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An Introduction to the Industry November 4, by James Morrish 7 Comments The term e-commerce was coined back in the s, with the rise of electronic commerce — the buying and selling of goods through the transmission of data — which was made possible by the introduction of the electronic data interchange.
Fast forward fifty years and e-commerce has changed the way in which society sells goods and services. E-commerce has become one of the most popular methods of making money online and an attractive opportunity for investors.
For those interested in buying an e-commerce businessthis article serves to provide an introduction to e-commerce, covering the reasons for its popularity, the main distribution models and a comparison of the major e-commerce platforms available.
E-commerce has experienced rapid growth since its humble beginnings with e-commerce sales projected to grow to The power of e-commerce should not be underestimated as it continues to pervade everyday life and present significant opportunity for small, medium and large businesses and online investors.
Amazonfor example, which set the standard for customer-orientated websites as well as a lean supply chain, has been seen to sell in excess of items per second.
Managing an online storefront is far cheaper than an offline, brick and mortar store. Typically less staff are required to manage an online shop as web-based management systems enable owners to automate inventory management and warehousing is not necessarily required as we discuss later.
As such, e-commerce business owners can afford to pass operational cost savings on to consumers in the form of product or service discounts whilst protecting their overall margin.
Furthermore, with the rise of price comparison websites, consumers have more transparency with regard to prices and are able to shop around, typically purchasing from online outlets instead. Unlike many offline stores, consumers can access e-commerce websites 24 hours a day. Customers can read about services, browse products and place orders whenever they wish.
In that sense, online shopping is extremely convenient and gives the consumer more control. Furthermore, those living in more remote areas are able to order from their home at a touch of a button, saving them time travelling to a shopping centre.
For the past twenty years, the growth of online shopping has to a large extent been based around increased choice. With an almost endless choice of brands and products to choose from, consumers are not limited by the availability of specific products in their local town, city or country.
Items can be sourced and shipped globally. Interestingly, one recent study found that consumers are actually starting to become frustrated by e-commerce sites that offer too much choice. Whichever way you look at it though, more choice has likely been a good thing over the long term. Naturally e-commerce has significant benefits for the consumer, but it has also been useful for businesses too.
Next, we look at some of the reasons why businesses have been quick to race into the space. Setup costs and ongoing operational costs such as rent, heating, electricity, warehousing if operating a drop-ship model and inventory management are often significantly reduced or otherwise eliminated.
Further, customer service and other administrative tasks can be automated or outsourced at a relatively low-cost. As such, higher margins can usually be achieved when selling via an online store compared to operating an offline business.
With a brick and mortar business, the owner is often limited by the amount of people who can physically be in the store at any one time. There is no limit when trading online. Running an e-commerce business means tapping into a truly global market. Furthermore, online platforms enable rapid scaling.
With the emergence of social media and content marketing as well as the option of generating traffic and conversions through pay-per-click PPCexpanding into new regions or markets can happen quickly. E-commerce businesses typically collate a tremendous amount of customer data.
With every element of consumer behaviour being tracked, e-commerce business owners are able to understand, tweak and improve the customer shopping experience for customers — making data-led decisions to increase conversion rates and sales.
Those who leverage the right systems and technology can see their businesses grow extremely quickly. Overview of E-Commerce Fulfilment Models There are three main fulfilment models associated with e-commerce that dictate the role of the retailer as well as the way in which a product is stored and distributed to the end user.
These models have a significant impact on the operational characteristics of the business and its day-to-day running as well as the overall operating margin.
The three main models are: Dropshipping Model In a dropshipping model, the e-commerce business takes no physical possession of the items on sale. The store owner does not keep products in stock and there is no inventory held.world development report A World Bank Group Flagship Report DIGITAL DIVIDENDS OVERVIEW SKU information and communication technology (ICT) strategies.
participate more easily in the labor market—as e-commerce entrepreneurs, in online work. Introduction to E-business Management and strategy Colin Combe Chapter 5 E-marketing Key issues Introduction Internet marketing E-marketing plan The marketing mix Branding Online advertising development of the World Wide Web in .
Jan 16, · World's Billionaires Forbes Here are 12 e-commerce strategies you should plan to implement in 1. Technology is available, even to smaller players, to . Reviewed by Rick Olsen, Professor and Chair, University of North Carolina Wilmington on 5/22/ Very comprehensive and their shift from digital marketing to marketing in a digital world makes for a positive shift in framing the challenges the book addresses.
In this free online e-commerce course you will learn how to build a co-ordinated internet marketing search and promotion strategy for online business.
Introduction to Internet Marketing Strategies for Businesses. E-Commerce. The obvious impact of information technology is the more rapid dispersion of technology and the shorter product life cycles in global markets than ever before.
It suggests that the former country-by-country sequential approach to entering markets throughout the world, described in the international product cycle model is increasingly untenable.