Technology has revolutionized our lives in the twenty-first century, particularly with the rise and the dominance of ecommerce. Ecommerce, or electronic commerce as it is also known, is the use of the internet to buy and sell services or goods, paying online to complete each purchase and transaction.
Dominant Online Retailers
Shopping online delivers a wide range of benefits for the customer as well as the online business. The customer can browse many, many online stores to search for the perfect item or service that they require, eliminating unsuitable options with one swipe whilst using filtering and search options to determine which item meets their desired criteria. Similarly, the business can reduce their costs through possessing minimal operating costs in comparison to running a physical store, while websites such as Payday Deals can offer a vast range of different products to the consumer which may not have been possible if it were not through ecommerce and online stores.
Payday Deals is fast becoming a leading online retailer in Australia, providing an online business that sells a range of furniture, electronics, tools, toys, and many other online departments to place together everything that a consumer could want or need. Social media and online advertisements enhance the image and the selling power of ecommerce businesses such as Payday Deals, allowing the customer to become fully aware of what the online retailer has to offer as well as ensuring that the business can promote various offers and new deals direct to the consumer. Similarly, online retailers are instantly in reach of the consumer, allowing the consumer to contact customer services immediately, enabling the business to provide first-class, instant customer service.
Models of Ecommerce
Just as business models have dominated the business environment throughout time, ecommerce models are now positioned at the forefront of the ecommerce business. Typically, an online retailer may utilize the B2C model, identifying as a business which sells goods or a service to the consumer. An expert online retailer such as Payday Deals operates using a B2C ecommerce model. Other businesses may use a B2B ecommerce model, operating as a business which sells their goods or services to another business, for example when a business manufactures and sells vehicle parts to another business such as a car mechanic. The mechanic business would order parts online from the manufacturer.
Alternatively, a business may operate using a C2C ecommerce model, or a consumer to consumer model, with a prime example featuring someone selling used goods to someone else through an online site such as eBay. Finally, a business may use a C2B model, when a consumer sells its services to a business.
Types of Ecommerce
Whilst online retail is the most prominent type of ecommerce operating online, there are other types of ecommerce present that still involve relevant transactional relationships through the internet. Examples include wholesale purchasing when a bulk lot of items are purchased online which are then sold separately to the consumer, or providing a subscription service when the purchase of an item or a service is automatically processed on a recurring basis until the subscription is terminated. Furthermore, a dropshipping service is available in some instances, where the product is manufactured and then shipped through a third party, or when digital goods are downloaded, such as movies or computer games, immediately allowing the consumer to view or play the digital content.
Whilst it is physically quite simple to set up and operate ecommerce, there are several factors that will determine whether you will achieve success. Firstly, there is a vast amount of competition, particularly today, when there are up to 20 million online stores available globally, meaning that you need your target consumer to notice your business. Your store needs clear and unique branding along with a high marketing profile, perhaps through placing an alternative spin on existing ecommerce to look for a niche or a different way of doing things. Increasing your brand traffic to expand your reach is vital to increase awareness, capitalizing on low-cost marketing tools such as social media and email advertising as well as through creating a product that entices people to talk about it.