Do you wanna make money in eCommerce ……………
It was August 11, and the year was 1994. Around noon that day, Phil Brandenberger of Philadelphia logged into his computer and used his credit card to buy Sting’s “Ten Summoners’ Tales” for $12.48 plus shipping.
That story may not sound too exciting today, but at that time, this particular transaction made history. Why? Because it was the first time that encryption technology was used to enable an internet purchase. Many consider that moment as the first “true” ecommerce transaction.
Needless to say, ecommerce has grown by leaps and bounds since then. BigCommerce cites that ecommerce is growing 23% year-over-year, and according to eMarkerter, global ecommerce sales are expected to top $27 trillion in 2020 — and that’s just statistics for the retail sector.
. Stores that sell physical goods
These are your typical online retailers. They can include apparel stores, homeware businesses, and gift shops, just to name a few. Stores that sell physical goods showcase the items online and enable shoppers to add the things they like in their virtual shopping carts. Once the transaction is complete, the store typically ships the orders to the shopper, though a growing number of retailers are implementing initiatives such as in-store pickup.
2. Service-based e-tailers
The buying process for services depends on the merchant. Some may allow you to purchase their services straightaway from their website or platform. An example of this comes from Fiverr.com, a freelance marketplace. People who want to buy services from Fiverr must place an order on the website before the seller delivers their services.
3. Digital products
Ecommerce is, by nature, highly digital, so it’s no surprise that many merchants sell “e-goods” online. Common types of digital products include ebooks, online courses, software, graphics, and virtual goods.
Examples of merchants that sell digital products are Shutterstock (a site that sells stock photos), Udemy (a platform for online courses), and Slack (a company that provides real-time messaging, archiving and search for teams).
eCommerce Options when selling ………
Another effective way to classify ecommerce sites? Look at the parties participating in the transaction. These typically include:
1. Business to consumer (B2C) – Transactions happen between businesses and consumers. In B2C ecommerce, businesses are the ones selling products or services to end-users (i.e. consumers).
2. Business to business (B2B) – As its name states, B2B ecommerce pertains to transactions conducted between two businesses. Any company whose customers are other businesses operate on a B2B model.
3. Consumer to business (C2B) – Consumer to business ecommerce happens when a consumer sells or contributes monetary value to a business. Many crowdsourcing campaigns fall under C2B ecommerce.
Soma, a business that sells eco-friendly water filters is one example of a company that engaged in B2C ecommerce. Back in 2012, Soma launched a Kickstarter campaign to fund the manufacturing of their product. The project was successful, and Soma went on to raise $147,444.
4. Consumer to consumer (C2C) – As you might have guessed, C2C ecommerce happens when something is bought and sold between two consumers. C2C commonly takes place on online marketplaces such as eBay, in which one individual sells a product or service to another.
5. Government to business (G2B) – G2C transactions take place when a company pays for government goods, services, or fees online. Examples could be a business paying for taxes using the Internet.
6. Business to government (B2G) – When a government entity uses the Internet to purchases goods or services from a business, the transaction may fall under B2G ecommerce. Let’s say a city or town hires a web design firm to update its website. This type of deal may be considered a form of B2G.
7. Consumer to government (G2C) – Consumers can also engage in B2C ecommerce. People paying for traffic tickets or paying for their car registration renewals online may fall under this category.
Now why should you start …………..
#1 BE YOUR OWN BOSS
Work to live or live to work? When you’ve found a career you’re passionate about, the answer to that question seems irrelevant. Owning your own online shop gives you the opportunity to share your passion and experience its impact first hand and that is a gratifying feeling. Just one of the many perks of owning your own site.
#2 EASY CUSTOMER ACQUISITION
Got an idea or have a great product that you know people will just love but unsure if there will be any traction? Customer acquisition could never be easier. Marketing and Public Relations in the traditional sense is important but how you reach and interact with customers has changed. The beauty about owning your own eCommerce business in the 21st century is, entrepreneurs have access to a variety of marketing channels and platforms that connect you to your customers. Best of all they are usually free! It’s easy to showcase your products and share your story on Facebook, Twitter, and Instagram. Here are a more suggestions on how to Creatively Market Your Business.
#3 UNIVERSAL STOREFRONT
One of the cardinal rules in real estate is location, location, location! The location of your storefront can impact the success of your business. The Internet is the prime location for any start up. eCommerce gives merchants the flexibility to sell on/offline and in any country or city around the world. As your business grows your marketplace becomes global.
Some merchants successfully merge the online experience with a new take on traditional retailing. Pop-up shops are “popping-up” all over the place. In subway stations, in the middle of the park, in prime real estate locations but for limited time periods. All you need is a tablet, card reader, and a few sample products and you’ve got yourself a pop up store. These are great because you can directly reach your customers without all the overhead of owning a retail space and best of all, you can choose a space right in the heart of where your customers are located
#4 SIMPLIFIED DISTRIBUTION & LOGISTICS
How will you get your products to your customers? Have you considered drop shipping? What about housing your own inventory? I would be lying if I said setting up an online shop is as easy as 1..2…3.. Often overlooked in the excitement of starting your own business, are the logistics. There are a few tidbits surrounding distribution and logistics that you will need to figure out before setting up your eCommerce shop, and as your business grows you so will your distribution methods. Here’s a glimpse of what you can expect in The Complete eCommerce Cycle.
What’s the first step to launching your very own Startup? Startups often have the challenge of raising enough capital to launch their business but don’t know where to begin. Did you know, you can obtain seed money to fund your business? Crowdfunding platforms like KickStarter, Indiegogo and Techstars, can help get your business off the ground; however, a little due diligence is required. Be sure to study the platforms and select one that suites your business needs.
Is There Opportunity Online?
Customers are shopping online in more ways than one. As technology evolves there is greater need for merchants to discover new ways to connect with their customers. With emerging wearable technologies and sophisticated mobile products, consumers are using technology on a daily basis. This means, shoppers are online and connected more than ever before. This natural progression of technology is shaping the way people shop, influencing how merchants go about attracting new customers.