E-commerce is booming during the pandemic, presenting a big opportunity for entrepreneurs to set up shop and start selling. Here’s what you need to know about this type of business.
- E-commerce has surged during the pandemic, enabling businesses to survive and thrive.
- You don’t have to spend much money on overhead when you run an e-commerce business compared to a brick-and-mortar store, and it gives you access to a worldwide audience.
- There are some inherent challenges to running an online store, such as the increased risk of fraud and high rates of cart abandonment.
- This article is for people who are interested in launching e-commerce business and want to learn the basics.
Selling products and services over the internet took on new importance during the COVID-19 pandemic, as business owners and consumers had no choice but to embrace e-commerce. That shift is here to stay, presenting opportunities for small business owners to thrive online. But before you set up your internet shop, you have to understand how it all works.
Did you know the eCommerce market is expected to reach USD 16,215.6 billion by 2027, at a CAGR of 22.9% during the forecast period of 2020 to 2027? India is a hotspot for eCommerce bloom, thus it is a good time to learn about the nitty-gritty of eCommerce and get going with it. Even if you don’t specifically know what eCommerce is, there’s no chance you could have gone without hearing about it. For starters, the world’s going gaga over eCommerce!
Right from small-scale companies to market giants, everyone is capitalizing on the eCommerce industry, and there’s no going back from here. If it doesn’t make any sense to you, I’m sure this will- Are you interested in selling your products on the Internet and earning a hefty sum of money in return? Well! You’re in the right place. Welcome to the world of eCommerce!
What is eCommerce?
eCommerce (also known as electronic commerce) is the process of buying and selling products or services, making money transfers, and transferring data over an electronic medium (Internet). This network allows people to do business without the constraint of distance and time.
Types of eCommerce Businesses
There are various types of eCommerce business options that you can choose from based on your preferences, capital, and online business model. For different businesses, you have to implement various techniques and strategies. Some of the favorite online companies include:
- B2B businesses
- B2C businesses
- Affiliate marketing business
- Google Adwords marketing
- Online auction selling
- Web marketing
How Does eCommerce Businesses Function?
Online business works pretty much on the same principles as an offline/retail store does. On a broader scale, the whole eCommerce process can be broken down into three main components or work processes:
Receiving Orders
This is the first step where customers place the order through the eCommerce platform (website or an online portal), and the seller makes a note of it.
Processing Order Information
The second step where all the details of the order being processed and completed. It is now ready for delivery.
Shipping
The last step wherein the delivery process is carried out. All the logistics components play a significant role in this step to ensure timely delivery to the customer.
If you get the basics right and conduct your eCommerce business in the right way, you will surely enjoy good profits. Always remember that proper business planning and implementation are the keys to a successful online store.