Ecommerce has changed its faces in the long years that it has traveled by allowing the customers to be the king of the business. One can mainly classify the ecommerce business based on the types of goods sold or nature of participants.
The ecommerce site may be exclusively selling physical goods like books, furniture, appliances, gadget etc. It may also sell digital goods like software, ebooks, images, video etc. Services like booking tickets or insurance may also be one of the services provided by ecommerce. Each business has its own risk in delivering the products or services. For example delivering the physical goods can be a challenge for businesses while delivering a digital good may be easy. For booking e-tickets, the availability of the seats, providing refunds etc may be the issue that has to be handled by the ecommerce site.
The main two participants in the ecommerce business include businesses and consumers. The different types of ecommerce based on the participants include B2B, B2C, C2B, and C2C. The social media plays a key role in ecommerce, mainly the Facebook. Similarly, mobile commerce is also gaining importance in this fast growing ecommerce world.
The advantages of ecommerce sites which contributes to increased sales include:
1. No geographical limitations: The seller can promote the product to anyone belonging to anywhere without any limitations of geographical location. The mobile commerce has made it even more convenient in promoting ecommerce sales.
2. Search engine visibility: The ecommerce sites are made visible on search engine result pages which increases its scope to reach more audience for making up a sale. The traffic to the site determines the sales on the site.
3. Lower cost: Ecommerce may be one of the reliable source to sell products/service at low cost with greater discount price offers. It may be cost effective to promote the ecommerce sales via organic search engine traffic, pay-per-click, social media etc.
4. Real estate: The images or video of the site for sale or rent can be advertised on the ecommerce channel such that it is easy for the buyers and sellers to meet under a single roof. It saves more time and money spent on visiting the actual venue which is an advantage for selling places quickly.
5. Low personal requirement: The automation of process like inventory, billing, checkout, payment etc lowers the need for more personals which makes the ecommerce site to be affordable and reliable to conduct business online by managing various process.
6. Locate products: It is easier to locate the products on the site by browsing the ecommerce site quickly and easily with search option based on different criteria like color, size, price etc. Discounts can also be availed easily via online purchase.
7. Save travel time: The introduction of ecommerce sites that gives the customer the comfort to shop from anywhere without any need to visit the actual shop reduces the time taken to travel. The customer can save the amount spent on travel by shopping online.
8. Compare price: The customer can make a detailed analysis about the product by comparing its features and price offered by different merchants online which may assure the customer about buying the most cost effective product at best price.
9. Product information: Ecommerce site allows to display more information on the site without any extra cost or effort. Hence one can provide more information to the customer when compared to physical stores which has limits.
10. Customer information: Detailed customer information can be collected during the registration as well as cookies can be placed on customer system to identify them in next visit. This can be useful for showing other similar products for the customer uniquely for shopping.
11. 24/7 store: The biggest advantage of ecommerce shop is that it remains 24×7 open for the customer. This can improve the sales on the site by receiving orders at anytime at customer convenience. The shop will remain open throughout and there is no need for a personal to handle the checkout which is automatic.
12. Niche market: The possibility of selling more niche products is possible via ecommerce site. A variety of products can be located online as well as it becomes easier for finding rare products or obsolete parts which helps to increase the sales on the site.