Today, eCommerce or electronic commerce is an ideal industry for people who have some type of business. It is also a good opportunity for those who enjoy the advantages of working online. In fact, according to a study carried out by a renowned consulting firm, the rate of growth of e-commerce worldwide is more than 20% each year.
The same study indicates that in Latin America the average is 10% growth, but according to experts, these numbers can reach up to 64% in the coming years. Furthermore, in an article published by Business Insider magazine, it was concluded that Latin America is one of the regions with the highest growth in eCommerce globally.
Without a doubt, this can confirm that people have changed their consumption habits. Therefore, e-commerce becomes a good option when not only creating a business but also crossing new borders. Certainly, this type of trade has become very popular in recent years. Indeed, consumers have discovered that the internet can offer a world of possibilities for safe shopping and selling.
It is important to note that every eCommerce is an online store, but not every online store is an eCommerce. That is, there are other models of electronic commerce, such as the marketplace. Next, we will know a little more about this type of business so that you better understand the differences.
What is E-commerce?
An e-commerce store (short for electronic commerce), is a platform where you can buy products or services online. In simpler words, an eCommerce store is simply an online store.
Many large retailers such as Flipkart, Amazon, and Asos are some of the examples of eCommerce giants and many companies also offer offline services such as Falabella hands into E-commerce.
E-commerce vs marketplace?
In general terms, the marketplace works as a virtual showcase where you store products from different companies. In short, the available products do not belong to the same store, they are only displayed on the platform. This type of eCommerce carries out the payment intermediation but does not take charge of the guarantee or delivery of the product.
For some entrepreneurs, this model can work very well, since they do not need to have their own website. In this case, all you have to do is upload the products on the chosen platform and promote them. The other advantage of the marketplace is that the authority of the companies that provide the products that can be used to attract more customers.
For example, if someone wants to buy some shoes, they will have an easier time finding the Nike store than your website. This happens because you do not have the autonomy to define how your buyers can see your products. Taking this into account, the marketplace may be the best option for sellers of generic products. In this way, they avoid competition and the work they have to do when creating their own site.
Still, nothing prevents you from start an online store. Also, if you want to have successful e-commerce, you must remember that it will depend on your time and the money you are willing to invest in.
Types of eCommerce
There are four business models dedicated to e-commerce. These can be used both in traditional eCommerce as well as the marketplace.
B2B (Business to Business)– It applies to companies that create e-commerce to sell products to other companies.
B2C (Business to Consumer)- It is represented in most electronic stores since it is a model that offers its products to the final consumer.
C2B (Consumer to Business)– With this model, the consumer makes his service available to companies. For example, suppose you are a freelance graphic designer and advertise your services through pages like Workana.
C2C (Consumer to consumer)– C2C understands the relationships between consumers. Generally, they are seen in forums and online markets such as Mercado Libre or eBay.
Pros and Cons of having an eCommerce
There are many advantages that you can have with an eCommerce. Next, we will show you what they are:
- Flexibility: With a tent, you can guarantee more time to enjoy. In addition, you can work from the comfort of your home.
- Autonomy: When you create an online store, you can make the design decisions that best suit your product.
- Low investment: Generally, an electronic store is less expensive. You just have to make sure you buy a domain and a hosting. Luckily, the plans for these are quite inexpensive.
- Scalable sales: While for physical stores a deadline is needed to reach people and make sales, in eCommerce the strategy is more dynamic. Indeed, your consumers can make purchases from a single ad, you can even make sales simultaneously.
Like any company, an eCommerce also has its disadvantages, especially when it comes to physical products. For that reason, it is important to consider the pros and make sure whether the investment is worth the success or not.
- Products in stock: Having a variety of products to meet consumer demand can be a problem. However, you need to know which product will sell the most. But, perhaps the space in your house is not big enough to store everything. Fortunately, it is not something we should worry so much about since you can sell consigned products. Another alternative is to create a store with custom products. Currently, this strategy is widely seen in the sector.
- Competition: You must remember that you are not the only one who has a digital store. In fact, the same products you sell can be sold by your competition. Luckily, if you create a good marketing strategy and sell new products, you will not have this problem.
- Deliveries: Your consumers may come from other countries. Perhaps you do not have the necessary tools to dispatch your products outside your geographical area. So, try to offer good customer service.
The step by step to create your eCommerce
If you are thinking of creating an online store and do not know how here are some tips that you can follow:
- Buy the domain and hire a hosting service- Your domain must be related to the product you will sell. In addition, it has to be an easy name for your users to remember. After that, you have to make sure to hire the best eCommerce hosting service that will allow you to save all the material. Many companies offer affordable plans, be sure to do a search and hire the one that best suits your needs.
- Choose an eCommerce tool– If you don’t know how to program, the best thing you can do is use online tools. Some platforms have the necessary functionalities to get started. For example, Shopify offers smart solutions ideal for you. You can investigate other ones and see which ones suit your needs.
- Select payment Mode-. It is important that you select the payment method for your products. In the same way, it is essential that they offer several options to pay. Do not keep just one.
- Choose the type of product- This is one of the first steps you should do before creating your store. Physical products are the most common choice, as we are used to this type of market. On the other hand, digital products have more to do with educational products, such as ebooks, guides, etc.
- Create a logistics- One of the things that consumers fear the most is that their products will not reach them. For this reason, it seeks to create a distribution logistics that meets the needs of buyers. It is also important that you make a good choice of the means of transport you are going to use.
Trends to consider
Every day, the eCommerce industry is changing, and, for that reason, you must be aware of the possible trends that can be implemented. In this section we will talk about some of them:
- Responsive e-commerce: Certainly, most people access web pages through their desktop computers. However, a large part prefers to use smaller devices, such as tablets or phones. Taking this into account, it is a good idea that your designs fit any type of device.
- New payment methods: Many companies, like Apple, are testing new ways to pay for their products. The idea is that users do not have to use their credit cards. These would be replaced by fingerprints or other identification. It is clear that the main objective is that customers have greater security.
- Accumulated points programs: Today, there are many platforms that offer this type of option. Users do a certain task and collect points that they can later exchange for products.
- Own applications: Own applications is also a great idea, as it can make your company much more interactive and easier to access.
- Chatbots: Artificial intelligence is essential today. Not only does it help you manage communications with your consumers, but users will feel more cared for.
Tips to Increase your sale
It is good to recognize that price does not always motivate buyers to buy. In fact, if the product has added value and solves the problem, people won’t mind paying a little more. On the other hand, a bad shopping experience can ruin your customer relationship. For that reason, we have some tips that can help you increase your sales.
- User-Friendly Menu. If the buyer does not find what they want quickly, they will probably give up. For that reason, try to have an easy to navigate the page.
- Put featured products. Try putting the best selling items, as it will allow you to reduce time and provide a greater experience.
- Create sponsored posts. According to studies, more than 60% of consumers look for recommendations on the Internet before buying. For that reason, it is pertinent that you prepare publications on networks or contact influencers who promote your products.
- Have good descriptions. The more information you provide about your product, the better the purchase results will be. Also, it is important if you sell digital products since they do not touch.
- Show the evaluations. Product evaluation can trigger your sales, so be sure to make them visible in your eCommerce. According to the Baymard Institute, the number of written evaluations has more weight in the purchase decision.
- Follow the trend. On the Internet, everything changes very quickly, for that reason it is essential to be attentive to the market, and mainly, to know the main novelties in your segment. With this in mind, it’s a good idea to monitor your competition to see how they engage with your target audience and focus on the downsides not addressed by large retailers. These alternatives can have a quick financial return since the competition is less.
- Create valuable content. To sell more, you will have to have a multichannel strategy that includes social networks, emails, and blogs. But it is not enough to be present in all media, entrepreneurs have to offer quality content, which really adds value to the buyer’s routine. For this, it is necessary to know very well who your followers are and to know what kind of matter they are interested in.
- Make attractive copies. The term copy is the abbreviation of the English term copywriting, whose meaning is writing. This is the ability to write a text with the objective of convincing the reader to take action.
- Encourage users to share your content. Today, social media helps generate huge amounts of traffic to your website. One way to do this is to provide users with CTA buttons to share your information.
Make consumer rights clear. Although the electronic market is growing, insecurity continues to be a factor that prevents many users from buying online. To defeat this objection, make clear all the policies that protect the right of your consumer, such as:
- Exchange and refund policy.
- Frequent questions.
If you want to create e-commerce, you have already seen in this post the first steps to get started. But it is important to know that to differentiate yourself from the rest you will need to go far beyond the obvious. This means that you must constantly study your market to offer a high value-added service to your audience.