Electronic commerce, which is commonly written as eCommerce, refers to the trading or facilitating of trading in products or services using computer networks, such as the Internet.
eCommerce relies on technologies such as mobile commerce, electronic funds transfer, electronic data interchange (EDI), supply chain management, online transaction processing, Internet marketing, inventory management systems, and automated data collection systems.
The World Wide Web is commonly used in modern electronic commerce for at least one part of the transaction’s life-cycle. Although other technologies, such as e-mail, can be also used.
eCommerce – Why should you get into it today?
Here are some reasons to start an eCommerce business.
eCommerce is expected to grow.
According to eMarketer, global eCommerce sales are expected to peak at nearly $2.5 trillion by the end of 2018.
The US market is expected to grow by somewhere between 11.6% and 16.5%. China, with a projected $1 trillion in retail eCommerce sales by 2018, is anticipated to develop into the world’s 2nd largest eCommerce market, while the UK market is expected to generate about one-quarter of that figure.
That means that now is the best time to tap into the world of online sale as emerging markets rapidly enter the eCommerce game. Every day the opportunities increase.
It’s recommended to examine trends when choosing a business model when moving into growth markets. The eCommerce model is an excellent choice for those that are interested in diversifying and expanding, or for entrepreneurs that are looking to start a new business.
The ability to earn as you sleep.
In eCommerce, your business can be seen across the entire world, there’s no need of multiple storefronts. You just need a domain name to sell your products globally from anywhere in the world.
You don’t need to have products in stock, because you can drop-ship your goods. Also, marketing, customer support, and accounting can be easily outsourced to international agencies.
Automation is being used more and more in the business process. Therefore, eCommerce has a certain “passive” appeal, because it is possible to earn money as you sleep. Still, in order to expand, business owners should be looking to leverage technology at every turn.
It’s easy to get up and running.
Nowadays, there are more tools for eCommerce than ever before, and they’ve gotten a lot better over time. There are plenty of Tools for marketing, optimizing, and tracking your online sales.
Launching your first eCommerce website has now become intuitively straightforward with platforms like Shopify.
There’s the option of offering a wide selection of pre-made design templates, multiple payment methods, easy check-out, and free hosting.
The most challenging part is identifying your ideal product. If you choose a specific line of products, it gets easier to walk through the process.
Eighty percent of the web population has made a purchase online.
80% of world’s population has made an online purchase. As you can imagine, that 80% is only going to increase.
Establishing trust and credibility with leads and customers are key factors as an eCommerce business owner. There are different methods for earning your customers’ trust, like developing an attractive website, having safe and easy payment forms, and displaying good content. All of this, will turn into more leads and sales.
Trust is one of the most important factors of running an eCommerce business.
eCommerce – Why is it so hot?
The bellow facts will tell you why eCommerce is so hot today.
- Pizza Hut was one of the first major brands to experiment with online commerce, starting in 1994. (source)
- 80% of the online population has used the internet to make a purchase, and 50% of the online population has purchased online more than once. (source)
- 79% of online shoppers desire a tracking option with their delivery. (source)
- Asia holds the largest number of web purchases, with South Korea at the top of the list. (source)
- An analysis of the traffic sources of eCommerce stores at Kissmetric reveals that 30.5% of their overall traffic comes from organic searches on Google, Yahoo, Bing and other popular search engines. (source)
- it reveals that around 70% of online shoppers use Tablets and 47% of them use smartphones for their online shopping. (source)
- Marketing Donut reveals that new visitors spend an average of 2 minutes 31 seconds as compared with 5 minutes 31 seconds by returning visitors. (source)
- Kissmetrics reveals that less traffic comes to eCommerce stores during the weekends versus weekdays. (source)
- An article by Feedteck.com reveals that Facebook, YouTube and Twitter are among the most popular social media sites that bring more traffic to eCommerce stores versus other social networks. (source)
- UPS Pulse of Online Shopper 2015 reveals that 84% of online shoppers get help from at least one social media site and read peer reviews before purchasing online. (source)
- By spending several billion dollars every year, eCommerce has continued its double digit growth. (source)
- In 2013, retail eCommerce sales amounted to 3.5 billion US dollars and are projected to grow to 14.18 billion US dollars in 2017. (source)
- Mobile eCommerce will be worth $3.2 trillion in 2017, up from $1.5 trillion in 2013 – a whopping 213% increase. (source)
- Global eCommerce sales made via mobile device is expected to grow to $638 billion by 2018 according to Goldman Sachs. (source)
- Apple still dominates mobile eCommerce. iPhone’s share of eCommerce orders was 50.6% and Samsung was 30.5% in Q1 of 2014. (source)
- Mobile eCommerce will account for 30% of global eCommerce sales by 2018, up from 15% in 2013. (source)
- 46% of users read reviews and blogs before purchasing online. (source)
- Blogs influence purchases, 13% said a blog post had inspired a purchase. (source)
- 84% of online shoppers refer to at least one social media site for recommendations before shopping online. (source)
- 71% of shoppers believe that they will get a better deal online than in stores. (source)
eCommerce – How does it work?
More and more people are buying online because of convenience and good prices. Online stores can reduce prices because they are able to eliminate costs related to having employees.
In today’s busy world, convenience is key! When someone orders an item online, it can often be at the buyer’s doorstep the next morning.
Quick shopping is part of the successful business model Amazon has used over the years.
Web Hosting
A good Web Server is the starting point of a good online store. Factors such as support, bandwidth, cost, and reliability are key features when selecting your hosting provider.
Merchant Interface
This is what you use to manage your online store. It’s needed to have a fancy-looking interface.
A good merchant interface has a balance between usefulness and straightforwardness.
Product Catalog
The product catalog is what your customers see, to find out about the products you’re selling.
That being said, you’ll want to invest the majority of your time and effort in this area.
As with a printed catalog, an online catalog consists of products and pages. The pages establish the look of the catalog and create its structure.
The style in which you design your pages will have an impact on how your customers perceive your store. This is one way you’ll present product information to your customers.
Shopping Cart
The shopping cart will be used by your customers to place orders.
Customers add products to the cart as they choose to purchase them, provide information about shipping and payment method, then submit the order.
The way your shopping cart looks has an impact on customer perception. Also, how it works can make the difference between an abandoned or completed sale.
Payment Processing
Accepting payments is key to any online store, because without it, customers can’t place orders.
In the online payment process, customers enter their payment information, which then gets forwarded to a payment gateway that validates the information and transfers the funds to your merchant account.
There are different online payment services available, as well as payment gateways and merchant account providers.
Shipping
Once you receive an order, you need to gather the products and send them to the customer.
It’s normal for online merchants to get the customers to pay for this cost. However, offering free shipping can be used as an incentive to get customers to buy.
Tax Calculation
As part of your online store, you need to consider paying appropriate sales tax. It depends on the laws where your business is located.
Advertising
For advertising an eCommerce site, make sure it appears in the popular search engines, such as Google, Ask, and Yahoo!
