Businesses around the world are constantly in search of ways to adapt to changes in an increasingly digital world, establishing an e-commerce strategies outfit has soon become one of such notable adaptive mechanism. E-commerce provides limitless opportunities to business owners, from amassing overwhelming customer base to a slash in the cost of marketing products/services. In this present day and age, it has become imperative for business owners to have a good grasp of the concept of e-commerce as well as have it seemlessly incorporated into their business. The e-commerce industry is constantly increasing and it’s projected to grow by leaps and bounds in the foreseeable future. The more reason why business should tap into rich e-commerce industry.
WHAT IS E-COMMERCE
E-commerce, which stands for electronic commerce, refers to any business transaction conducted over the internet. In a bid to successfully carry out such transactions, money and data are electronically transferred with a third party company acting as an intermediary. Third party companies take on the task of processing data and credit transactions. These third party companies process such transactions with utmost confidentiality, making sure that customer information is safe and secured.
TYPES OF E-COMMERCE BUSINESS MODELS
There are different E-commerce business models utilized by various e-commerce oriented business outfits. Each of these models have their respective benefits and drawbacks, and various business operations can cut across several of these business models. They include :
1. Business to consumer (B2C)
2. Business to business
3. Consumer to business (C2B)
4 Consumer to consumer (C2C)
1. Business to consumer (B2C)
This E-commerce business model is the most popular of the bunch. In this type of business model, there is an exchange of goods and services between the business and the end users over the internet. B2C e-commerce enables consumers to make purchases with ease from the comfort of their homes.
2. Business to Business (B2B)
As the name implies, it involves the sales of goods or services between businesses via the Internet. In this business model, orders are processed digitally, all geared towards improving the efficiency and effectiveness of business transactions. It is vital for every business to be on the look out for emerging trends in business to business e-commerce in order to maximize profitability.
3. Consumer to business (C2B)
This model is a reversal of what we are familiar with. In this type of e-commerce business model, individuals sell products or services to companies. From an holistic point of view, businesses are provided what they need by “consumers”. And as usual, the internet is utilized as a back drop through which this transaction is being carried out.
4. Consumer to consumer (C2C)
Consumer to consumer e-commerce has flourished over the years and has become hugely popular . In this business model, sellers and buyers are both consumers. Selling and buying has never been easier through this e-commerce business model. Although several businesses leverage on the huge potentials of C2C e-commerce by the provision of online platforms to enable consumers find each other. Consumers are then charged a small fee to make use of these platforms. However, C2C e-commerce remains a very cost effective e-commerce model.
IMPORTANCE OF E-COMMERCE
The importance of e-commerce in today’s business landscape cannot be overemphasized. More than ever, in the backdrop of the covid-19 pandemic, e-commerce has proven to be hugely instrumental in the success and sustainability of any business outfit. During the lock down, brick and mortar stores ,without an e-commerce coverage, suffered a great deal. A host of them went out of business. Although, the relevance of e-commerce was clear prior to the pandemic, the covid-19 period made it more glaring. E-commerce offers businesses boundless opportunities ,ranging from increased business exposure to potential for increased sales as well as a robust customer base. Regardless of the size of your business, whether small scale or large scale, e-commerce is of great benefit and your business would undoubtedly reach greater heights on the grounds of seamlessly incorporating e-commerce into your business.
The following highlights why e-commerce is the way to go in this present age and time:
- A WIDER REACH
If you look to reach out to a wider audience, having an online store is the preferred way to go about it. The odds are, as a business owner, there is a higher probability to reach out to a larger audience through an online store than a brick and mortar business outfit. Consequently, the end result is an increased customer base. Hence, it’s advisable for every business to take their trade online as our world today is becoming increasingly digital.
- CONVENIENCE
Having an online store makes your business available round the clock for customers. Therefore, irrespective of customer schedules, they can visit your online store at any time that best suits them. Nowadays , people prefer making orders which would be delivered to their doorstep, from the comfort of their homes. An online business makes it possible to meet the need for a convenient and straightforward shopping experience on the part of consumers.
- LOWER RUNNING COST
It is relatively less expensive to sell products and services through an online store than an offline store. Expenses such as inventory cost, salary, store rent, security cost is almost non-existent as far as an online store is concerned. But that is not the case for physical stores, which are often associated with such recurring cost. Consequently, it’s a lot cheaper to run an online store. Online business owners, as a result , are in a better position to sell their products at cheaper prices. Therefore, E-commerce is important because it reduces running cost and thus customers are able to purchase products at cheaper prices.
In a bid to help businesses and individuals take advantage of the boundless opportunities provided by the e-commerce industry, we will be conducting a training to thoroughly teach you about e-commerce. This training will serve to enlighten and educate you on how to successfully set-up an online business. Through this training, You will also learn about e-commerce marketing strategies and the best way to implement these strategies with the use of valuable marketing channels. In a nutshell, at the end of our e-commerce training, You will learn all there is to know about e-commerce. Check it out with our consultant today at here.