What is eCommerce? A Brief Introduction

Most of us just stuck with a question, “which is the best eCommerce platform to start an online business as various platforms are available in the market that helps with the development of an online store. 

As we will talk about eCommerce today, its benefits, models, and more, don’t get puzzled. 

Let’s start!

What is eCommerce?

Also known as electronic commerce, eCommerce refers to buying and selling products or services using the internet and transferring data and money to execute the transactions. 

In 2022, the global retail eCommerce sales will reach $5,424 billion and $5,908, and $6,388 billion in the next two years. 

So, these stats are enough to depict that eCommerce businesses will witness growth in the years ahead. 

Types of eCommerce Models

Four major eCommerce models are popular in the market that helps describe almost all the transactions between businesses and consumers. 

Let’s check them out below:

Business to Business (B2B)

A business that sells goods and services to another business, such as wholesalers and manufacturers, is a B2B eCommerce. 

Business-to-business ecommerce is not customer-facing and usually includes products, such as software, raw materials, or linked products. Moreover, manufacturers sell directly to the retailers via B2B eCommerce. 

Business to Consumer (B2C)

It’s the widely-known eCommerce model in which the sale takes place between a business and a consumer. For example, when you purchase anything from an online retailer, it’s the B2C model. 

Direct to Consumer (D2C)

It’s the newest model of eCommerce, the trends of which are constantly changing. In this model, a brand sells directly to its end-customer, not via wholesaler, distributor, or retailer. The popular D2C item is a subscription and social selling using social media platforms like Facebook, Instagram, etc. These platforms are pretty famous for direct-to-consumer sales. 

Consumer to Business (C2B)

When an individual sells its goods and services to a business organization, it’s C2B eCommerce. It encompasses influencers offering photographers, exposure, consultants, writers, etc. 

Consumer to Consumer (C2C)

It refers to the sale of products or services to other consumers. C2C sales take place on the platforms such as Etsy, eBay, etc. 

Best eCommerce Platforms 2021

Various eCommerce platforms are there in the market that is gaining popularity and much in use. Let’s check out a few names:

• Shopify
• Magento 
• 3D Cart
• BigCommerce
• WooCommerce
• Salesforce Commerce Cloud
• Prestashop

Some Examples of Types of eCommerce

Dropshipping

The manufactured goods are sold and shipped to consumers via 3rd-party. 

Retail

The products are sold directly to the customers with no intermediary. 

Digital products

Downloadable items, such as eBooks, courses, media, or software, are bought for use. 

Services

The skills like writing, coaching, influencer marketing, etc., are bought and paid for online. 

Wholesale

Goods are sold in bulk, usually to the retailers who further sell them to consumers. 

Crowdfunding

The sellers raise startup capital to introduce their goods to the market. 

Subscription

Such services are the recurring purchase of goods or services.

What are The Benefits of eCommerce?

eCommerce has witnessed massive growth in the past few years. Businesses are also taking advantage of various benefits of eCommerce using the internet. Some notable are described below:

24*7 Availability

An online business is always open. It is always available to serve the customers. For a merchant, it’s best to boost sales opportunities; for a customer, it’s an easy and convenient option. 

Inventory management

eCommerce businesses hold the caliber to automate their inventory management using e-tools to speed up delivery, ordering, and payment processes. 

Working from anywhere

To run an eCommerce business, one doesn’t need to stay at his office from 9-5. He can manage his business from anywhere all over the world. 

Targeted marketing

Getting access to the wealth of consumer data, the business owner can focus on consumer buying habits and growing business trends. 

Reduced costs

eCommerce businesses demand reduced running costs as the business owners don’t need to hire sales staff or look after a physical storefront, manage warehousing and product storage. 

How to Start an eCommerce Business?

Well, it would take even less than a day to set up an online store. It involves researching, developing, launching, and growing an eCommerce business and several decisions and steps. 

Let’s check more.

Selecting and sourcing an item

Firstly, you need to decide what products you would choose to sell. It would demand hard work. So, it would be best if you become well-prepared to conduct some research. 

Conduct research and plan 

The product you choose to sell will let you know which market aspects you need to research. But, it would be best to consider these critical areas, like pricing, competition, your unique value proposition, and strategy. 

Also, you should craft a business plan that will assist you in identifying any potential obstacles or threats and visualize your growth approach. 

Think About Key Elements 

Next, you need to think about the essential elements of your store, like your brand name, guidelines, domain name, and logo. This way, you will catch up with a track to speed up your growth and win the hearts of your potential customers. 

Decide How You Will Sell

You can develop an online store from scratch or consider using an eCommerce platform, like Shopify, Magento, or Woocommerce. 

Conclusion

Since its birth, eCommerce has emerged as the best way to discover products quickly, purchase them through marketplaces or online retailers. eCommerce has proved to be beneficial not only for large corporations but also for small businesses and freelancers. 

So, if you haven’t tried yet, choose an eCommerce platform, start your business online, and get benefitted.

We at Emizentech are experts at building robust e-commerce websites and stores for small and large businesses. So, hire us as your ecommerce development company to bring your business online.