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Understand what e-commerce is and see good reasons to invest

Flavia Calina by Flavia Calina
March 20, 2023
in Business
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e-commerce
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With e-commerce, the chances of your brand growth are enormous. eCommerce (e-commerce) is a business model with a lot of potential since entrepreneurs can sell their products without worrying about geographic restrictions.

Through websites and social networks, this is an option for those who want to start without having all the apparatus to undertake a physical store. This convenience is one factor that has made online commerce grow so much in recent times, in addition to having very positive expectations for the coming periods. 

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But how to take advantage of this potential and expand the business? We’ll discuss that in this article and recommend a platform with deep commerce components.

What is eCommerce?

E-commerce is a business modality in which sellers and buyers can transact completely online. For this, your store must be available online so potential customers can access it and make their purchases. A store like Shopify allows you to set up a proper store and drive sales using the commerce component without incorporating specific features rigorously. 

According to a data survey from December 2021, it is estimated that e-commerce moved more than 20 billion dollars in the US. That is, it is still a new subject for many people, but it should be looked at carefully because the trend has changed.

How does eCommerce work?

With this type of business, you can make your products available in a virtual store, which can be your website, or in so-called marketplaces (which are like shopping malls with several stores), such as Shopify. 

It is also possible to do these negotiations through social networks. Facebook and Instagram, for example, offer both a catalog option and their marketplace (in the case of Facebook). 

The process is very simple for your customers:

  • Just access your e-commerce.
  • Choose the desired products.
  • Make the payment and wait for the shipping deadline.

A big advantage of this is that they don’t even have to leave the house to shop. That is, you don’t have to invest in a physical space to sell. Another thing to note is that eCommerce also works well for the government’s gain. Stores like Shopify have a feature called the Shopify tax which makes all parties exercise the right to pay taxes to the government on every purchase and sale.

Type of eCommerce

E-commerce can contain several types of relationships between you and your customer. In this section, we will talk about the most relevant ones.

Business to Consumer (B2C)

It is one of the most common models. In these cases, companies (businesses) sell directly to the end customer. Here is a site like Amazon (and their respective marketplaces).

Business to Business (B2B)

In the case of eCommerce B2B, we are talking about companies that sell directly to other companies. Sectors may include cleaning products, stationery, and electronics. 

Consumer to Business (C2B)

Unlike B2C, here it is consumers who sell to companies. If you are still self-employed, you fit into this service provision. So, we are talking about IT and electrical professionals, for example.

Consumer to Consumer (C2C)

Here, consumers sell directly to others, usually via marketplaces. These could be personal items you no longer use or your own products and services.

Why Invest in eCommerce?

After so many advantages, it’s hard to have doubts about investing in e-commerce, don’t you think? But if that’s your case, here are some more facts to put an end to them once and for all:

  • The high volume of online purchases is already a big reality, and the prospect is that it will continue to grow a lot;
  • With the possibility of generating reports on the platforms, your business is better monitored. Information can be an excellent source of knowledge and identification of improvements;
  • Having a beautiful and organized website gives an even greater sense of professionalism. This can help reinforce your brand in the digital market and attract potential customers;
  • As the virtual store is available 24 hours a day and customers can complete the entire purchase process on their own without you necessarily being in front of the computer, your schedule ends up gaining healthy flexibility.

Conclusion

An eCommerce platform that is popularly recommended and has proven to be the best is Shopify. Its several packages, like Shopify Plus and Market Pro, set the platform ahead of others. A unique feature that every seller also takes advantage of is the Ai-generated product information, which helps market your product with high-quality, and compelling product descriptions.

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