specialized in freight transport that offers its services to companies that need couriers.
C2C: Consumer to Consumer
The Consumer-to-consumer model corresponds to transactions between consumers. This form of commerce has been gaining a lot of strength, especially in small individual businesses such as thrift stores.
This facilitates transactions as they can be carried out in small amounts or services that can be performed on time, like a professional who performs upholstered chair washing, and can be hired by people who have this type of furniture.
The advantages of an e-commerce
Unlike a physical store that only reaches local customers, e-commerce can extend the marketing of its products far beyond the borders of the country, which represents many more potential customers for merchants.
This means that companies that have products that can be sold remotely benefit even more from the internet to increase their sales.
In addition, companies that work with services, for example, a food industry, can reach many more organizations that are looking for best food franchises to close the deal.
What's more, while brick-and-mortar stores have limited hours, an e-commerce store remains open at all times. Again, this is a great opportunity to increase your turnover.
This also impacts significantly lower operating costs than physical stores. To operate, they don't necessarily need employees or facilities.
It is also thanks to this that it is possible to offer particularly competitive prices, with very good profitability.
It's also much easier to manage your inventory in an online store than it is in a brick-and-mortar business. Inventory management is much less tedious, which again reduces operating costs and inventory costs for e-merchants.
Final considerations
If sales in your physical store seem stagnant, maybe it's time to take your business to the internet and start enjoying all the advantages it offers for companies to leverage their sales.
E-commerces have gained a lot of prominence in recent years, especially after the pandemic, because it allows businesses of the most varied segments and sizes to remain open and sell a lot.
Evaluate the different types of e-commerce and see which one is the best fit for your product or service. Also remember that you can combine the templates to create more sales opportunities when reaching businesses and end consumers.
This text was originally developed by the blog team Investment Guide, where you can find hundreds of informative contents about different segments.
