E-commerce business is any form of business transaction that is done online. Such business transaction like buying and selling of goods online, shopping for a product online, making financial transaction online. E-commerce business is all about a business that does not require the physical presence of the buyer and the seller because is a kind of business that is done on the internet. In E-commerce business there are four models to it or four segment of it.
Segments or Types of E-commerce
1. Business to Business (B2B): this type of E-commerce business involves a business selling to another business. In this model a company places a product in a marketplace and another company purchases it, the purchase are always in bulk because is done by another company that need to resell it to consumers by this it makes recurring purchase and high order value to be possible.
2. Business to Consumer (B2C): this type of E-commerce business involves business selling to consumers. This is seen when you as a consumer buy things from an online store. In this type decision making is much easier and shorter than in B2B also the oder value and recurring purchase is less compare to that of B2B.
3. Comsumer to Business (C2B): this model or type of E-commerce involves individuals or consumers selling to an organizations or businesses. Example of this kind of E-commerce business is freelancing sites where freelancers is paid for doing a job or selling his or her service to a company or an organization. Consumer determine the price in this model of business.
4. Consumer to Consumer (C2C): In this type of E-commerce business is consumers that sells to fellow consumers and what they usually sell is some of the products that they are not in need of or are not using again.
Benefits of E-commerce Business
1. It makes products and services available round the clock: is only in e-commerce business that product and services are available anytime you are in need of it. It is not like every other business that has opening and closing time.
2. Minimal expenses: the cost of starting an e-commerce business is less than any other business because you don't need to buy anything for the start up, what you just need to do is to sign up in one of the e-commerce platform and open your own store there.
3. Global market place: e-commerce business is open for customers around the world meaning that you can buy and sell on an e-commerce platform anytime anywhere. There is always a global market place for e-commerce business.
4. Quick sales: in an e-commerce business there is always a quick sales to any product and services because the products or service is in view to a very large number of customers ready to buy. Unlike normal retail shops which only offer products and service to those around where is located but e-commerce business offers products and services to a large number of customers making it possible to have a quick sales on a particular product or service.
5. Easily accessible: e-commerce business is easily accessible for customers at anytime and anywhere. You don't need to travel to purchase a product from an e-commerce platform you just need online access to do so.
Things to Know When Starting an E-commerce Business
1. You must know the type of store you want to open: the nature of product or services you offer is as a result of the type of store you opened. If you open a book store you are expected to offer books as the only products, you don't open a book store and offer another product all together in the name of diversifying.
2. You must understand the products and it's demand curve: understanding the product you will place in your store will help know the percentage of people or customers that are demanding it. Is only when you understand this that you will know whether the product is what people will demand for a long time or is it a product that will last for a little period of time.
3. You have to also understand that you are not the only one ffering the product or service: knowing this will make you to put a strategy in place in making your product out standing in the midst of many. But if you don't know this you are likely to struggle in the market place.
4. You must know the best branding that is fit for your business: branding matters when it comes to e-commerce business. If your branding is poor it will repel a lot of customers to your business.
5. You must apply a right strategy for marketing in your business: if you don't know the right strategy for marketing in your business it will affect the growth of your e-commerce business.
6. Payment method is also important: if the payment method that your e-commerce business has is only limited to a particular region it will affect the growth of the business because many from other region will like to buy but because the payment method is not in their region they will withdraw from buying.
7. Good customers service: this is also what anyone that want to start an e-commerce business must know. If your e-commerce business does not have a good customers service it will affect the growth of the business..
E-commerce business is one of the business that have a lot of returns if you apply what you need to apply. And you only apply what you need to apply when you know what to apply.
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