It’s the talk of future, it’s the tarzan of dot com, it’s not to be ignored! eCommerce is indeed an online giant that has awakened in the last century as a massive cut throat realm. It’s no more a novelty, eCommerce is a business STANDARD!
In order to cater to a larger pool of people, eCommerce is a business many online merchants are hopeful about. Expansion of eCommerce which is primarily buying and selling of goods online has not only benefitted customers but also suppliers. Traditional retail shops have found their ways on the web world and aggressively ensuring their online stores as well. Moolah transactions happen over secure gateways and encrypted channels, so e-commerce is also known to be a trustworthy trading environment. Payments can be made through Credit Cards, e-Checks, Payment Gateways or even through traditional payment systems.
Mark Hayes, head of marketing and public relation shares that “Business owners can no longer afford to ignore the multitude benefits of selling online. With an ecommerce store, your business is open 24 hours a day, seven days a week, 365 days a year. You don’t pay rent or the salaries of sales associates. You don’t have any geographical limitations that restrict your customer base, which means you can sell to any country in the world, any time zone and in any language. Also, with shipping companies like ShipWire and Amazon Fulfillment you don’t need to worry about storing or shipping your product. You can automate nearly every aspect of the business.”
Why is eCommerce such a mammoth success?
- It reaches a much wider audience than what your business could do otherwise. An online business has the potential to garner far more customers than what it could do by having an actual shop down the lane.
- There are no distance barriers and people can purchase anything and everything by the click of a mouse from the comfort of your own house.
- Affiliate marketing is one of the most powerful realms one can indulge in through having an eCommerce business access.
- There is 100% business uptime since eCommerce systems are available for people 24 hours a day, 7 days a week, 365 days a year.
- Transactions can be handled instantaneously without high response time that is much faster than offline systems.
Types of eCommerce
- Business to Business (B2B)
Over 90% of all e-commerce transactions on the web are B2B. B2B enables automated transactions between trading partners for business efficacy. B2B is also known as Electronic Data Interchange (EDI).
- Business to Consumer (B2C)
Business-to-Consumer is considered to be the next big thing on e-commerce and the Internet. It continues to upscale by leaps and bounds rapidly. Leading websites such as Amazon have cashed in the spurt of purchases that happen over the Internet. B2C encompasses direct selling to the consumer over the dot com space.
- Consumer to Business (C2B)
In a Consumer-to-Business Model a consumer offers goods or services to companies and the companies pay for them. Examples of C2B are forms of affiliate marketing, answering online polls for companies, being a freelance developer, etc.
- Business to Employee (B2E)
Companies offer products or services to their employees in an intranet environment in a business to employee model. B2E typically is used for automating employee related work processes. Examples of B2E applications are online insurance policy management for employees, offers and rewards program for employees, etc.
- Consumer to Consumer (C2C)
In Consumer-to-Consumer e-commerce a third party builds a transaction nexus between two or more consumers involved. Online Auctioning can be considered to be a good form of Consumer to Consumer e-commerce model.
eCommerce trends that are making ways in Indian ecosystem, making customers more engaged:
- Rise of M-Commerce – The share of mobile internet traffic counts upto 13% and Indian eCommerce firms are aiming at creating world class mobile platforms that are positioned to capture more market share.
- Bridging three-commerce product experience gap. ‘Virtual try on’ experience is also making many online shoppers thrilled about making online orders.
- Engaging and informative products videos
- Interactive and shoppable videos and images.
- Flipkart started a category Flyte – for selling music online.
- Snapdeal collaborated with Rechargeitnow so that users can recharge their mobiles on the Snapdeal site. Also, after a lot of deliberation, company has decided to enter in the books category, too.
- E-Commerce companies such as Jabong offered solutions with streamlined platform for SMS, Email, chats that can help customers reaching help desk have an enhanced customer experience.
- With the growing popularity of Smartphones and trend of the application stores, ecommerce companies are continuously looking for upgrading Android/iOS/Symbian applications. In Year 2012, eBay introduced interactive iPad app for India. It enables iPad users to shop, browse & compare prices seamlessly.
Cash on Delivery – The big bang Boom in eCommerce
The enormous growth in eCommerce since 2011 largely has been owing to the factor; Cash on delivery. This leveraged customers a sense of security. Customers can now have a look at the goods that they bought before handing over the money. There was no relying on debit or credit cards. Cash on delivery system enabled young buyers to use their pocket money.
Advantages of cash on delivery
- A lot of us are always reluctant about the products shopped online. More often than not, customers are wary about paying for the product unless they actually see it. COD allows them to pay for the product once they see it themselves.
- It is an easier transaction model especially in countries like India where credit and debit cards aren’t a way of life yet or where electronic means of payment aren’t standard. Cash on delivery has expanded the market size and penetration of online stores substantially.
- Since customers pay only when they receive the order, it makes it easier for them to even reject poor quality products. This ensures online shopping portals must sell only high quality products.
This model has changed the dynamics of eCommerce portals and helped them penetrate deep into the market.
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