E-commerce occupies an increasing market share, increasing every year, both in volume and scope. It’s time to talk about what it is and how it works.
Electronic commerce (e-commerce) refers to commercial activities related to the distribution, advertising, promotion, as well as the sale of services and goods via the Internet. Shopify development services.
In this article, we will look at the types of e-commerce, the pros and cons of this type of business and how it works.
The most common e-commerce options are B2B (Business-to-Business) and B2C (Business-to-Consumer).
B2B is a business niche that implies the conclusion of deals and partnership contracts, the sale of products or services from one legal entity to another. In B2B, the most important thing is to establish relationships with those employees and managers of the company who are empowered to make the decisions necessary to work together on behalf of the company.
In general, the benefits relate to simplifying and automating business processes and increasing profits.
In order to open an online store, you do not need to rent a space or hire an entire staff. Also, you can automate many business processes, including lead generation, communication, order processing, data collection, to reduce costs.
Expanding the target audience
Today, most of the world’s population uses the Internet – millions of people actively use several social networks and shop online. Precise targeting and ad targeting tools enable you to find and connect with the people who are most likely to be interested in your products and services.
E-commerce allows manufacturers to sell their products to a customer directly. This reduces the number of intermediaries and has a positive effect on the quality of service and prices.
Brands that maintain pages on social networks are becoming more open, human and delicate, because they are in plain sight and their every word can affect their reputation. In order to maintain a good reputation, brands respond to complaints and requests from people in the comments, interacting with them directly, in person.
Google Analytics, Yandex Analytics, Facebook Insights, and others collect tons of information about user behavior and interests. This data can be used to maximize the effectiveness of your marketing campaigns and increase sales.
Now users in many countries of the world can make purchases without leaving Facebook or Instagram. This makes online shopping extremely comfortable for users and at the same time plays into the hands of business, because people can make quick, emotional purchases.
Another feature of e-commerce is multichannel commerce. Today it is not enough for a company to simply launch a website. You need to be present on social networks, in instant messengers, on message boards and in various directories in order to reach as many buyers as possible. You also need to use remarketing and retargeting to build relationships with those who, for some reason, did not complete the purchase or did not reach the deal, but were already interested in your product.
The inability of entrepreneurs to work with clients on the Internet. It turns out that the business is not yet ready to trade online. Here is a completely different approach, both to communication, to order processing, and to the sale of goods. You need to set up a sales department, monitor analytics, set up logistics … But many are not even able to accept a normal order from a client: call back on time, explain well, send the goods on time and do everything to ensure that the client is satisfied with the service. So you need to start with yourself.
Rapidly growing competition in all areas. The sphere of e-commerce is developing, many companies rushed to the Internet for clients. Because of this, the cost per click rises, it is more difficult to stand out from the background of other companies and attract the attention of the client.
Distrust of consumers, because many have no confidence that a real company is behind the site, that you will not be deceived. There are a huge number of fraudulent schemes, as the Internet creates a sense of impunity (due to the lack of normal legal regulation, it is).
It is difficult to bring new staff and staff. Managers and other personnel need to be trained separately to work with clients, and work with new software. Makebecool.
Problems with information security. It is necessary to use services with enhanced security system to avoid data theft or leakage.