E-Commerce Guide for Beginners

Are you thinking about investing in the promising and effective e-commerce industry? 

If so, the first thing you need to do is learn more about the world of Internet commerce in order to build a strategy of steady growth. 

And why do I say steady?  

According to data from the Bureau of Labor Statistics, as reported by Fundera, approximately 20 percent of small businesses fail within the first year. By the end of the second year, 30% of businesses will have failed. 

That is why we have prepared an easy guide on what is e-commerce, the types and the benefits it brings to your business.  

Whats is E-commerce

Also known as electronic commerce, it refers to transactions carried out over the internet. If a product or a service is being bought or sold online, they’re engaging in e-commerce. 

And now, with all the evolution of technology, e-commerce can be conducted from any kind of equipment, like computer, smartphone or tablet.  

The term can also describe activities such as online auctions, Internet banking and online ticketing. Anything you can imagine can be sold through an electronic commerce transaction. 

Business models

We can classify e-commerce into three different types based on transactions models: 

B2B (Business to Business) – This model is when one company sells to another. Normally in this type of business, companies offer discounted rates. As a way to motivate their customers.  

B2C (Business to Consumer) – B2C is the most common type. It is when a company sells to consumers who buy a small amount of product or service. For example, a clothing store is a type of B2C e-commerce.  

C2C (Consumer to Consumer) – C2C is where consumers seek to resell an item or service, which was previously purchased, to another consumer. A good example of C2C model is eBay. 

Based on that you will create a whole marketing and commercial strategy. Remember that when browsing online, people have access to several brands and the algorithm is what will show them exactly what they are looking for. 

For that reason, you need to be sure which model applies best to you so that you can invest in the right tools and strategies and reach you target audience. 

E-commerce and its benefits

With the internet becoming an essential requirement for everyday life, the entrepreneur is learning to take advantage of it. In addition, there are different reasons why e-commerce has shown significant growth: 

Global Market – An online store is not geographically limited. It has the whole world as a market. You can go from local customers to global costumers. 

Availability – Another benefit is that your online business is always open. You don’t have to be awake in order for the website to work. E-commerce is unrestricted by working hours and can serve customers 24/7. 

Reduced costs – There is no need to hire sales staff or maintain a physical store. With e-commerce, the only cost you will have is warehousing and product storage. This way, you will be able to save operational costs and offer better deals and discounts to your customers. 

Targeted marketing – With data available, such as an eye on customer’s buying habits, you can define a marketing strategy. You can provide a more personalized experience and find more customers.  

Niche markets – Scaling a niche product to become popular is difficult. With the global market, e-commerce can build highly profitable niche resources.  

Work from anywhere – Running an e-commerce business generally means that you don’t have to sit or stay in an office from 9 am to 5 pm. A laptop and a good Wi-Fi connection are all you need to run your business from anywhere. 

With all this in mind, you will have a well-structured e-commerce and will be able to see your company take higher places and connect with countless customers.