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By Nelly Murad
Special to the Financial Independence Hub
E-commerce businesses are rapidly thriving. In fact, the 2019 statistics according to US Census Bureau News reveal that: “Over the past ten years, the percentage of retail sales in the U.S. that have come from e-commerce has increased by nearly 300%, from 3.3% to 9.7%.” Moreover, the sales coming from ecommerce sites are predicted to increase around 78% by 2020
For the past decade, the number of people worldwide who patronized e-commerce has increased tremendously. Following the latest survey, 21.8% of the population worldwide now shopped online. And in 2021 retail e-commerce sales worldwide are expected to reach US$4.8 trillion.
These stats show that more people now prefer to transact online than going to a traditional store. And it’s no wonder, owing to the fact that e-commerce has transformed the way we shop: in the most convenient and innovative way. So, if you are not well adept about the specifics of running an ecommerce business or you are not even sure what it is, then keep reading.
Basically, the term e-commerce is the purchasing and selling of goods, which includes the transfer of money and the data needed to complete the operation with the use of an electronic device and the internet. It is simply an activity where business transactions — the buying and selling of goods and services — occur over the internet.
Currently, there are five recognized e-commerce business models:
- Business to consumer (B2C)
- Business to business (B2B)
- Consumer to business (C2B)
- Consumer to consumer (C2C)
- Government / Public Administration Ecommerce
Unique features of e-commerce
The most popular characteristics of e-commerce are: its ability to establish relationships, ability to exchange information, pre and post-sales support, among others. Interestingly, according to UKessays, ecommerce has seven unique features. These are:
- The ability to transact anywhere at anytime. For example, the ability to order goods online, pay bills or deposit money, which in ecommerce, eliminates the need to go to a physical store.
- Global reach. It permits commercial transaction easily performed across other countries, which is less tedious and inexpensive.
- Universal standards. The internet has adopted universally accepted standards on how information is presented in order to level the playing field for businesses, specifically about obtaining information on market entry cost and the price of the item.
- It refers to the amount of content found on the website such as written content and links that contribute in advertising and branding of merchant’s products, and are useful to enhance customers’ experience.
- Interactivity. It affords businesses and customers to communicate. Ecommerce businesses have the ability to connect to their customers on an emotional level coupled with their effort to establish trust and confidence.
- Information Density. It refers to the amount and quality of information found in an ecommerce website like text, pictures and videos.
- Personalization. Merchants can easily change their products and services according to user preferences. The ability to customize marketing content to cater specific user needs is also possible.
Blueprint for starting eCommerce business
It has never been easy to start an ecommerce business because it requires hard work and right decisions to put it up. Here is a comprehensive guide before starting your own eCommerce business:
1.) Choose a product (or service)
This is perhaps the most challenging part of starting your ecommerce business. To find the right product (or service): explore the best places to find ideas; evaluate your idea by validating it and its potential or target market. You should also think about how to obtain it (or do it), along with the pros and cons.
2.) Prepare and do your research
Conduct competitor and market research so that you’ll be able to identify what makes your business unique or find out its key strengths and possible weaknesses. Write a business plan as this will serve as your roadmap to assist you in bringing your thoughts and ideas altogether.
3.) Set up your Business
The first step in setting up your business is, obviously, naming your business. Once you decide on the name of your business or brand name, choose a cohesive domain name for your website. Then create your company’s logo, which should reflect best what you offer and your brand’s personality.
Don’t forget the search engines too. Optimizing your e-commerce site for SEO will help you have a better page rank on search engines.
4.) Pre-launch
A crucial part of your preparation in launching your new e-commerce business is to take note of the shipping and fulfillment elements. Your shipping strategy must be established before proceeding to launch as it can make or break your business. You should also device a plan to measure your performance by identifying key indicators.
5.) Post-launch
Although this can also be done prior to the commencement of your business operation, marketing your store once you’ve launched is invaluable. Digital marketing will help drive traffic to your site, which can then translate to conversions and ROI.
You can start by running email marketing campaigns as it is the most valuable compared to the other types of digital marketing. But before launching any email marketing campaigns, you should do an email verification to ensure that all contact emails are real and active. An email list that is verified by special tool produces a magnified positive return.
Leading the digital marketing and communications for EmailOversight, with more than 5 years of experience in email marketing, Nelly Murad is dedicated to helping customers make the right decisions. Being a graduate of the University of California, Los Angeles, her talent for managing digital content is impeccable and her definition of success is measured only when customers are happy.
