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5 Things to know about e-Commerce before starting your own business

Thinking of launching your own online store?

Before you do, here are a few important things that you’ll want to know about ecommerce.

1. How e-Commerce works

Ecommerce is similar to traditional commerce in that it involves the buying and selling of goods and services. The difference is, of course, that these transactions occur online rather than at a physical store.

Shoppers visit your online store and browse for products or services. When they want to purchase an item, they’ll add it to their shopping cart on your site. To complete the order, they’ll go to your checkout page, where they’ll select their payment method and add their shipping and billing details.

After the payment is processed, your customer will see a message that the transaction went through, and they should also receive confirmation via email, with their order details included. You’ll then package the order and ship it, notifying the customer. Once the order has been delivered, the transaction is complete.

2. Advantages of e-Commerce

Ecommerce offers entrepreneurs a variety of advantages over traditional commerce.

To start, the costs of opening and managing an online shop are generally much less than those for a brick-and-mortar store. When you have an ecommerce website, you don’t have to worry about paying for rent and utilities, which are required when you have a physical storefront.

In addition, ecommerce allows you to reach a greater number of potential customers. With traditional retail, you’re limited to the physical location of your store, but you can sell to shoppers 24/7 and all over the world with an online store.

Furthermore, as your ecommerce business grows and market trends evolve, it’ll be easier to scale and make changes. With no restrictions on physical space, you can add new products and adapt the services you offer to better accommodate your customers.

3. Disadvantages of e-Commerce

It’s important to be aware that ecommerce also comes a with a few disadvantages.

To begin, there’s lots of competition. Regardless of what you sell, you’ll likely need to put in a decent amount of research and effort to figure out how to make your brand stand out from the crowd.

What’s more, you don’t get the same kind of face-to-face interaction with shoppers in online sales that you do with traditional commerce. Building connections with your customers must be done in other ways, such as by providing excellent customer service, an enjoyable unboxing experience, and personalized recommendations.

Despite these disadvantages, the flexibility and ease of getting started in online sales continue to make ecommerce appealing to entrepreneurs all over the world.

4. E-commerce business models

There are numerous ecommerce business models that exist today. Here are four of the main options:

  • Business to consumer (B2C): The most common model in online sales, B2C ecommerce is when a business sells products or services to an individual. Examples include sites like Amazon, Spotify, and Walmart.
  • Business to business (B2B): With this model, a business sells to another business. B2B ecommerce can involve the sale of products, such as office supplies, or services, such as social media management.
  • Consumer to consumer (C2C): Here, an individual sells goods or services directly to another person. An example of C2C ecommerce is when people list items for sale on Craigslist or Facebook Marketplace.
  • Consumer to business (C2B): C2B ecommerce transactions involve the sale of products or services from a person to a business. A good example of this is brands hiring influencers to promote their offerings on social media.

5. Key features of an ecommerce site

To achieve success in online sales, your ecommerce site should be easy for visitors to navigate and visually appealing to make them want to stay on the page. Each product or service you sell should be accompanied by a detailed description, and your customers should be able to complete the checkout process in just a few simple steps.

Don’t forget that mobile shopping is becoming increasingly popular. For this reason, optimizing your site for mobile devices is a must these days!

Finally, a great ecommerce site isn’t just about the customer but also the business owner. Your online store should be easy to create and manage. It’s therefore advantageous to use a high-quality ecommerce solution like WiziShop, which provides a variety of tools and features to boost conversions and help you grow your business.