Ecommerce has changed the way we shop. The first website, created by computer programmer Louis Wozniak in 1994, sold books via mail order.
Nowadays, there are over 7 million eCommerce websites across the globe. This article will explore some of the most important things you need to know before creating your own e-commerce website.
So, you are interested in starting an ecommerce website, but have no idea where to start? Well, you have come to the right place. A lot goes into making a successful ecommerce business and e-commerce marketing strategies will help you take your business to the top.
E-Commerce, or electronic commerce, is the act of buying/selling goods through an online platform. The most common good bought and sold today are digital goods including books, movies, music, and games.
A more advanced way of explaining this would be to say that e-commerce is a method of transacting with customers over the internet. For example, instead of going to a local store to purchase headphones, you could simply make a purchase online.
E-commerce is effective because it can reach an enormous amount of people and there are virtually no barriers to entry (in comparison to traditional brick and mortar businesses). It’s relatively easy to get started with E-commerce; all you need for your business is a website.
There are many benefits to selling your items online, especially through an ecommerce platform. However, there are also downsides that you should be aware of before beginning the process. Let us look at some of the pros and cons associated with E-commerce websites:
Advantages
The huge market of buyers – Anywhere from hundreds to millions of people have access to the internet. Therefore, you have a gigantic group of potential customers that could be interested in purchasing items through your ecommerce website.
Barriers to entry are low – In comparison to opening a traditional brick-and-mortar store, starting an ecommerce business is relatively easy. You can have your website up and running in a short period of time with only the necessities needed to run an online business.
Reach is greater – Since E-Commerce can be done through an online platform, it means that you’re reaching people all around the world. Your physical location does not matter, which means you’re reaching a larger market of potential customers.
Risks
High competition – There are literally thousands of businesses that have E-commerce websites today, so it’s important to find a way to stand out from the crowd. It will be difficult if your prices are similar to other sites, or if they offer products similar to what yours offers.
It’s difficult to make impulse purchases – If you’re selling tangible products, it may be difficult for some people to purchase from your website as they would need to find a way to get the product home with them. In some cases, this could mean finding out where you ship from and having it sent there or going into a physical location of the company.