E-commerce, What Is It And Why Does Your Business Need It
Companies of all sizes have already started trying their e-commerce. It is a transformation in the business model that must be applied correctly for success. However, many companies have already managed to develop the formula and expand their possibilities and sales. We analyze what e-commerce is, why companies should consider this change and its main advantages.
Table of Contents
What Is E-Commerce
E-commerce is an online platform that facilitates the purchase and sale of services or goods through the internet. Also known as electronic commerce or internet commerce, e-commerce is used for the sale of physical products online, but also digital products (for example, the sale of an electronic book or a software program).
In either case, a business transaction occurs facilitated by digital devices and the internet network. E-commerce has quickly become the preferred sales medium for all types of businesses, from large multinational corporations to freelancers, freelancers or SMEs. All kinds of companies can multiply your sales thanks to the internet.
Why Is It Important And Necessary For Business
- E-commerce is already an essential part of the economy: it is estimated that by the end of 2021, 65% of internet users will already make purchases online. Companies that are not present with their e-commerce miss this opportunity.
- Spectacular growth after COVID-19, which has accelerated the growth trajectory of this industry by 4-6 years.
- It is not a fad but a permanent transformation to which businesses must adjust, at the risk of becoming obsolete if they do not adapt.
Advantages Of E-Commerce
Lower Costs
E-commerce eliminates the need for a physical store that users must access to make their purchases. Rental or personnel costs are thus eliminated or minimized. In addition, the work of promoting e-commerce is mainly done through online advertising, which is also less expensive than traditional advertising solutions.
These lower costs, in turn, can translate into higher profit margins for companies or lower prices for consumers. It is also possible to make the e-commerce model compatible with the sale on physical premises. This formula makes it possible to multiply sales without the need to hardly increase efforts (since some links in the supply chain, such as supplier management, have already been resolved).
More Potential Customers
E-commerce eliminates geographical and physical barriers that, in principle, can limit local business models. In other words, the potential audience for e-commerce is global. In addition, through an adequate digital marketing strategy, it is possible to access business niches that could be more difficult to access from the physical location limits.
For example, there may not be enough buyers of handmade embroidery in a very small population to make the business profitable. But the internet opens the doors to finding customers interested in this very specific product throughout or even around the world.
Access To Valuable Data
The tools and software that facilitate the installation of e-commerce also take care, once the transaction is completed, to collect valuable data from the customers of a business. Thus, it is possible to get to know the real customers of a business better and provide them with the type of products and services they demand and personalized offers.
For example, a typical e-commerce strategy involves re-targeting those users who abandoned their shopping cart with products they never purchased. In this case, it is possible to send them an email with a personalized offer to decide to make their purchase.
Availability
E-commerce also eliminates time limitations: the store is available when the user deems it more convenient to purchase. Do you want to know more about the advantages of e-commerce and how to apply it to your business.
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