What Is E-commerce?
E-commerce is when you buy or sell a product or service online. Nearly all products and services are available through e-commerce, whether it be buying books or selling concert tickets they are all considered E-commerce. Operating over four market segments, e-commerce is available to:
● Business to consumer
● Business to business
● Consumer to business
● Consumer to consumer
What Are The E-commerce Website Types?
You need to establish what type of e-commerce website suits your business. As said above, there are four main market segments when it comes to e-commerce.
1- Business to consumer (B2C)
This is when the business sells its product or services directly to the consumer. For example, when you purchase a meal, the business is selling their product and service directly to you.
2- Business to business (B2B)
This is when a business sells its product or service directly to another business. For example, a paper supply company will sell its paper directly to the stationary shops where the consumer will then purchase it.
3- Consumer to business (C2B)
This is when a consumer gives something of ‘value’ to the business, such as writing a review or giving feedback.
4- Consumer to consumer (C2C)
This is when a consumer connects with another consumer to sell on new or used good. This can be in the form of an auction, through an online newspaper or on social media such as Facebook Marketplace or Instagram Shop.
What Are the Advantages And Disadvantages Of An E-commerce Website?
There are advantages and disadvantages to having an Ecommerce website, take a look at the lists below to see if your business will benefit from having an Ecommerce website or not.
● Reach a larger market – Ecommerce allows you to sell your product or service to anyone in the world. Your consumers can make a purchase anytime and anywhere, which is useful as the number of people who purchase through mobile devices has increased over the last few years.
● Wider product selection – Having an Ecommerce site allows you to offer more products online. It also allows you to increase or decrease your stock at any time.
● Low Costing – Ecommerce platforms have become increasingly popular within recent years, which means they are now a lot more affordable.
● Keep an eye on customer insights and analytics – You can track your customers’ purchase and their user experience, which then allows you to make the website more user friendly and know what products sell and which ones don’t do as well.
● Rely Heavily on the website – Ecommerce business might find themselves relying on business heavily through the website. This means that if the website was to crash, you could see some revenue loss due to unhappy customers.
● Non-personal – Having a physical store is always going to be more personal. So it can be challenging to create that same personal touch online.
● Fraud and security issues – As much as we try to protect ourselves from online fraud or a breach in customer data, there is always a risk that hackers will get through. If this happens, it can give your business a bad reputation, leading to loss of business.
So if you are looking to create an ecommerce website, then weigh up the pros and cons and determine whether it is the right choice for your business.