Emerging as one of the fastest-growing categories of the e-commerce market, e-commerce is the sale of products online. While the market is only predicted to grow to a value of $165 billion by 2021. It’s not easy for a new online business to break into the market. There are a number of factors that need to be taken into account before launching an e-commerce store.
E-commerce is the combination of online and commerce. It is the Internet-based sale of goods and services through online channels. The rise of e-commerce has been phenomenal. In the first half of 2018, the e-commerce market grew by a staggering 251% year-on-year, according to research firm Similar-Web.
In the first few years of the internet, it was difficult for new e-commerce businesses to break through. However, today, it is almost impossible for an e-commerce business to take its start-up experience into consideration before the launch of its website.
With the increasing use of Artificial Intelligence (AI) to improve the user experience, it is only getting easier for new e-commerce businesses to take their site experience from “beta” to “stable”.
E-commerce is the future of retail and as a result, it
What is E-Commerce?
E-commerce is the sale of products online. It can be compared to the traditional sale of products in a brick and mortar store. But instead of a full-time employee, the merchant simply uses an online platform to sell their products or services.
E-commerce has grown at a rapid pace in recent years and is expected to continue to grow at a substantial pace in the upcoming years. With this growth, comes a need for an e-commerce platform that is scalable, efficient, and easy to use.
E-commerce platforms are required to have a number of capabilities to allow for the seamless and secure operation of an e-commerce business.
Types of E-Commerce
There are many different types of e-commerce. The most common types include:
Online only: The merchant only deals with clients who buy and/or receive the product online. There is no physical store where customers can interact with the merchant or attempt to purchase the product.
Traditional: In this type of e-commerce, the merchant usually keeps a physical location to inventory and serve customers. They might also have salespeople on hand to help customers select the correct size or style of product.
Traditional and Online: In this type of e-commerce, the physical store is still used for inventory and serving customers. However, the website is the main sales channel and the physical location is no longer needed for inventory or serving customers.
Hybrid: In this type of e-commerce, the physical store will still be used for inventory and serving customers. But the website will also function as a sales channel. In this case, the physical location of the store will be used to inventory and serve customers. The website will only be used for sales.
Benefits of E-Commerce
There are a number of benefits to e-commerce that go beyond the basics of increased sales and customer satisfaction. Here are some of the main benefits of e-commerce:
Low risk of fraud: Because e-commerce transactions are digital, there is very little risk of customers making mistakes when trying to buy products or services. Because of this, e-commerce is a safe and reliable way of buying goods and services.
This means the buyer and seller can interact more frequently and with less stress.
For example, when a customer places an order, the system can automatically determine the correct address and even set up a delivery service. This can improve the overall customer experience and make the customer feel more comfortable with their purchase.
Increased sales: With the growth of the e-commerce market, it is important for small businesses to increase their sales. One way to do this is through e-commerce. This can lead to more sales, more profits, and ultimately, a happier customer.
scalability of E-Commerce
It is very important for new e-commerce businesses to consider the scalability of their business model and the amount of revenue it will generate.
E-commerce businesses need to consider their ability to generate revenue and plan accordingly. The two most important factors for scalability are the number of stores and the number of products.
Conclusion
The evolution of e commerce has been phenomenal. With the growing use of Artificial Intelligence to improve the user experience, it is only getting easier for new e-commerce businesses to take their site experience from “beta” to “stable”.
