In general way it is a part of electronic business that includes trade and financial transactions organized via electronic networks.
Actually, everything connected with business automation, maintenance and organization of commercial deals on the Internet can be covered by this term. If you still feel it a bit difficult, let’s take websites with hotels booking, tickets ordering and online shops.
The niche is very financially promising as it is expected to reach more than 4 trillion dollars by 2020. Mobile sector growth is extremely high, the results were 40% higher there in comparison with the previous year.
Why ecommerce marketing platform is so popular?
The growth can be explained by several reasons. However, everything seems to be logical and simple when we realize what a great part of our lives is taken by Internet, the companies have caught it and that is what we have as a result:
- Global markets. Traditional offline shops are restricted in their possibility and can cover needs of the location they are in. Online shops don’t face such a limitation as the whole world can become their clients. It seems to be the most significant advantage of electronic marketing nowadays.
- Availability round-the-clock. Do you remember those awkward moments when you were hurrying to your favourite shops and they are closed for stock take or lunch? Online shops have nothing in common with it at all. They are always open, that is greatly convenient for buyers and extremely beneficial for sellers. No matter what day it is today or your timezone – you can purchase at any moment you want.
- Lowering of expenses. Ecommerce shops win a lot as they don’t have to pay so many fees as traditional ones do. Just imagine, offline shop is to pay rent for the room, utility bills, workers education, sick days and so on. When we talk about online business, they are released from all this stuff, probably, except payment for a storeroom where the products are kept. Logically, as sellers do not have to invest so much, they can offer competitive prices in comparison with their offline analogues.
- Targeted marketing. Ecommerce firms have high level of flexibility as they have a wide range of users’ data regarding their habbits, new tendencies in the niche and, thus, apply their marketing forces to provide current clients with better experience and acquire new ones.
- Work from any place in the world. This point can be linken to the first point in our list. Traditional shops, offices and malls have a stable location place and you have to be there during working hours. Ecommerce sellers are more free in this case as all you need is an automated system of control to run your business and stable Internet connection to track the system and accept orders from all over the world. Having winter in Goa and spring in France is more than just possible in this case.
Types of e-commerce businesses:
- Business-to-business (B2B) – one firm sells products or services to another. For example, a stationery store sells copying machines to an office. Buying company, generally, has some benefit when orders the goods in a bulk as there is a discount usually provided.
- Business-to-client (B2C) – firm sells the products to private individuals. Product stores can be a good example here: buyers get some of their products, generally it is a small amount and discounts are provided in special cases as no bulk purchase is expected.
- Client-to-client (C2C) – this model is relatively new. Online flea markets and auctions can be used to explain the case: one person sells something unnecessary for him, while a second participant gets the product he needs at lower price. It is very useful when you want to get rid of something not really important for you and get some money from it.
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