It has been several years since ecommerce or electronic commerce began to become increasingly popular as a business model and has become the preferred method of purchase for consumers, especially among young people.
Many companies have left behind the traditional physical sale to expand on the Internet. In fact, more and more businesses are being born to provide services exclusively online, but what exactly is ecommerce and how does it work?
What is an ecommerce or electronic commerce?
We could define an ecommerce as a virtual store. A method of buying and selling that uses the Internet as a means of conducting transactions and contacting consumers. Not only through a website, but also through social networks. These are a source of information with a lot of impact, and allow you to get closer to your target audience.
This business model has been key for small businesses to grow and access other markets, something very difficult to achieve by traditional means. Not needing large infrastructures and being able to dispense with limitations such as time, space or logistics has favoured its expansion.
How does an ecommerce work?
Online business opens up a wide range of possibilities for the company. It offers the opportunity to reach a greater number of consumers regardless of where they are. In addition, the reduction of costs in terms of renting physical premises (with all that this entails), allows the price of the product to be lowered and to be more competitive.
Setting up an ecommerce business is not unattainable. You need a website that offers a good consumer experience, sells personalized products and a reliable messaging service. Also, of course, a lot of desire to bring your own business and creativity to promote it.
In addition, one of the biggest advantages of online commerce is the possibility of segmenting the different audiences. This means improving the effectiveness of communication and marketing actions by launching specialized campaigns.
Who is our customer in an ecommerce?
There is no explicit customer for all ecommerce. This will depend on the product or service offered and the business itself, as there are different types of ecommerce. The most common are four: the B2B (Business to Business), the B2C (Business to Consumer), the C2B (Consumer to Business) and the C2C (Consumer to Consumer).
The main difference between these models is in the customer. While B2B companies aim to sell electronically to other organizations, B2C companies target the end consumer. In C2B, on the other hand, the buyer is the point of reference. He is the one who proposes and sets the conditions of the transaction.
Once the offer has been made, companies may or may not accept it. The latter, the C2Cs, commercially connect two individuals. There is usually an intermediary who acts as a mediator. This would be the case with companies such as Ebay, which provide a platform where consumers sell and buy from other individuals.
What is an ecommerce expedition?
When a customer places an order, it needs to be prepared, grouped and packed before it is picked up by the courier company. In an ecommerce, the set of actions prior to the final shipment of the products ordered by a customer is called shipping.
The dispatch of an order is the final step of the goods in the warehouse before they are sent to their delivery address.
How to create an ecommerce?
Creating a business from scratch is never easy, but neither is it impossible. If you’re looking to set up an ecommerce business, you only need a small investment and a lot of time.
Here we explain the six fundamental steps to start developing your own online business:
- Analysis of the situation: Although you have clear the product or service you want to offer, it is crucial to make an external and internal analysis of your project. However, with special attention to demographic, economic, technological, political and socio-cultural factors. Decide who you want to address, detect who will be your competition, prices and limitations. It is better to take all the variables into account before discovering them once the adventure has begun.
- Creation of the site: When you have a clear business idea give free rein to your creativity to choose the name and domain. Currently there are online tools that allow you to create an ecommerce for free. If you have enough budget, it is advisable to hire a quality hosting company. Adequate browsing speed is key to success. As for the design, the website should be original, attractive, and easy to understand and use.
- Find a good courier company: The speed and punctuality of the orders must be impeccable. Hire a reliable dropshipper and make it easy for the customer to locate their order in real time. In the case of not wanting intermediaries, try to have an effective messaging system.
- Personalize your products: We can say that there are already online stores of all kinds. The competition is guaranteed. That is why it is necessary to look for ways to personalize and add value to your products. Differentiate yourself from the rest and find something that characterizes you. Get to be better than the rest.
- The more payment methods, the better: There are customers of all kinds. Some won’t trust you to buy online and will only pay if there is a refund option. Others, however, will prefer to make transfers, pay by card or opt for PayPal. That’s why the more payment methods you make available to the buyer, the better experience you’ll offer them.
- Online advertising and digital marketing: Have you already got your ecommerce regulated and set up? The time has come to get customers and make yourself known. To do this, it is important that you are present in social networks and that you are very active. Create original advertising campaigns using Google Adwords to make yourself visible on the Internet and promote your own online marketing strategy. Try launching special offers, organize contests that suit your needs or send your product to influencers that suit your audience. Do everything you can to make your brand known, make the most of your creativity and… Done!