Ecommerce is a business model that lets corporations and people sell and buy stuff over the web. It’s considered a disruptive technology since you can purchase almost everything you can imagine through personal computers, smartphones, or tablets. Music, books, groceries, eBooks, tools, financial services, and even plane tickets can be found.
A brick-and-mortar business can be substituted by E-commerce. Some companies decide on having both types of stores. This technology has helped many organizations establish a broader market presence through efficient and low-cost distribution channels for their services and products. Today, it’s common for mass retailers to have a physical presence and an online store. I’ll tell you more about it next:
What are the types of Ecommerce?
Most e-commerce stores fall into one of 4 categories. These categories are a tool to define a store’s business model. Each one has questions to answer and many benefits. In addition, most businesses operate in more than one category simultaneously.
1. Business to business – B2B
In this model, a corporation sells services or products to other businesses. Some of these products are raw materials or unfinished products sold to other companies to be processed further. In addition, products are often sold to a distributor to be resold to the final consumer. Transactions in this space sometimes take longer, but they offer more recurring purchasing and a high order value.
2. Business to consumer – B2C
Many companies in this business model are widespread and appear in the news often. B2C happens when a company sells to you directly. Think about food delivery, tools, movies, and music; they’re all part of a B2C transaction. This is one of the most common E-commerce models
3. Consumer-to-consumer C2C
This business model is also known by the term online marketplace. It connects consumers to exchange services and goods, profiting from listing fees or transactions. You’ll find big players in this space. An example is eBay.
4. Consumer to business C2B
This business model allows an individual to offer services and goods to companies. A business creates a bid, and many individual offers are presented. You’ll find affiliate marketing falls in this category. An attractive feature of this model is the pricing of products and services.
Some interesting Ecommerce statistics
As you read these words, the E-commerce market is growing. Many experts believe that up to 95% of all purchases will be made through Ecommerce by 2040. This has many implications and possible scenarios. As an example: Will in-store purchases be conducted through Ecommerce? If you see a product in a store and want to buy it, will you push a button on your mobile device?
Mobile commerce is bound to increase by 72.9% by 2021. This means that more and more people are buying through their smartphones, tablets, and other mobile devices. As a result, on-the-go shopping experiences will be more common. So what can you do to be prepared? You can check your website’s responsive design and mobile guidelines are up to date.
Digital buyers in the world are many, with over 2 billion of them. However, when it comes to the consumption of products and services, China is the fastest-growing market in the globe.
Another critical trend is voice technology. Around 9% of respondents in a research study mentioned they buy products through this channel. This means that a voice-enabled, mobile planet is what the world will likely look like soon. Therefore, it makes sense to easily order a product through voice hardware instead of logging in to a site, finding the product, and making a purchase.
Is Ecommerce still profitable?
This is a common question and a valid one. Although it may seem forever since the world uses Ecommerce websites, apps, and services, it is also true that compared to other channels, Ecommerce is still in its infancy. However, this field is being updated with new startups and innovative companies defining how you will use the internet to make purchases today and in the future.
Many e-commerce companies are still profitable because the initial business costs are relatively low. On the very first days of the internet, you needed a large budget for servers, bandwidth, and human resources. Today, you’ll find online companies that allow you to have a fully functioning online store in a matter of hours instead of weeks or months.
The availability of products like online store builders and open-source e-commerce projects allows the creation of online stores in every possible niche. Some of these stores are operated by companies, and you’ll also find that some of these online ventures are used by a single entrepreneurial individual.
You should also consider recent events worldwide in health emergencies that have increased the rate at which individuals and households generally embrace E-commerce.
What skills do you need for Ecommerce?
If you’re planning to launch a project in the field of Ecommerce, you’ll find you need some skills. You can acquire these skills or hire individuals who possess them.
The first skill is writing. You’ll need to create informative and persuasive product descriptions. The second skill is analytics and data analysis. When you analyze the results, you can do more of what’s working and avoid what’s not.
The third skill is design. Do you have a clear idea about how you want your store to look? The fourth skill is development. Can you handle some HTML/CSS, or maybe you can automate some of your work; this will come in handy.
The fifth skill is advertising. This high-end marketing skill is valuable when you want to plan, create, purchase, and execute online advertising for your store. Finally, the sixth skill is email marketing. This is a fantastic way to increase your clients’ fidelity and acquire new customers.
The seventh skill is marketing automation. Your providers can give you the ability to automate specific processes. It’s up to you and your knowledge if you want to implement it. The ninth skill is Search Engine Optimization (SEO). Organic traffic is faithful traffic; if you can optimize your content, you can get far.
We’ve explored the answers to What is Ecommerce? We then listed the main types of E-commerce. This allows you to follow a standard business model or to create one by mixing the available ones. We then explored E-commerce statistics. This is a step forward in the quest for understanding the effects this field has on society and the economy.
We analyzed the common question of whether Ecommerce is still profitable. This analysis puts to rest the notion that E-commerce is just a fad. Ecommerce needs digital skills, and we made an inventory of them. Ecommerce is an exciting field, allowing the opportunity to succeed with players of all sizes.