Most businesses with online presence use an ecommerce store or platform to manage their sales, marketing activities and fulfillment processes.
What is Ecommerce?
Retail ecommerce will exceed $5 trillion globally by 2023 and account for more than one-quarter of retail sales; by 2025, total spending may reach over $7 trillion despite economic uncertainty.
Let's look back on ecommerce history, its development over time, and its effect on businesses today. Additionally, we will discuss its advantages and disadvantages and future projections. Check out the Make it Big podcast, our biweekly series featuring expert audio insights with global thought leaders discussing everything ecommerce from news trends, growth strategies, success stories, industry achievements etc.!
Ecommerce Businesses of Different Sizes
Ecommerce companies can be small or large. Here are the four most common types of ecommerce businesses you will encounter.
Startup
Startup refers to the initial phases of any new venture or project initiated by entrepreneurs with an innovative business plan in mind.
Startup companies tend to employ less than 100 workers; however, the business's success defines it.
Small Business
Small businesses, as defined by the U.S. Small Business Administration, typically generate less money and employ fewer workers than large multinationals and have lower employee counts and revenues (ranging from 100 employees up to 1,500), with average annual revenues that may span $1 Million to over $40 Million annually.
Enterprise
Enterprise businesses employ 1,000 or more workers and generate annual sales exceeding $1 billion on average, 45 percent of such enterprises have purchased products via eCommerce at least quarterly.
There are Many Types of Ecommerce
There are generally seven different types of business models that can be classified as ecommerce:
- B2C
- B2B
- C2C
- D2C
- C2B
- B2A
- C2A
We'll examine each electronic commerce type in more depth:
Business-to-Consumer (B2C)
B2C (Business to Consumer) Ecommerce refers to transactions between businesses and consumers; B2C sales have become one of the more widely practiced ecommerce models; when buying shoes online is considered a B2C transaction.
Business-to-Business (B2B)
B2B stands apart from B2C by only including sales between companies, like retailers and wholesalers. As opposed to B2C, which involves consumer sales between entities directly, this form of commerce only occurs between businesses.
Consumer-to-Consumer (C2C)
Consumer-to-customer (C2C) electronic commerce is one of the oldest forms of ecommerce. C2C relationships include those found on platforms like eBay and Amazon.
Direct-to-Consumer (D2C)
D2C (Direct-to-Customer) eCommerce refers to businesses that sell directly to their customers without using retailers, wholesalers or distributors as middlemen. Subscription services like Dollar Shave Club and Netflix can be examples of D2C sellers.
Consumer-to-Business (C2B)
C2B (Customer to Business) retailing allows consumers to make their goods or services available to business customers directly instead of through traditional retail.
iStock is an example of a business-to-business (B2B) ecommerce company; stock photos can be directly purchased from photographers through this online store.
Business-to-Administration (B2A)
B2A refers to online transactions between businesses and government agencies; for instance, products and services such as legal documents and social insurance would all fall within this realm.
Consumer-to-Administration (C2A)
C2A (consumers to governments) works similarly, except consumers sell goods and services directly to government institutions instead of between themselves and individuals. Examples include educational consulting and tax preparation online services, as well as others.
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Ecommerce Examples
Beginning an online business requires selling something. Ecommerce provides greater flexibility than brick-and-mortar businesses by permitting a range of transactions with goods and services being purchased online. Here are three things that could potentially be purchased via this platform.
Buy Physical Products
Imagine shopping online for clothing, electronics or home decor products you love - such examples are perfect examples of physical products sold online. Physical goods refer to tangible products sold online or in stores that fall into three categories - B2C, D2C or B2B; however, certain vendors also fall within this umbrella.
Sell Digital Goods
Digital products offer an attractive opportunity for sales online, whether you are an established seller or just starting as an entrepreneur. Digital products come in files such as online classes or templates; art pieces; music downloads; or infographics that can be easily downloaded.
Selling Services is a Great way to Earn Money
Selling services requires offering a specialized service like freelance writing, online coaching or influencer marketing in exchange for compensation. Some B2C businesses, such as Fiverr, even specialize in selling online services.
Ecommerce Growth
Ecommerce industry has grown since CompuServe was released in 1969. Today it continues to change with technological innovations and global conditions driving its evolution.
- Online sales are predicted to increase to 22% by 2023 compared with 14.1% of retail sales.
- By 2024, digital wallets are expected to account for more than half of all e-commerce payments.
Amazon is expected to account for nearly $2 of every $5 online in the U.S.
Ecommerce and its Impact
Ecommerce can immensely affect businesses of all sizes; we will look at its major ramifications on retailing.
Online Sales are a Necessity for Large Retailers
Online shopping's growth can enormously benefit retailers' bottom lines, while those hesitant to transition will face the toughest challenges in doing so.
Online sales in February narrowly outpaced general merchandise stores such as department stores, warehouse clubs and supercenters. Since Amazon Prime removed its shipping fee for online purchases, consumers have become more comfortable shopping digitally; larger retailers must adapt accordingly.
Ecommerce Allows Small Businesses to sell Directly to their Customers
Ecommerce adoption can be a challenging journey for small business owners. Yet those that leap may discover it opens new avenues by setting up online shops with diverse offerings to reach more customers while catering to those who prefer mobile/online shopping.
With ecommerce growing every year and one-quarter of small businesses lacking an online shop, entrepreneurs still have ample opportunity to expand online and gain a competitive advantage.
B2B Businesses now offer Online Shopping Experiences Similar to Those of B2C Companies
B2B businesses must enhance the customer experience online to compete with B2C firms, with 90 % of B2B clients expecting digital experiences similar to what can be found with retail firms. Therefore, multi-touchpoint omnichannel customer engagements that utilize data in personalized ways should be provided, and customized relationships fostered through each touchpoint must also be created and nurtured with appropriate tools and data analytics solutions.
Price comparison platforms and self-service ecommerce can assist B2B companies with maintaining customer relations.
Rise of Online Marketplaces
Since its inception in the 1990s, online marketplaces such as Amazon and Alibaba have experienced rapid expansion.
Amazon is widely known for its unique growth strategy, which has propelled them toward mass adoption and record sales figures. Amazon quickly expanded by providing customers with an extensive selection, exceptional convenience, and breakthrough innovation - all within reach of mobile phones! Amazon isn't alone: third-party sellers will sell 56% of Amazon paid units during Q4 2023 instead. Not Amazon!
The Supply Chain has Changed
Survey results demonstrate the dramatic influence that ecommerce has had on supply chains by shortening product lifecycles and thus decreasing product obsolescence rates.
Manufacturers looking to protect themselves against price erosion should offer a wider and deeper selection, creating more movement through warehouses as stock comes and goes. Warehousers provide valuable added-value services that make the ecommerce experience simpler:
- Separate stock/storage of online sales vs. in-store: Calculate forecasts for online and retail sales separately and replenish the stock accordingly to achieve better results.
- Pick-and-pack services come in many forms. The right software for this service can make it easier to ship your orders.
- Stock management requires a good understanding of inventory and logistics.
There are New Jobs Created
Employment of ecommerce workers is expected to experience a 32 percent surge in 2023 - outpacing its expansion rate of 28 percent.
According to the Statistics projections, computer-related jobs will grow 13.4% between 2020-2030 -- outpacing the overall job market average of 7.7% by an astonishing 5.7 points.
Shoppers Shop in Different Ways
Ecommerce has revolutionized how consumers shop. Researchers estimate there are at least 2.14 billion buyers online worldwide - equivalent to 27.6%. By 2025, Statista projects that this number will shrink further: 291.2 Million are projected online shoppers in America alone!
Share Products easily on Social Media
Social networks such as Facebook, Instagram and Twitter enable customers to discover products and services online easily; recommendations from friends, colleagues and other trusted sources may also affect their purchase decisions. Social media sites now feature ecommerce options like in-app checkout, shoppable content and Buy Now buttons which take users directly to online stores.
The Global Ecommerce Market is Rapidly Growing
By 2023, it is anticipated that over 2.14 billion digital shoppers worldwide will have participated in online retailing compared to 1.66 billion shoppers who conducted transactions. Taobao leads China's online markets in gross market value with $711 billion; Amazon were second and third with gross third-party market values totaling $672 billion, respectively. Digital platforms and ecommerce solutions allow merchants to sell their products online globally, creating opportunities for companies to grow internationally.
Read More: Top 10 E-commerce Business Growth Trends to Watch
Benefits of Online Shopping
Ecommerce provides many advantages, from speedier purchases to reaching large audiences 24/7. Please take a closer look at its numerous advantages!
Customers can Now buy Faster
Ecommerce allows customers to shop any time or place without being bound by brick-and-mortar store operating hours. Plus, expedited shipping upgrades (think Amazon Prime Now!) make delivery much faster!
Companies can Easily Reach new Customers
Ecommerce makes it simple for businesses to tap into new customers around the globe since virtual stores don't tie them down to just one location but are open to visitors from everywhere. Social media marketing, emailing and SEO (search engine optimization) allow brands to access a wider target market ready and willing to buy.
Reduced Operational Costs
Ecommerce stores can be launched quickly with low operating costs since they don't need physical storefronts or employees; dropshippers also benefit from reduced upfront costs; brands can scale operations as sales increase without making large property investments or hiring numerous employees, leading to overall increased profits and higher profits.
Experiences That are Tailored to You
With automated processes and customer profiles, you can provide highly tailored online experiences for each customer. Showing relevant products based on past purchase behaviors can increase average order values while making shoppers feel their needs have been met.
New Technologies: Access
Physical shops may limit your innovation options; with advancements in ecommerce technology, accessing cutting-edge tools that streamline operations will become available to you. Utilizing various integrations and apps will enable you to enhance both workflows and marketing strategies, saving time and resources.
Although modern ecommerce has grown increasingly flexible, there remain some drawbacks associated with it.
Limit Interactions with Clients
Understanding what your customers require can be challenging without meeting them face-to-face. But you can still collect this data through surveys and customer service interactions - although it might take longer.
The Ability to Sell can be Affected by Technology Breakdowns
Your ability to sell may be compromised if your website is too slow, unreliable or unavailable for customers to reach. Crashes and technological failures could hinder sales while damaging customer relations - an unfavorable outcome that can negatively affect both bottom lines and customer relations.
There is no Way to Try or Test it
Electronic commerce shopping experiences often present barriers for customers who prefer tactile interaction before purchasing physical products like clothes or beauty supplies online.
The BigCommerce Apps to Grow Your Ecommerce Business
BigCommerce can assist any brand with expanding and building loyalty for their business. Here we present some top BigCommerce apps that will support an ecommerce enterprise's growth.
Considerations when Selecting BigCommerce Apps
Start by looking at what to look for when searching for apps.
Budgeting and Pricing
Cost should always come first when considering an app's value; to do this effectively, you must compare its expense against its importance and potential return.
Before you start, ask yourself these questions:
- What is the purpose of an app?
- What is the most important app feature?
- How much ROI can you expect from your app?
- What is your investment budget?
Experience Seamless Service
Choose BigCommerce apps that fit seamlessly with existing tools; avoid purchasing apps that conflict with software or tools already in use.
You don't need to install a BigCommerce loyalty app if there is already one on other channels; otherwise, your data could become fragmented across several locations (and customer experience may suffer). Instead of searching for apps that claim to cover everything at once, look for ones that integrate well with your system and close any gaps that exist between systems and your customers' experience.
Try and Test
Review any BigCommerce Apps you are considering thoroughly before making a decision. When reading reviews of each BigCommerce app you are considering, prefer reading ones with positive ratings over negative ones that highlight problems. Also, take into consideration their use cases relative to yours as it could increase the chance that bugs arise when operating it differently from how other people did, so that could mean you discover bugs more often if using it differently from anyone else has done before.
Search for apps with many reviews from similar technology stack users who use BigCommerce similar to yours; reviewers may have noticed any bugs you encountered and reported them for resolution.
Multi-Functionality
Apps designed to serve multiple functions can help you do more with fewer tools; one BigCommerce application could offer SMS and email marketing in just one app!
Multi-functional apps can be extremely valuable to businesses because they help save on subscription fees while streamlining toolboxes. Multitasking solutions help your budget remain intact while keeping system complexity to an absolute minimum.
Customer Support is Adequate
An effective customer service team will quickly address any problems with an application and ensure its continued functionality.
Support staff should assist with troubleshooting and updating patches/fixes as part of app creation; otherwise, it won't be worth your time or money spent building an application that won't meet users' needs due to limited support services.
The Top 5 BigCommerce Apps for Every Function
Here is a selection of BigCommerce applications currently available on their app marketplace, arranged according to function.
1. Google Shopping Sales & Orders
Rated 4.73/5 stars based on 250 reviews
This app connects BigCommerce stores with Google Merchant Center, Ads and Analytics so merchants can seamlessly sell and advertise through social media channels like Facebook, Instagram and Google.
Google Shopping by Sales & Orders allows users to present their catalogs to Google's vast audience for exposure and traffic generation. Features of this platform include:
- Real-time reports that keep you updated.
- Data tools to support advertising performance optimization and fine-tuning.
- Automated feed management services.
Prices start at $10 per monthly
- No cost plan Free plan?
- Yes, you can try it for 15 days. Free trial?
- Does it work with other channels of sales? Works with other sales channels?
- BigCommerce partner tier? What is the Elite tier of BigCommerce partners?
- Multi-storefront compatible? Compatible with multiple storefronts?
2. Codisto
Rated 3.94/5 stars from 62 reviews
Codisto allows BigCommerce merchants to sell across major channels like Google Shopping Campaigns. As an integrated solution for marketplace listings, Codisto syncs inventory details such as prices and currencies with all BigCommerce currencies simultaneously and allows merchants to link multiple listings simultaneously to generate channel-specific data - and run unlimited Google Smart Shopping Campaigns free.
Merchants can manage all their sales channels from one convenient place with Codisto; however, some reviews have noted issues with Codisto's support services.
Price: Free for orders up to $250 per month
- No, there is no free plan. Exclusively available to BigCommerce Sellers
- No cost trial Free trial?
- Does it work with other channels of sales? Works with other sales channels?
- BigCommerce partner tier? What is the Elite tier of BigCommerce partners?
- Multi-storefront compatible? Compatible with multiple storefronts?
3. Klaviyo
Rated 4/5 stars based on 15 reviews
Customer platforms provide you with a convenient and accessible means of managing information regarding customers and interactions, helping build stronger relationships between you and them.
Klaviyo's dynamic forms gather customer information and generate email lists while helping retailers recognize consumer trends with detailed reports, analysis and segmentation capabilities.
Klaviyo empowers merchants to customize and automate touchpoints while improving customer experiences by incorporating shipping and reward programs.
Price: free for 250 contacts. Paid plans are based on the number of contacts.
- Plan Free? Free plan?
- No cost trial Free trial?
- Does it work with other channels of sales? Works with other sales channels?
- BigCommerce partner tier? What is the Elite tier of BigCommerce partners?
- Multi-storefront compatible? Yes
4. Omnisend
Rated 4.38/5 with 162 Reviews
Omnisend, an automated email and SMS platform, helps businesses build customer bases, enhance experiences, automate workflows and SMS notifications regarding abandoned carts, and automate workflows to recover these abandoned carts.
Omnisend allows merchants to efficiently send targeted newsletters and campaigns and collect email and phone addresses using various forms. Omnisend features comprehensive segmentation capabilities with reporting features and user-friendly support features for maximum efficiency and success.
Price: free for 250 contacts. Paid plans are based on the number of contacts.
- Plan Free? Free plan?
- No cost trial Free trial?
- Does it work with other channels of sales? Works with other sales channels?
- BigCommerce partner tier? What is the Elite tier of BigCommerce partners?
- Multi-storefront compatible? Yes
5. Gorgias
Rated 5/5 stars based on three reviews
Gorgias provides live chat and help desk functionality. This app consolidates customer requests through all sources, including emails, social media posts, telephone conversations and live chat sessions, into one consolidated customer view.
Gorgias offers an advanced ticketing system, social integrations and automations designed to answer frequently asked questions; machine learning technology detects customers' sentiment analysis and performance tracking capabilities.
Gorgias' functionality enables you to provide people with an exceptional experience while increasing conversion rates and revenues. Gorgias also stands out as being user-friendly.
Price: $60 per month for Custom Pricing
Other details:
- No cost plan Free plan?
- Yes, you can try it for seven days. Free trial?
- Does it work with other channels of sales? Works with other sales channels?
- BigCommerce partner tier? BigCommerce partner tier?
- Multi-storefront compatible? Compatible with multiple storefronts?
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Conclusion
Statista predicts that by 2025, the global ecommerce market will reach $1.365 Billion, evidence of its non-transient growth. Digital buyers can look forward to seamless shopping and browsing across devices and commerce platforms.
Below are other trends that should be observed for online commerce to succeed:
- Personalization and robust customer journeys.
- Shopping with artificial intelligence.
- Shopping for social causes
- Mobile commerce.
- Digital currencies such as cryptocurrency and mobile wallets.
Please keep in mind, however, that the ecommerce industry is relatively young compared to retailing overall and offers numerous possibilities; their success will ultimately depend on buyer preferences.
