E-commerce is a way of selling and buying products and services over the Internet. Even if you heard this term for the first time, I doubt that there is a single person that has never used e-commerce. The most popular fields of electronic commerce are online stores and banking, as well as subscriptions to different services.
Despite e-commerce being quite popular among Internet users, people still have questions about how it functions. In this article, we compiled the most popular questions with answers, so you would know everything about e-commerce.
What benefits does e-commerce bring to the customer?
First and foremost is convenience. Online stores work all day, every day, unlike regular stores. So, even if you suddenly get the urge in the middle of the night to buy a new shirt, you can do it.
The wide range of products is another advantage. For a regular store to have an incredibly wide variety of products, it would require having a big space for them. And that would definitely cost them a pretty penny. That is why keeping variety is easier when you are online.
From this follows our next point. Low investment costs. When you want to start an offline business you need to consider a lot of things like a place for your products, start-up capital, shop equipment and so on. But when you work online, you can skip half of those steps.
So, what are customers looking for?
Clothing is the most popular category of product among customers, followed closely by technology and leisure goods. Do what you will with this information, but we recommend using it wisely, especially if you want to start your own electronic commerce business.
I don’t want to be a seller, but I am interested in E-commerce. What should I do?
There are two ways that you can deal with this. You either can create an app that will help customers to look for specific products and monitor the prices, or become a so-called middleman between the buyer and seller.
What types of E-commerce are there?
There are 4 types of E-commerce in total. They are:
Business to customer – B2C – the company sells a product or service to an individual customer. For example, you buy clothes from an online store or subscribe to a movie streaming service.
Business to business – B2B – the company sells a product or service to another business. For example, a company sells software to other companies or offers wholesale goods for resale.
Customer to customer – C2C – a person sells a product or service to another person. For example, you sell your old furniture or clothing.
Customer to business – C2B – the consumer sells their products or services to a business or organization. For example, a person with a large social media audience advertises a company’s product for a fee, or a photographer licenses their photo for use in a business.
Are there any downsides to electronic commerce?
Any business system has its advantages and disadvantages. E-commerce is not an exception.
The biggest downside to this is intense competition. And it is not surprising, considering that establishing this type of business is relatively easy. Usually, there are thousands of similar online stores in almost every area, and it’s challenging to stand out among them. So, creating a thoughtful business plan will definitely help you to overcome this problem.
Another difficulty may come from shipping, especially international. For your business to function smoothly, it is critical to have a well-established delivery system. Logistics can become a real nightmare if you choose unreliable delivery services. Delays in fulfilling online orders are a frequent phenomenon, which has a negative impact on future sales.
And yet, with the right strategy, it is possible to create a high-quality platform that can fully replace visits to physical stores. Especially since the software tools allow you to create the effect of direct contact with the seller and make online shopping convenient and easy.
Online sales are evolving right before our eyes. This sphere is improving, growing and evolving. It is the future that is happening right now. E-commerce is one of the most critical factors for those who want or have already created an online business.
If you have ever wanted to create your own e-commerce platform, feel free to contact us via firstname.lastname@example.org, and we’ll make sure to create the app of your dreams.