What is ecommerce

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What is Ecommerce
Ecommerce and its Trends
Ecommerce or electronic commerce are basically
the transactions conducted through the internet.
Every time individuals/companies buy or sell
products and services online they engage in
ecommerce. The term ecommerce also incorporates
activities like online auctions, internet
banking, payment gateways, online ticketing and
more. How ecommerce came to be? The first
ecommerce transaction was made in 1994 by a guy
named Phil Brandenberger when he used his
Mastercard to buy Stings Ten Summoners Tales
via the internet for 12.48. This particular
transaction enlightened the world that the
internet is open for ecommerce transactions.
For the first time encryption technology was used
to commence an online purchase. As a matter of
fact, ecommerce has grown manifolds ever since.
The rise of ecommerce giants like Amazon and
Alibaba in the mid 90s changed the face of the
retail industry. They largely capitalized on the
global internet penetration and digitalization
that resulted in the decline in sales for many
businesses. The growth of ecommerce has also
resulted in the migration of the retail
workforce. The U.S Bureau of Labour Statistics
has stated that from 1997 to 2016, employment in
the ecommerce sector almost increased by a
whopping 80 and predicted that the number of
ecommerce jobs will keep on increasing and reach
around 450,000 in the US by 2026. Hence, its
evident that the highly competitive ecommerce
sector will keep on transforming the retail
industry and influence customers behaviour.
However, starting an ebusiness nowadays seems
like a great idea for various savvy
entrepreneurs. Now let us find out more about the
ecommerce industry how it came about, what
types of merchants exist, and what platforms
allow online selling for different countries. We
will also shed light on some ecommerce success
stories and loopholes to give you an idea of what
it takes to succeed in this ecommerce
industry. So, if you wish to begin an ecommerce
website or youre already running an online store
and just want to dive into ecommerce industry,
youll find lots of nuggets in this blog. The
Significant Ecommerce Statistics for 2022 If you
are willing to do online business, its vital to
be aware of the trending ecommerce statistics.
Also, experts predict that retail ecommerce sales
will reach 4.13 trillion in 2022.
95 of all purchases will be by ecommerce by
2045. The worlds fastest-growing ecommerce
market is China with an estimated revenue of 672
billion in 2017.
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The US has the highest ecommerce penetration
rates, with 80 of all internet users making at
least one purchase. The top reason why
people do online shopping is that they can buy
anything, 24/7. 43 of ecommerce traffic
comes from Google search (organic).
Slow-loading websites see an abandonment of
75. 35 of Google product searches are
converted into purchases in 5 days. 51 of
digital buyers shop via their smartphones.
Buyers are likely to spend more if they are
provided with free shipping. 93 of online
buyers think that the visual appearance of an
online store plays a vital role in their
purchasing decisions. 80 of online buyers
dont buy from ecommerce sites that have complex
return policies. 85 of all products
purchased through social media platforms come
from Facebook. Mobile ecommerce retail sales
will reach 3.5 trillion by 2022. 42 of
online shoppers prefer to pay with a credit card
in 2022. Online stores with an active
presence on social media platforms have 32 more
sales. 55 of all online buyers have an
impact on their buying decisions due to reviews.
Types of Ecommerce Businesses
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There are various ways to classify ecommerce
websites. These can be categorized according to
the products or services that they sell, the
parties that they transact with, or even the
platforms on which they operate. Classifying
ecommerce businesses according to what they
sell Lets start with the products and services
sold online. Heres a list of ecommerce merchants
according to what they sell. 1. Physical Goods
Seller These are typical online retailers having
clothing, furniture, tools, accessories, and
other physical goods. Potential customers can buy
through online stores by visiting the stores
websites, adding items in their shopping cart,
and making a purchase. Once the buyer makes a
purchase, the store delivers the products at the
doorstep while there are some online stores where
buyers make an online purchase but go to the
store themselves to pick up the products. Some of
its examples are Warby Parker, Bonobos, Zappos,
etc. 2. Service-based e-tailers As a matter of
fact, services can also be purchased online.
Everytime you hire consultants, educators
freelancers via online platforms, youre dealing
with service-based e-tailers. The service buying
process depends on the merchant. Some allow you
to buy their services directly from their website
like Fiverr.com, a freelance marketplace. People
who want to buy services from Fiverr must place
an order on the website before the seller
delivers their services. While some service
providers ask you to get in touch with them to
determine your needs. Like Blue Fountain Media
creates digital strategies for large clients,
asks clients to fill in an online form first
where they should describe their business
needs. 3. Digital products E-transactions take
place by the internet and the products are called
e-goods. Some examples of retailers that sell
digital products are Coursera and
Audiobooks Ecommerce on the Basis Of Parties
Involved 1. Business to consumer (B2C) In B2C
ecommerce model refers to a transaction between
businesses and individuals. B2C ecommerce is the
most common among physical and online retailers.
Some of its examples are Nike, Macys, IKEA, and
Netflix.
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2. Business to business (B2B) As the name
suggests, B2B ecommerce model refers to a
transaction between two businesses. Here, one
business offers the other with different products
and/or services. Some of its examples are Slack,
a platform for communication between remote
businesses and Xero, a cloud-based accounting
software for businesses. 3. Consumer to
business (C2B) The C2B business model refers to a
transaction in which individuals create value for
businesses. Consumers offer companies with
products or services, co-operate on projects and
help businesses grow their profits. Like
Freelancer, a platform which connects remote
workers and companies. 4. Consumer to consumer
(C2C) C2C ecommerce occurs when two parties are
consumers who trade with one another. Some of its
examples are eBay and Craigslist, these are
online marketplaces where individuals buy and
sell products. 5. Government to business
(G2B) The G2B ecommerce models occur when the
government provides companies with goods and
services. Government procurement, data centres,
and e-learning are all examples of G2B
ecommerce. 6. Business to government (B2G) The
B2G model refers to companies and businesses that
provide goods and services for the government.
For example, OpenGov is a company that offers
governments cloud-based platforms for
communication, reporting, and budgeting. 7.
Consumer to government (C2G) Every time consumers
pay taxes, health insurance, electronic bills, or
request information concerning the public sector,
theyre engaging in C2G.
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What are the best ecommerce platforms? Retailers
can build online stores where they display their
products or services or both. Having an online
storefront is one of the best straightforward
ways to run an ecommerce business. There are a
number of ecommerce solutions and choosing the
right fit for your business depends on your
budget, preferences, and requirements. Below
weve listed the best ecommerce solutions
currently on the market. Shopify Shopify
powers over 2,921,565 websites around the
globe. Shopify has 21 of the ecommerce
market share. Shopify allows users to build
effective online stores and scale their business.
Having a user-friendly and tons of templates,
this platform offers 100 payment gateways,
flexible shipping rates, automatic taxes, etc.
Shopify enables social media integrations, is
packed with built-in SEO features. Best for
Small businesses looking for an all-in-one
ecommerce solution. Magento Magento has
powered over 772,000 websites around the world
till date. There are over 5,900 extensions
that integrate with Magento.
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Magento is a very flexible ecommerce solution
used by medium sized businesses. It has robust
features which allow retailers to personalize all
aspects of their online store like custom
templates, extensions and modules. Best for
Brands looking for a highly customizable
ecommerce solution. Salesforce As of 2020,
the platform has 150,000 active users.
Salesforce was awarded multiple times with
prestigious recognitions like the GSMA Glomo
Award - Best Mobile App for Business, the 2017
DMN Awards, and the AOTMP Mobility Awards,
more. One of Salesforces strengths is that its
built with omnichannel retailers in mind with
features that allow merchants to easily sell
across physical and digital storefronts. Best
for Large businesses that need a fully-fledged
and scalable CRM software. Oracle Commerce
Most companies that use Oracle Commerce are
in the retail, computer software, and information
technology niche. Oracle Commerce holds
0.36 of the ecommerce market share. Oracle
Commerce is a powerful ecommerce solution for
both B2B and B2C retailers. It is packed with
versatile features that enable you to sell
complex merchandise. Best for Growing businesses
looking for a flexible and scalable ecommerce
platform. WooCommerce WooCommerce powers
over 3,876,748 live websites. CodeCanyon
sells over 1,773 plugins designed to integrate
with WooCommerce. WooCommerce is one of the
biggest open-source ecommerce platforms. Designed
to integrate with WordPress, WooCommerce has a
number of templates that can help you build a
unique online store. Youll get all vital
features including unlimited products,
unrestricted customization, order management, and
free shipping. Best for Small businesses that
have a website powered by WordPress. BigCommerce
BigCommerce powers over 150,000 websites
around the world. Pandora, a popular
jewellery retailer, is built with
BigCommerce. BigCommerce is a popular ecommerce
solution that provides online retailers with a
robust online store builder for creating a fully
functional online store and selling numous
products. One thing that is unique about it is
that it has features like shipping, reporting,
and product and order management.
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Best for Growing businesses that want to
leverage on multi-channel selling.
Volusion
The total amount of purchases made through
stores built with Volusion reached 13.8 million
in 2018. There are over 11,000 websites
powered by Volusion in 2020. Volusion allows
merchants to create online stores, showcase their
merchandise, and take payments all on one
platform. Volusion comes with standard features
like a site builder, shopping cart software,
marketing tools, etc.Best for Small businesses
in need of easy-to-use ecommerce platform.
Compiled
By Aarshi Sharma Tagged EcommerceEcommerce
Product Data Entry ServicesEcommerce virtual
assistantSEO Specialist VA