{"id":2224,"date":"2024-01-31T19:49:30","date_gmt":"2024-01-31T19:49:30","guid":{"rendered":"https:\/\/designindc.com\/?p=2224"},"modified":"2024-01-31T19:49:30","modified_gmt":"2024-01-31T19:49:30","slug":"what-is-e-commerce-and-how-you-can-start-your-e-commerce-business-today","status":"publish","type":"post","link":"https:\/\/designindc.com\/blog\/what-is-e-commerce-and-how-you-can-start-your-e-commerce-business-today\/","title":{"rendered":"What is E-commerce, and how you can start your e-commerce business today?"},"content":{"rendered":"

Over the last decade, e-commerce, or \u201celectronic-commerce\u201d has surged as an avenue for startups, small businesses, and multinational corporations to sell to customers around the world. In 2024 E-commerce will share 20.8% of all retail markets and sales are expected to <\/span>surpass $8.1 trillion by 2026<\/span><\/a>.\u00a0<\/span><\/p>\n

So how does it work?\u00a0<\/span><\/h2>\n

Through personal devices, consumers can access virtual marketplaces to explore and purchase products and services. Once an order is initiated, a complex digital interaction begins. The customer’s browser communicates with the e-commerce site’s server, transmitting order details. This information is then routed to an order management system. From there, it’s dispersed to various databases responsible for tracking inventory and processing payments through systems like PayPal or other banking systems. This intricate process verifies both the availability of the items and the customer’s ability to pay, ensuring a seamless transaction.<\/span><\/p>\n

Phew! Now that we got the technical side out of the way, it’s time to learn how e-commerce can apply to your business.<\/span><\/p>\n

E-commerce websites\u00a0<\/span><\/h2>\n

E-commerce websites serve as digital storefronts in the online marketplace, bridging the gap between buyers and sellers. Like physical shelves, these virtual platforms are where <\/span>products are displayed<\/span><\/a>. It is almost as if your customers are visiting the store. Your website should function not only as the showcase for goods but also as the salesperson at the end of the transaction endpoint, and most companies have a strategy that allows them to <\/span>drive sales through their checkout page<\/span><\/a>.\u00a0<\/span><\/p>\n

E-commerce businesses models<\/span><\/h2>\n

\"Image<\/p>\n

E-commerce comes in many different shapes and sizes. Depending on your specific business needs, one business model may work better than the other. We laid out 8 common e-commerce business models.<\/span><\/p>\n

    \n
  1. Business to Business (B2B)<\/b>: This model involves transactions between businesses, such as the exchange of products, services, or information.\u00a0<\/span><\/li>\n
  2. Business to Consumer (B2C)<\/b>: Here, businesses sell directly to consumers. This model often involves intermediaries for shipping and customer service.<\/span><\/li>\n
  3. Direct-to-Consumer (D2C)<\/b>: In contrast to B2C, D2C involves businesses selling directly to consumers online without intermediaries or distributors.\u00a0<\/span><\/li>\n
  4. Consumer to Consumer (C2C)<\/b>: This type of e-commerce enables consumers to trade products, services, and information with each other online. Platforms like eBay and Craigslist facilitate these transactions.<\/span><\/li>\n
  5. Consumer to Business (C2B)<\/b>: This inverse of the traditional B2C model sees consumers offering products and services online for businesses to bid on and purchase. Platforms like iStock, which sells royalty-free images, are an example of this model.<\/span><\/li>\n
  6. Business to Administration (B2A)<\/b>: This model covers online transactions between companies and public administration or government bodies. It includes a wide range of e-services, such as legal documents, Social Security, and other data.<\/span><\/li>\n
  7. Consumer to Administration (C2A)<\/b>: Here, individuals engage in online transactions with government bodies. This includes a range of activities, from Social Security and tax payments to health service interactions.<\/span><\/li>\n
  8. Mobile Commerce (M-commerce)<\/b>: This refers to sales transactions conducted through mobile devices, encompassing mobile shopping, banking, and payments, sometimes facilitated by mobile chatbots.<\/span><\/li>\n<\/ol>\n

    There are many business models when it comes to e-commerce, so make sure you are strategic in choosing the one (or few) that suit your business needs.\u00a0<\/span><\/p>\n

    E-commerce platforms (benefits and challenges)<\/span><\/h2>\n

    Like with business models, there are also different types of e-commerce platforms.\u00a0<\/span><\/p>\n

    These platforms can be broadly categorized into 4 types, each with its unique features, benefits, and challenges.\u00a0<\/span><\/p>\n