From where did you buy your brand new smartphone last month? Or from where did you purchase those branded shoes as a birthday present for yourself? Most likely from the Amazon website or any other similar eCommerce stores, right?
As internet boundaries are expanding and connectivity improves, more and more physical or brick mortar stores are transforming into the digital world. This process gives rise to the massive eCommerce industry that exists in today’s world. However, you must be wondering what an eCommerce website is, and how to create an eCommerce store, and what some proven eCommerce web store development tips are.
This blog will answer all of yours question in the most lucid and informative manner possible so that a non-technical people can understand these subject as well. Along with this fundamental understanding of the business, we have also discussed the advantages of eCommerce, eCommerce website builders, and how to market an eCommerce store to ensure its success.
Let’s start with an explanation of what an eCommerce store is.
What is eCommerce website?
Simply put, an eCommerce website, also known as an electronic commerce website, is a digital world where you can buy and sell any products or services. In other words, eCommerce takes place whenever individuals or businesses buy or sell goods and services online. Others covered by the term e-commerce include online bidding in auctions, internet banking, payment gateways, and online ticketing.
Let’s take a brief look at eCommerce history.
The e-commerce business establishes in 1979, when Michael Aldrich, an English inventor, and entrepreneur, invented online shopping, This event is regarded as the foundation of today’s massive eCommerce industry.
Many notable events occurred in the eCommerce industry in the following years, including the first online purchase in 1994, when a man sold a CD or DVD to a friend via retails shop.
This was followed by Jeff Bezos’ establishment of Amazon inc as a book store in 1994.
Later, with the establishment of the Payment Card Industry Security Standards Council in 2004, online payment processing became more accessible, easy, and secure.
After four years, in 2007, the invention of modern smartphones significantly increased the popularity of eCommerce business.
Types of Ecommerce
As we all know, there are various business models. You can categorize them based on their offerings, such as service or product-based, and you can also categorize e-commerce business types based on the audience class. The four major eCommerce business types are as follows.
Business to consumer (B2C)
Business to Business (B2B)
Consumer to Business (C2B)
Consumer to Consumer (C2C)
In addition to these four primary types, there are two lesser-known and less-used eCommerce business models, namely business to administration (B2A) and administration to business (A2B).
However, in this guide on how to develop an eCommerce web store, we will learn about the four major e-commerce platforms only.
Business To consumer (B2C)
The B2C eCommerce model, as the name suggests, represents transactions between businesses and individuals, B2C eCommerce is the most common business model in both physical and online stores. For example, when you buy a mobile phone or shoe from an online retailer, you are engaging in a business-to-consumer transaction.
Business to Business (B2B)
B2B is a business-to-business transaction that takes place only between businesses. In this type of the transaction, one company provide goods and/or service to another, Business to business sales frequently revolve around raw materials or good that ae repackaged before being sold to customers.
Consumer To Business (C2B)
C2B e-commerce work in the opposite direction of traditional eCommerce in that individual consumer sell their goods or services to business buyers. As a result, consumers contribute products and or services to businesses, collaborate on initiatives, and ultimately assist firms in increasing their revenue.
Consumer to Consumer (C2C)
The sale of goods or services between individuals is referred to as the customer-to-customer model. It is one of the earliest forms of e-commerce. eBay and Amazon are two examples of an online marketplace where people can buy and sell goods.
So these are the 4 major types of eCommerce. It is recommended that you analyze your goal, your products, or your service and then select the best eCommerce model based on the findings.
Why Do We Need eCommerce Websites: What Are The Benefits Of Ecommerce?
Along with all the benefits of eCommerce that we are aware of, such as a convenient shopping experience and a wide range of products, there are plenty of others. Let’s take a quick look at each of the major advantages of an ecommerce website.
People Spend Money Online
According to Statista, the number of online shoppers has increased from 1.32 billion in 2014 to 2.14 billion in 2021. In just seven years, there has been a 55 percent rise! Isn’t this statistic indicative of the eCommerce industry’s bright future? The data also show that people who were previously uncomfortable or afraid of e-commerce shopping are now shifting to digital shopping. This is the primary reason why you, as a seller, should transition to or invest in an eCommerce business as soon as possible.
Allow You To Add Infinite Products
Another advantage of an eCommerce website is that it allows sellers to add hundreds of products to online stores, which is not possible in brick & mortar stores due to space constraints. From a customer standpoint, the ability to add as many products as possible benefits them as well. They gain access to more products, are able to compare and analyze them, and select the best one.
E-commerce is also the best business type for sellers because it allows you to scale your business as needed to accommodate increased customer flow. Furthermore, it is simple and does not incur any additional costs. This means, you can start your eCommerce store on a small scale and then scale it up as needed. For example, if you are starting an apparel eCommerce website, start with only men’s or women’s items and then add children’s or kids’ items if everything goes as planned.
Require Less Human power
In order to manage and run a successful brick & mortar store, you must have a sufficient number of employees. More human resources inevitably result in higher operational costs. However, when it comes to ecommerce, you require comparatively less human labor because most processes are automated. The lower the workforce, the lower the operational costs and the higher the revenue.
Cost Less Than A Brick-and-mortar Store
In the case of a brick and mortar store, you will need to purchase expensive space in a prime location, redevelop it, and give it a fancy makeover to ensure it aligns with the products or services you offer. You’ll also need a large workforce, and there will be several other expenses. In a nutshell, it’s an expensive affair. However, in the case of an eCommerce website, you do not need to spend money on either space or fancy makeovers. This will significantly reduce the budget.
Offer 24×7 Availability
Another significant advantage of eCommerce stores or online stores is that they are available 24/7, which is not possible with brick & mortar or physical stores. It’s a win-win situation for both buyers and sellers. Sellers benefit from the ability to keep the store open and available to customers 24/7, resulting in increased sales and revenue, while customers benefit from the ability to visit the store and make a purchase at any time, whether it is early morning or late at night.
Safe & Convenient Shopping Experience
Last but not least, online shopping or eCommerce websites provide a secure and convenient shopping experience. Users can visit the store whenever they want, compare the items on their shortlist, and place their order in no time. It also saves time and money on the commute. You do not need to take a day off from work to visit the website; you can do so whenever it is convenient for you. All of these factors combine to make eCommerce shopping a safe and convenient experience.
These are the primary advantages of an eCommerce store. All of these advantages highlight that you should contact an eCommerce website development company as soon as possible to have your physical business store converted into an online store.