Ecommerce
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What is E-Commerce And Why Does my Business Need It?
9:40 PMTransacting or facilitating business on the Internet is called e-commerce. E-commerce is short for "electronic commerce."
Modern examples of e-commerce revolve around buying and selling online.
But the e-commerce universe contains other types of activities as well. Any form of a business transaction conducted electronically is e-commerce.
What is e-commerce marketing?
E-commerce marketing is the process of driving sales by raising awareness about an online store's brand and product offerings. Digital marketing for e-commerce applies traditional marketing principles to a multichannel, data-driven environment.
E-commerce marketing can be divided into two general actions: driving website traffic and optimizing the user experience for conversion. Both are critical components to growing an online business — failure in one is all but sure to undermine any success in the other. Seasoned marketers can thrive in a digital landscape, starting with a solid foundation of common terms.
Popular e-commerce business example:
Amazon: Amazon was founded by Jeff Bezos. According to Alexa, Amazon has currently ranked the 9th most popular website worldwide, and 4th in the United States.
eBay: eBay was founded by Pierre Omidyar. On Alexa, the e-commerce site is ranked 33 globally, and 9th in the US.
AliExpress: AliExpress was founded by Jack Ma. It’s currently ranked 40th in the world and 9th in Russia according to Alexa.
Flipkart: Flipkart was founded by Binny Bansal and Sachin Bansal. Alexa has it ranked 147 globally and 9th in India.
Also read: How To Start Online Business From Home
E-commerce investment
Investing in e-commerce is important for all businesses, because consumers use all channels at their disposal when researching, selecting and buying a product. In-store browsers can become online shoppers and vice versa. This was seen in the Wipro data. Even when consumers reported browsing both online and in a store, one in three (34% in the US and 33% in the UK) chose to go back online to make their purchase.
Does my business need e-commerce?
Setting up an online store can be difficult, especially if you are not an expert web designer. If you don't have an advanced knowledge of online sales, you may be daunted by the prospect of moving a significant portion of your operation online. You may be worried that your online endeavor may fall well short of your expectations and put the success of your business in serious jeopardy. The truth of it is that if you choose not to take the plunge, a hundred companies are waiting right behind you that will. There is no doubt that e-commerce is here to stay.
When implemented correctly, e-commerce:
- Connects you to a customer base you otherwise never would have access to
- Lower your costs and raise your margins on sales
- Create an automated flow of repeat business and perpetual ordering cycles
- Save you lots of money in loss prevention costs
- Increase your brand recognition and make your business a leader in your industry
- If any of this sounds good to you, and it should, you should take the time to look into building an e-commerce platform for your business. It may not be as hard as you think it is, and it could have an enormous positive impact on your business for years to come.
Whether you're a bootstrapper or an investor with a bit of extra money to start a new enterprise, e-commerce is a great field to get into, especially today. Even as a beginner in e-commerce, the tools and resources are all laid out for you. All you need is a strong work ethic and a desire to succeed.
Benefits of E-commerce
The primary benefits of e-commerce revolve around the fact that it eliminates limitations of time and geographical distance. In the process, e-commerce usually streamlines operations and lowers costs.
Specialized Forms of E-commerce
On some platforms, e-commerce has shown the promise of explosive growth. Two such examples are:
M-commerce
M-commerce is short for "mobile commerce." The rapid penetration of mobile devices with Internet access has opened new avenues of e-commerce for retailers.
F-commerce
F-commerce is short for "Facebook commerce." The immense popularity of Facebook provides a captive audience to transact business.
Despite this discussion, at the consumer level, online retail has become synonymous with e-commerce.
Conclusion
Most entrepreneurs have other business ideas they would one day love to explore. Once you've built up a successful ecommerce business, selling it may provide you with the capital you need to move onto greener pastures.
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