E-commerce refers to sales over the internet. More specifically, those made by a single company, be it a manufacturer or reseller, through its own virtual platform. If you work in marketing, communication, advertising and other related areas, you need to be in line with everything that happens in the market. And one of the main trends is the migration of buying and selling relationships to websites in the digital environment.
One of the most common forms of this migration is e-commerce, and that’s what we’re going to talk about in this article. We brought a complete guide on the topic to answer all your doubts about an e-commerce. Visit WebpageScientist.com to get in touch with the best ecommerce website developer according to your budget.
What e-commerce is and what it is for?
An e-commerce, or e-commerce refers to businesses that structure their buying and selling process on the Internet. Thus, all business transactions are carried out using online tools. It is easy to understand that the concept of e-commerce involves much more than just creating a website. This is a type of enterprise that differs in terms of and its operating structure – highly related to digital.
It is worth noting that e-commerce fully digitizes two basic processes: sales and customer service. From this work, it also opens the door to other automations, such as marketing, finance control and inventory. In this way, it facilitates and streamlines management work on many fronts. On the other hand, it also has the effect of increasing the strategic weight of the logistics issue.
Difference between e-commerce and online store
In order for you to better understand what an e-commerce is, it is essential that you must understand the difference between this concepts. As presented, e-commerce is not restricted to your website or sales portal. An e-commerce offers you multiple benefits. You don’t need your own business, own product, own website, etc. It is a platform that gives the sellers opportunity to sell thousands of product. Whereas, an online store must have a website and specific seller.
For example, AMAZON is an e-commerce store, and you can buy or sell millions of products from different sellers and origin. NIKE is a brand and it is not an online store or e-commerce. You can buy NIKE’s products from its own virtual store (online store). It is also available in e-commerce websites (AMAZON).
E-commerce and marketplace
In addition to the confusion generated between e-commerce and online store, there is also a big question about what a marketplace is and what differentiates it from e-commerce. To clarify this, the marketplace is presented as a type of e-commerce, a variation in which the virtual store is not its own. The marketplace offers a common platform for several companies to sell their products.
This platform intermediates the collection process and also assumes a certain part of the responsibility for ensuring the delivery and quality of the product sold. For a storekeeper, the marketplace is an attractive alternative because it is much simpler to manage. The entire structure is ready, just register and start cataloging products.
What are the advantages of e-commerce?
Why does the consumer choose e-commerce over a physical store? Firstly, because prices tend to be cheaper. After all, an e-commerce has less costs, as it should not rent stores, pay and sellers’ commission. Second, because it is more practical. Especially for the consumer who likes to compare prices. According to a survey, the three main advantages pointed out by consumers are: possibility to purchase at any time (convenience); price comparison and best prices.
Although price is one of the main reasons. Convenience still stands out in this scenario, indicating the need to focus on the customer experience at the time of acquisition. However, there are still two factors that lead consumers not to shop online. The first is the issue of security. The second is the waiting time for delivery. There are strategies that help to dispel these objections.
What types of e-commerce?
Apart from market place, there are different types of e-commerce. However, there are also other categories of e-commerce that we can explore. Understand more about each of them.
E-commerce B2B x E-commerce B2C
B2B (Business to Business) e-commerce is used by companies whose main customers are other companies. In general, it is dedicated to selling machinery or raw materials, although it can also sell finished products. The main issue is that it requires a more complex system. The B2B e-commerce system needs to be prepared to work with variables in the price list, payment terms, minimum order rules, registration and credit limit approvals, taxes and shipping. B2C e-commerce (Business to Client) is used by companies that sell directly to the final consumer. There are no limits to the types of products that can be sold in this category: furniture, clothing, medicines, electronics, food, services, etc.
E-commerce Wholesaler x E-commerce Retailer
The wholesale e-commerce works with selling in large quantities. The main implication of this category is in the logistics of delivery. Due to the volume, it is necessary to have good partners for transportation. To simplify the process, it is common for wholesale e-commerce to offer the possibility to buy online and withdraw in person. On the other hand, as virtual stores typically manage to offer lower prices on products, this is where it wins over a competitor with a physical store. Retail e-commerce is more common. The retailer typically does not have a large inventory of products, as it works with small quantity sales. In a physical store, this does not causes so many problems. As the lack of stock will be immediately noticed and informed to the customer.
E-commerce of physical products x E-commerce of digital products
In general, when we think of e-commerce, we immediately remember physical products. There is not much to explain here. However, it becomes much more interesting when compared to an e-commerce of digital products. Digital products e-commerce is one that essentially sells or rents content and information. We are talking about digital films, e-books, distance courses, software or games, etc. Compared to physical products e-commerce, this category overcomes many problems.
Inventory and logistics are completely eliminated from the workflow. There is no limit to how much you can sell and there is no “delivery” in the formal sense. However, this category faces its own dilemma. This is piracy. Measures must be taken to prevent the product offered from being copied and distributed, otherwise sales will plummet and the loss is certain.