You hear it everywhere these days: e-commerce, but what exactly is it? E-commerce is a way for companies of all sizes to do business online, selling products or services, collecting payments and providing support to customers. E-commerce, simply put, is a way to do business on the Internet. You can use it to sell products (both physical and digital) and some services.
It is suitable for every type of business: from the self-employed to a large multinational. However, you must remember that e-commerce is not just about buying and selling. It is about the whole process: finding customers and meeting and supporting them before, during and after the sale.
E-Commerce websites
An e-commerce business is usually based on a website where products or services are displayed, which can then be selected and purchased. Usually these sites are custom made in Magento by web designers, but this can be a more expensive option. As an alternative, therefore, there are free or cheap ready-made e-commerce systems that can be adapted to the needs of the seller or 'trader'. Often WooCommerce or Shopify are used here.
E-commerce in different areas
- Business-to-business (B2B)
- Business-to-consumer (B2C)
- Consumer-to-consumer (C2C)
'Clicks and mortar'
Some e-commerce businesses only trade online, while others also have physical shops where customers can buy products. The first business model is called 'pure click', the second 'clicks and bricks' or 'clicks and mortar'. Almost all large shops are now 'click and mortar' and have physical shops in addition to an e-commerce function.
Advantages of e-commerce over traditional commerce
- E-commerce is not location-specific
- Webshops have no opening hours
- Webshops have greater efficiency
- Ability to carry a wider range of products
- Opportunities for direct online marketing
- Anticipation: more than ever, it is necessary to react quickly to the actions of competitors. An e-commerce initiative is never finished. Competitive advantage is created by anticipation.
Business benefits
- Making profits through online sales
- Building customer relationships
- Efficiency: quotations, requests for information no longer have to go through the Post Office but can be delivered online within two seconds.
- Cost reduction: e-commerce can reduce marketing, communication, inventory, advertising, transport and service costs. Because trade between producer and consumer can take place directly, distribution costs can decrease.
Forr the consumer
- Customer-friendliness: the convenience of making a purchase on the Internet. E-commerce allows you to save time and reduce costs when making purchases.
- Price: The increased price competition on the Internet between traders and the abundance of information available to consumers in many cases lead to lower prices compared to offers in traditional shops.
- Product choice: There is an extensive product choice on the Internet. Thus, all offered products are available to the consumer in no time at all.
- Mobility: there is now the possibility for consumers to make their purchases from home.
E-commerce and payments
E-commerce customers usually want to pay for products or services with their credit or debit card. Such a feature would not be a problem for existing businesses, but for novice e-commerce businesses without experience, it can be difficult. For such cases, there are direct online payment methods available such as PayPal. They are easy to set up and are used in many places, but cost more than direct debit or credit card payments.
Types of products sold with e-commerce
Digital products such as software, music/video and more expensive web content are usually delivered electronically, as downloads. However, most forms of e-commerce involve the sale of physical products that have to be transported from the seller to the buyer. Therefore, efficient packaging, transport and delivery methods are an important part of e-commerce, especially when it comes to fragile or expensive products.
E-commerce and customer service
Customer service is essential to be successful in e-commerce. Internet users expect to find information quickly and to have questions answered quickly. If not, they quickly go to another site. Even after the sale, problems or questions must be dealt with efficiently. Efficient sales and good support are two important elements in building long-term customer relations. The most successful companies have customers who feel valued, and therefore reward the company with customer loyalty.
Want to know more?
The constantly growing online trends, together with countless advantages and the fact that building a webshop is really not that difficult, make you consider it. If you feel like taking the (over)step, but you don't know where to start, we would like to help you in the right direction. Just take a look at contact on. We also have some blog posts written where we share essential information from web design, e-commerce and marketing. Good luck!
