Have you ever wondered what e-commerce is exactly?
It’s very likely because e-commerce is more fashionable today than ever. However, like several others, perhaps you do not know the precise meaning of this term or the differences that exist between e-commerce and other similar concepts.
What is electronic commerce?
E-commerce consists of a website that allows business transactions to take place on the internet. It can be a site that is managed by the merchant, such as Home Depot, a market website, such as Amazon, which represents many suppliers, or a social media website, such as Facebook (which now offers the possibility to sell online).
The online world is still a relatively mature sector. Technological changes are continual, and new online businesses respond to new needs.
Differences between e-commerce and e-business.
E-commerce and e-business are two concepts that we tend to confuse. In reality, they have nothing to do with each other.
E-commerce refers only to the dealing of goods and services between a buyer and a seller.
E-business, on the other hand, refers to the whole process to be implemented in order to manage an online business.
Different forms of ecommerce.
How substantial is the growth of e-commerce today?
One of the advantages of e-commerce is that online sales are growing faster than retail or wholesale outlets, which have instead invested in traditional areas. The scale is significant: 12% growth for e-commerce sites and 2% growth for stores, according to the 2017 perspectives of the National Retail Federation.
What are the financial benefits of electronic commerce?
The increase in the volume of e-commerce transactions is reason enough to adopt this marketing strategy. However, the cost element is another interesting reason, as well as the speed of deployment.
The installation of a traditional installation or surface takes time. The location is risky and expensive.
With an online store, costs are more easily managed, and so are the risks. You can start small without worrying about the appearance of being small. As your business nurtures, you can reinvest more effectively through campaigns such as AdWords to target specific customers and products. It helps increase your market penetration globally, internationally, or locally.
Finally, the need to invest in surplus physical sites to reach other customers in other geographic areas is not necessary.
What about your ability to be recognized in the market?
Having an ecommerce business allows you to get better brand recognition. Most consumers today compare products online before making a purchase.
Your online store will enable you to inform your potential customers better and to present your products or services. It is, therefore, important that your site is configured correctly, secured with an https certificate, and updated with the appropriate content to increase search engine optimization (SEO).
Why is an ecommerce site more efficient?
A final benefit of e-commerce is that it will improve the productivity of your organization. It allows transactions to take place 24 hours a day, seven days a week, without requiring your active participation at all hours of the day and night. It makes you more efficient and provides better customer service. You also get better inventory control.
Adapt or perish?
In summary, the main benefits are lower cost, better market coverage, easier branding, and improved customer service. Today, more than 45% of consumers shop online. Your business website will be well served by an e-commerce component. Otherwise, you risk being behind your competitors.