What is ecommerce? Electronic commerce, or “ecommerce” is the process of buying and selling physical items online. For a lot of people, it has already replaced the brick-and-mortar stores as their preferred way to shop. With the rise of mobile devices, ecommerce has also risen. It was estimated that mobile will account for around 70% of all ecommerce traffic by the end of 2018. Not only that, but social media sites like Facebook have further helped ecommerce gain popularity. It was reported that Facebook was able to generate an advertising revenue of $9.16 billion in the second quarter of 2017 alone, and 87% of its overall advertising revenue comes from mobile devices. That is also why a lot of social media sites merge with ecommerce platforms so that a lot of people can integrate ecommerce into their daily shopping habits.
Types of Ecommerce
There are only three primary types of ecommerce transactions you need to know:
- Business to Business (B2B)
This is a type of ecommerce in which one business sells directly to another business.
- Business to Consumer (B2C)
A type of ecommerce in which a business sells directly to consumers.
- Consumer to Consumer (C2C)
This is a type of ecommerce in which one consumer is selling to another via auction or social media.
Why is eCommerce important?
The main purpose of ecommerce for businesses is that it allows businesses to reduce its costs by limiting the expenses of owning and running a physical store. It is considered as a faster and more convenient way than most traditional business transactions. Also, it can reach consumers in areas where geographical barriers would have prevented the expansion of a physical store. Not only that, but it can also allow you to reduce costs by offering more options to the customer as it allows customers compare prices with the entire world, without leaving their homes.
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Creating an ecommerce website can also help businesses increase their revenue by allowing businesses to reach more customers than physical alone. Ecommerce can also provide customers with data sheets that contain all the features and characteristics of the products. Not just that, there is also a datasheet that contains ratings given by other customers who have already bought the product. In this way, potential customers can check whether other customers are satisfied with what they bought. Armed with this knowledge, customers can make informed decisions whether to buy or not.
Lastly, it is also important for businesses to have available information regarding their customers. With ecommerce, they will be able to save the buying habits of their customers. As opposed to a physical store where it's difficult to analyze the items that each customer bought as well as how frequently they bought these items. With an ecommerce website, there will always be a record of the activities of each person who visits the website with Google Analytics. By having this kind of information, the business owners will be able to make their customer relations better.