For founders, there are economically interesting opportunities in the growth market of E-Commerce, i.e. through an online shop. But which is the right shop system? How do I become an amazing Seller? We introduce you to the topic of E-Commerce and E-Commerce Development Company and answer the most important questions about online trading.
What is e-commerce? (Definition)
The term e-commerce, short for electronic commerce or
electronic trade, describes the entire trade on the Internet, including the
purchase and sale of goods on the Internet. E-commerce not only includes online
shopping, but also other areas of e-business, such as online banking or
customer service. In general, however, the term e-commerce is mainly used for
online shopping in general usage.
E-Commerce Development Company: How do they work?
If you wish to start an e-commerce store as a founder, then
you should consider: Do I create my own online store or do I sell my goods
through a marketplace?
Your own shop: With your own online shop you are a lot more
flexible as a founder, but you have to put a certain amount of time or money
into building the shop. The advantage: you are and remain your own boss and
control the entire process. In addition, you do not pay a sales fee to third
parties.
Marketplace: Amazon and Ebay together have a 66 percent
market share in e-commerce. None of the competitors get beyond 2 percent. When
selling through a marketplace such as Amazon or Ebay, you can benefit from its
huge customer base and generate revenue from Day 1. However, the marketplace
operators earn money with every product sold and make important decisions about
the conditions under which they can be sold.
Since both models have advantages and disadvantages, it is
advisable to work with a combination of your own online shop and sales through
marketplaces. You will undoubtedly find faster customers in the established
marketplaces, but most of the money remains in your pocket in the long term in
your own shop. It usually takes years until an online shop is established,
while you can get started right away in marketplaces. Provided you have a
product that is wanted and bought. Products can also be tested very quickly and
easily via a marketplace.
E-commerce to support brick-and-mortar retail
The counter retail has suffered for many years under the
e-commerce. First, e-commerce was ridiculed as a short-term trend, then cursed
by retailers due to its growing market share. In the meantime, however, there
has been a rethink in stationary retail: under the technical term
“multichannel”, classic retailers are no longer just stationary, but
also in e-commerce.
The retailers use different forms of multichannel sales .
Some operate on two tracks and offer their goods separately in terms of price
and logistics – that is, online and offline. In the meantime, however, it has
emerged that a close connection between e-commerce and brick-and-mortar retail
is the most economically effective. In this way, the advantages of classic
retail can be used by collecting online orders, for example, postage-free in
the retail store. Likewise, customers can be lured into the shop, for example,
by special offers that they receive online.
Shop systems for successful
If you want to open an online shop , the first step is to
choose a shop system. You can choose between a shop kit, a plugin for WordPress
or a self-hosted shop software. Since this decision has to be made in the long
term, you should take your time with this consideration and inform yourself
well.
Shop kit
If you have only a few products and the online shop is only
an additional option for your customers, then a shop kit may be recommended.
Such systems require no programming knowledge, are quick to set up and cost
little. However, they lack flexibility and functionality. And above all: the
shop does not belong to you, but to the provider. If he changes his business
policy or closes his offer, your shop is at risk.
WordPress plugin
If you are already running a WordPress blog, you do not have
to start a completely new project, you can virtually “upgrade” the
blog – a shop can be easily integrated using Shopware or open source solutions
for WordPress. A good compromise solution, because then the shop is at least
integrated on its own website.
Shop software
If you want to sell a lot of products and generate larger
sales online, then you cannot avoid professional shop software. A good shop
software can be completely adapted from the design, individual functions can be
supplemented and all important payment methods can be embedded. If you are
technically very fit, you can operate such software at low cost yourself. If
the necessary know-how in the field of web development is missing, then
external agencies are available to take over the complete technical handling.
Online payment systems
According to various studies, the selection of the right
payment method is probably the decisive success factor in e-commerce: If the
payment method preferred by the user is not offered, the purchase is often
canceled. But which are the online payment systems with the greatest popularity
in e-commerce in India?
Other payment systems such as prepayment, immediate transfer
or wallet payment play a subordinate role in e-commerce. The use of all these
payment methods in your shop enables so-called payment service providers, which
act as an interface between the individual payment methods and online retailers
in e-commerce.
These payment service providers have different cost models,
but the following generally applies: a small percentage of each payment
transaction must be given to the payment service provider. Some of the
providers have monthly fixed costs. Choosing the right payment service provider
is an important step in setting up an e-commerce company and should therefore
be done with care: payment systems at a glance.
Advantages of online trading on the corporate and customer side
E-commerce, especially online shopping, of course, offers
both companies and customers numerous advantages:
- Speed: Purchase processes can be carried out and
processed without delay; the product arrives very promptly - Customers can order around the clock and are not
bound by retail opening hours - Convenience: Customers can flip through online
catalogs at home, browse through shops, choose the desired product and pay for
it - Overcoming spatial distances
- Many e-shops offer a 24-hour service; Generally
quick response to problems and inquiries - Better comparison options between price and
product - Customer needs are optimally met; high customer
satisfaction - High efficiency: Online shopping not only speeds
up the sales processes, but also minimizes personnel costs - Low transaction costs: checkout, inventory and
shop systems automatically monitor inventory and cash flow; the establishment
of branches may become superfluous