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What is e-commerce? The Advantages And Disadvantages

E-commerce stands for Electronic commerce and is defined as the activity of buying and selling online. Nowadays goods and services are offered via the web to offer consumers quick and easy access to a store’s catalog of items. Users can then purchase orders online, have their payments processed, and in turn, will receive their purchase within a week delivered to their home.

E-commerce has exploded in the past years and has had many technological developments, including real-time shipment tracking. Anyone from a personal artist to a multi-billion dollar company can participate in E-commerce, it is the most effective way to sell your goods.

What are the 3 types of e-commerce?

Business to Business – B2B

Is the practice of selling from a business to a distinct business anywhere in the world. These transactions tend to be labeled as wholesale because of the high volumes of goods or services transferred.

Business to Consumer – B2C

In contrast, sells from businesses to specific online consumers. The majority of all e-commerce is centered around this system.

Consumer to Consumer – C2C

Is a system like eBay, a user can upload images and a description of the product they wish to sell and another can browse those items from the comfort of their own home.

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Advantages of eCommerce

  • One of the most prominent advantages of e-commerce is access to a much larger audience. Your customers can place orders from anywhere at any time. 
  • Track your most sold products and gather customer analytics to meet market demands. Nowadays, it’s important to respond fast to very volatile consumer trends.
  • E-commerce websites require less of an investment to set up. You save yourself the overhead costs that come with opening a store.
  • Chance to get personal with your customers via feedback forms and rating systems. The better your reputation as a seller, the more customers will return to your site.

Disadvantages of e-Commerce

  • Users need an internet connection to access your website. This is becoming less of a disadvantage as the spread of wifi availability is increasing every year.
  • Fraud and Security issues are widespread. While there are many things that you can do to mitigate these issues, there are still many companies that face fraud cases every day.
  • Product and Price comparison makes the competition more aggressive. You also need to compete for the best spot when it comes to ranking in Search Engines.
  • Users can’t touch or feel your product. This may be off-putting to some consumers. You have to try very hard to deliver the experience of owning a product through the computer.

What is the best eCommerce platform?

We recommend Shopify, some of the best features they offer is a free 14-day trial, with no credit card required. They offer a large selection of customizable templates that will suit your online store. They take care of things like marketing for you as well as secure payments and transactions. Need more? They also offer secure shipping.

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It is a super efficient platform that is trusted by millions of users. It is 100% cloud-based and hosted, so you can relax. Access your shop via your mobile device too! All of their templates have taken responsiveness into mind.

Customize the look and feel of your online store by using their easy-to-use store builder and choose from hundreds of themes. They offer 24/7 customer support as well as the Shopify Expert Marketplace where you can hire a certified Shopify expert if you want to take your site to the next level.

How do I start an e-commerce business?

Starting an eCommerce business has never been easier. With hundreds of online websites to help you start, which one do you choose? Whatever your choice, keep in mind these considerations when starting an ecommerce business:

  1. Find a good product to sell – This is the base of your service, providing goods that your customers will be happy to receive for what they pay for. Remember, they are paying delivery fees as well so it’s always important to make sure they are happy. 
  2. Evaluate your idea – Now that you have a product in mind, think about how you would go about selling this in terms of pricing and clients. Do some research, and consider whether it is a good time to sell this product or not.
  3. Obtain your product – This is the step where you look for a manufacturer and establish a way to continuously receive merchandise. 
  4. Sell your products online – It’s time to go out there and look for that first customer. While a marketing strategy is highly recommended it is not required for you to start an e-commerce business. At this point, it would be smart to consider developing one, but remember the reputation of your products dictates a lot of what the crowd thinks about you.

Is Amazon an e-commerce store?

Yes. Amazon engages in all three levels of eCommerce, Business to Business, Business to Consumer, and Consumer to Consumer. They provide independent platforms for businesses and individuals looking to set up their ecommerce stores.

They provide solutions for listing products on the Amazon catalog, as well as shipping and promoting your product. Their main platform is also how they provide their goods to individuals. 

How important is the role of e-commerce in today’s era?

E-commerce is an essential part of today’s lifestyle. It has broken the huge barrier of having to travel to the store to pick up products that you already trust will be of good value. But now, you can have someone deliver them to your house.

This is a big game changer if you are incapacitated, have a disability, It has also influenced big businesses, it has drastically improved sales because users can log in from any time and anywhere.

The development of eCommerce platforms has been massive over the last years and it is only going to keep getting bigger.

Victor Martinez

Web designer & digital marketer helping online businesses grow online. With 10+ years of experience.


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