What is e-commerce?

E-commerce Sites | a complete guide for beginners

E-commerce or e-trading is a digital way of buying and selling goods, services, or anything else through the internet. E-commerce is as diverse as various ways of writing word e-commerce. Some of its appropriate and mostly used writing styles are as,

  • E-commerce
  • Ecommerce
  • ecommerce
  • e-commerce
  • eCommerce
  • e commerce

What are e-commerce sites?

The websites that support e-business (buying and selling goods or services virtually via the internet) are known as e-commerce sites. E-commerce sites are quite different as compared to other blogging websites. The structure of e-commerce sites includes a lot more than routine blogging websites. We will discuss the detailed design of an e-commerce site after discussing its basis, types, metrics, algorithm for setting up successful e-commerce sites, etc.

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Wordpress Ecommerce

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BigCommerce

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Ecommerce

Types of E-commerce Sites models

In nearly 1969, the revolutionary idea of e-commerce sites or e-shops came into existence. From that moment to the present day, innovative e-commerce sites never stopped evolving. E-commerce sites are continuously evolving to achieve an ideal e-shops structure of the digital world. With that, e-commerce sites have gained acceptance throughout the globe with revolutionary speed. We have enlisted some of the vital and mainly used e-commerce sites models below,

Business to Consumer Model (B2C)

Business to consumer, as the name itself, explains. The e-commerce sites that let the consumers buy products or services from retail business houses follow this model. B2C e-commerce sites usually have a heavy load of consumers with low revenue as consumers are common people buying products or services in low quantities for personal use. Amazon and Walmart are two well-known e-commerce sites that are following business to consumer (B2C) model.

Direct Sellers

Direct sellers are those that sell their products or services directly to their consumers through their e-commerce sites. Some common examples of direct seller’s online stores enlisted below,

  • Microsoft
  • Apple
  • Samsung

All the above-listed companies are selling their products and services directly to their consumers through their e-commerce sites.

Business to Business (B2B) model

B2B model is more than a blessing to the universe as it geared up the innovation & development speed of the world. Business-to-business modelled e-commerce sites work as a wholesale market. It lets an eCommerce business sell products or services to another eCommerce business. It makes it superbly easy for 3rd world countries businesses to directly contact giant tech industries to import the latest tech or machines.

Software, Raw materials, tech products, and industrial machinery are the main niches handled by B2B modelled e-commerce sites.

Business-to-business to consumer (B2B2C)

B2B2C modelled e-commerce sites support middle man. Such e-commerce business sells their products or services to other e-shops or physical stores. That are directly selling it to the consumer. Some well-known examples of B2B2C modelled e-commerce sites are as,

 

  • Drop shipping sites
  • Affiliate blogging sites
  • Alibaba
  • TradeKey
  • DHgate

Wholesale model

The wholesale model lets an eCommerce business sell or purchase a bulk amount of any product. This wholesale model works by emails, spreadsheets, apps, or specially designed forms on an e-commerce site. Any business house can contact the seller site to get a quotation and finalize the deal through the earlier discussed digital means. Drop shipper also uses this model for a viral product on their e-commerce sites (stores).

Manufacturers

Manufacturers B2B model lets a manufacturer sell its finished goods to other manufacturers or eCommerce businesses. To better understand the Manufacturer B2B model, look at silicon chip industries. In this digital era, silicon chips are the vital components of nearly every digital product. Silicon chip industries are getting orders from multiple techs and electronic giants throughout the globe on their e-commerce sites.

Distributors

The fundamental purpose of distributors is to handle the B2C part of a B2B2C modelled manufacturing company to increase sales in a specific area. With that, distributors’ input helps manufacturers understanding the market demand to improve the product ultimately.

B2B Distributor modelled e-commerce sites ultimately increase efficiency, product value, services, and revenue by decreasing delivery time and absorbing the local market’s innovative demand & inputs in, timely.

B2B eCommerce businesses are expanding at a dramatic speed because of their excellent benefits.

Direct to Consumer model (D2C)

Direct to consumer model is the new addition to the continuously evolving diverse eCommerce businesses. E-commerce sites with D2C models let the manufacturers directly sell their products to consumers. D2C modelled e-commerce sites outdraw middle man, wholesalers, and distributors to offer minimum-priced products or services to their consumers. It is nearly similar to the Direct seller model.

Pandemic forces many giant companies to adopt e-commerce via the D2C model for their survival. And this was a blessing in disguise as such companies witness exemplary success by earning staggering revenue in hard times. D2C modelled e-commerce sites are ideal for small businesses to increase their revenue and grow at incredible speed. Ecommerce businesses are successfully using D2C modelled via e-commerce sites subscription and social media selling. Facebook, Instagram, Pinterest, and Snapchat are some of the popular social media platforms for D2C sported e-shops.

Consumer to Consumer model (C2C)

C2C model eCommerce businesses are gaining popularity with each passing day. C2C eCommerce websites let sell products or services to a consumer by a consumer. C2C e-commerce sites facilitate users to contact and do transactions on their platforms by charging small commissions. Fiver, Upwork, and freelancer are some popular C2C e-commerce sites that allow to buy or sell services throughout the globe. A person may purchase certain services on day one and sell specific services to any other person on day 2 through such platforms.

While eBay, Etsy, and Amazon, in some cases, are the best examples of C2C e-commerce sites that support C2C, digital & physical products selling and buying.

C2C e-commerce sites are often known as a marketplace as C2C e-shops base on the idea of open markets of the physical world. One product can be found on multiple e-stores at one C2C e-commerce site or marketplace. Buyers can easily purchase products at a minimum price because of the healthy competition among the numerous sellers.

Consumer to Business Model (C2B)

C2B model lets individuals sell their services or products to businesses. Freelancers are prominently following this model by selling their services to giant companies. A giant company can buy writing, development, designing, photography, voice-over, and many more services by an individual freelancer. International Museums are another example C2B model in some specific cases. A museum may buy a signed jersey of a well-known gaming celebrity by their relatives, friends, or followers.

Mobile Ecommerce

Any digital transaction through mobiles comes under mobile eCommerce. So far, 54% of the total e-commerce sales have been made by mobile eCommerce n 2021 (Source: Big Commerce). Mobile commerce can be divided into the following three categories,

  • Mobile shopping (shopping via mobile devices)
  • Mobile banking (Smart banking through dedicated applications)
  • Mobile payments (like utility bills payments)

Because of the increasing use of smartphones and accessibility to the internet, mobile eCommerce market share is increasing rapidly.

Mobile Ecommerce eye-opening statistics

Nearly half of the eCommerce transactions are performed by mobile devices. While this trend rises to 69.4% for the People of the age group (16-64) are using any shopping app at least once a month acc. to Jan 2021 stats. An interesting stat comes forward to showcase a slight difference between android and iOS apps user buying behavior. According to stats, Android shopping apps rank at 9th place while iOS shopping apps rank at 5th place.

(Digital 2021: Global Overview Report)

Five reasons behind the astonishing success of E-commerce sites

Some of the key secrets behind the success of C2C modeled ecommerce businesses are enlisted below,

Say no to inventory complexities:

C2C e-commerce sites are taking their specific cut on sales by facilitating their users. But in the C2C model, one doesn’t need to invest in inventory management or buying a bulk stock. With that, you don’t need to worry about shipments and payments as the C2C marketplace provides all basic e-shop necessitates.

Needs minimum staff:

No inventory management means you don’t need to hire workers for the product packaging, shipping, and shelving anymore.

Induct new sellers out of buyers:

A continuous and pleasant buying experience gives confidence to buyers about the legitimacy of a C2C eCommerce website or marketplace and ultimately attracts them to be a seller.

Varying Involvement level

Each marketplace has a different user agreement that states its intensity of involvement in your C2C business. The specifically designed involvement level of a marketplace protects buyers and sellers. It gives confidence to its users, which helps to grow a C2C e-shop.

No to consumer court issues:

Some popular C2C e-commerce sites like eBay stated in their user agreement that they are not responsible for the quality of products sold by foreigners. It means the buyer can’t sue eBay in the case of foreign sellers. It protects the C2C platform and permits it to dominate the e-commerce industry.

E-commerce Definition

What is e-commerce? It’s time to redefine e-commerce. Selling goods or services via any digital means is called e-commerce. From freelancers, small companies, wholesalers to giant companies, and manufacturers, everyone is enjoying e-commerce; in this era of digitalization.

Types of E-commerce

Irrespective of the e-commerce business model, some of the popular examples of e-commerce business are enlisted below,

Retail e-commerce sites

Retail ecommerce businesses are selling the products directly to their consumer.

Drop shipping

Drop shipping lets you sell products manufactured and shipped by a third party by just marketing.

Virtual products

Virtual products are downloadable products like games, movies, songs, books, and Software’s, etc. Virtual products have a huge share in the e-commerce market.

Wholesale

Wholesalers are enjoying the perks of e-commerce. Wholesale businesses are taking orders of a bulk number of products through the world via e-commerce to multiply their revenue.

Services

People are selling their skills through e-commerce marketplaces. In a hard time of Covid, mostly people adopt such freelance platforms to coach, teach or sell any other service.

Subscriptions

Subscription is a new trendy way to sell products or services at a minimum price to regular customers.

Crowdfunding

Crowdfunding e-platforms lets you raise funds for your business startups, to solve any social issue or aid someone in need.

Benefits of E-commerce businesses

E-commerce sites are considered the revolutionary invention of the last few decades. It helps to drag millions of people out of poverty with its following enlisted plethora of advantages.

Access to open market

E-commerce sites break physical boundaries by letting a business house sell or purchase products or services throughout the globe. At the same time, buyers can enjoy shopping through any part of the world through e-commerce sites.

Minimize business Expenses

E-commerce sites shrink the business expenses to a minimum level. Business houses neither need to pay rents of commercial properties nor need to hire staff for multiple franchises. With that, businesses with D2C modeled E-commerce sites excluded middle man, wholesalers, and franchises to increase their revenue.

24/7 Open

E-commerce sites let you do business 24/7. It gives a pleasant experience to users. Additionally, quick & free delivery with an easy return policy gives the user a convenient experience and helps to grow the regular customer’s list.

Brand Loyalty

E-commerce sites review features with quick customer response service aids to build brand loyalty. After buying a product a customer can give review his/her experience. When a company response to the client review by improving its products; it gives a personal connecting experience to buyers to ultimately strengthen brand loyalty.

What are the best e-commerce platforms?

Today e-commerce is a trillion-dollar industry and still has an unparalleled potential to grow. You’re far behind the world and may be out of the race in few years if you still have not digitalized your business to move a step forward towards e-commerce.

The top 5 dominating e-commerce sites are enlisted below,

Alibaba

Alibaba, a Chinese e-commerce site, initiate its journey in 1999. Today, Alibaba is considered the most successful e-commerce company in the world. The revenue of Alibaba surpassed the collective revenue of Amazon and Walmart in 2015. Source: Institutional Investor

Some of the top Alibaba hosted e-commerce companies with different e-commerce business models are as,

  • Alibaba.com (B2B model)
  • Taobao.com (C2C model)
  • Tmall (B2C)

In addition to that, today Alibaba owns several successful regional e-commerce sites.

Amazon

Amazon starts its e-commerce journey in 1994 by selling books from a garage. Now, Amazon is the largest e-commerce site in the USA retail business. Amazon increased its profit by 80% in the year 2020 with a new all-time high revenue of $386 billion (Source: Forbes). The 80% boost was unexpected as Amazon was looking to achieve this milestone gradually in several years. But Covid proves a booster for the eCommerce industry, and nearly all giant e-commerce stores witnessed an incredible rise in their profit.

Walmart

Walmart is a US-based retail store and captured the online market by offering home delivery and subscriptions services via a trendy e-shop strategy.

eBay

eBay starts its remarkable journey in 1995 from California, USA. Today, it’s the world’s 4th biggest e-commerce site in sense of revenue. Today, eBay has a multi-billion dollar share in the E-commerce market.

Wayfair

Wayfair is the most successful e-commerce company with the drop shipping model. It sells home furnishing items. Wayfair does not invest in inventory; it just manages retailer supplies, orders, and fulfilments. Because of the positive branding image of Wayfair, each brand wishes to collaborate with Wayfair. But, it’s Wayfair, whose team decides what to sell on their platform after a deep study of the market.

E-commerce platforms

After digesting the basis of e-commerce business, we need to focus on e-commerce platforms. E-commerce platforms are the central connecting bridges b/w buyers and sellers. These platforms enabled buyers to do a transaction and sellers to do stock management and order fulfilments. To have a shopping cart, payment methods, payment processing system, and an attractive & simple storefront, we need an e-commerce platform. Some of the top-notch e-commerce platforms are enlisted below,

WooCommerce

WooCommerce is the world’s most popular and largest open-source e-commerce CMS powered by WordPress. According to BuiltWith statistics up to 4,414,537 e-commerce websites are using woo-commerce, and the number is still rising with rocket fire speed. Some of the key secrets behind the exemplary success of woo-commerce are listed below,

  • Open-source CMS
  • Woo-commerce lets you customize your store without any restrictions or limits.
  • It provides hundreds of free plugs in to turn your business ideas into reality in no time.
  • WooCommerce lets you access hundreds of free templates to customize your online store.
  • It also provides access to unlimited premium templates to take your ecommerce website design to the next level.
  • WooCommerce lets you access core coding to open doors to extensive customization.

Dissfotware expert team ranks WooCommerce best CMS, especially for small growing businesses.

DISSOFTWARE STAT Shopify

Shopify is a Canadian CMS company that provides its services in 175 countries. It is one of the best and in-demand e-commerce content management systems. According to statistics, Shopify alone powers up nearly 4,766,134 e-commerce websites throughout the globe. And this number is continuously increasing. We have tried to sum up the reasons behind the utmost popularity and success of Shopify below,

  • Easy to manage Admin Panel
  • Free themes to initiate your e-business
  • Unlimited hosting on the same platform
  • Shopify Apps to turn fascinating e-business ideas into reality
  • Multiple payment gateways
  • Automate tax setting
  • Multiple shipping options
  • Built-in SEO Feature
  • Social media accounts integration
  • Hundreds of premium templates for every niche

DISSOFTWARE ShopifyAll of the above hot features aids Shopify to catch up to 21% of the Global market share of e-commerce website development. For the year 2020, Shopify witnessed an all-time high rise of 86% in its revenue (source: Shopify).

Magento

Magento is easy to design e-commerce content management system. Magento is hosting 740,334 e-commerce sites throughout the globe. Magento is rapidly capturing the potential market, and acc. to experts, Magento is far behind its peak right now. The key attributes behind the success of Magento are as,

  • Magento has the potential to handle medium-size e-businesses.
  • Magento adds-on leaves no stone unturned to transform your vision into actuality.
  • Magento lets you scale up your e-business with absolute ease.
  • It has hundreds of customizable ecommerce website design templates.

 

If your e-business needs a highly customizable e-commerce site, then Magento could be your first and ultimate choice.

SalesForce

SalesForce is another splendid e-commerce content management system. SalesForce proved its worth by winning multiple Awards like GSMA Glomo Award – for the best business mobile App category, DMN Award 2017, and the prestigious AOTMP Mobility Awards. SalesForce is currently hosting nearly 150,000 e-commerce sites. The unique attributes of SalesForce are enlisted below,

  • It provides a complete self-hosted e-commerce solution.
  • SalesForce powered up online store provides a seamless Omnichannel shopping experience to customers.

In addition to that, SalesForce provides multiple top-notch features as provided by any other CMS. Dissoftware experts witnessed SalesForce as the best CMS for large businesses. That looks for a fully customizable e-commerce solution.

Oracle Commerce

Oracle Commerce is considered the first and foremost e-commerce solution for the IT, Computer Science, and retail niche. Oracle is holding a 0.37% market share by powering up some of the most popular e-commerce websites.

Oracle Commerce is a highly customizable e-commerce solution and enables its users to sell complex commodities with multiple unconventional features. Dissoftware experts mark Oracle commerce as the best e-commerce solution for both B2B and B2C retailers. Oracle Commerce could be the best ecommerce solution; If you are looking to scale up your business after achieving initial milestones.

BigCommerce

BigCommerce is a popular, self-hosted eCommerce solution. BigCommerce is hosting nearly 150,000 e-commerce websites currently. Some of the top-notch e-commerce websites like Pandora – a popular jewelry store, are using BigCommerce as CMS.

BigCommerce is known for its robust business management, shipping options, order fulfillment, and multi-level reporting features. BigCommerce also provides a built-in version for B2B stores.

Volusion

Volusion is a self-hosted and robust e-commerce solution. Volusion is known as all-in-one e-commerce solution. It lets you handle all the eCommerce business features from the shopping cart, shipping calculation, tax automation, payment processors options, complex reports creation, to the check-out and social media integration from one platform.

Volusion is best for small businesses as it’s easy to use and customize.

Drupal Commerce

Drupal Commerce is an open-source CMS used to develop customizable eCommerce websites and Apps. Drupal Commerce has hundreds of modules that make customization as easy as pie. Drupal Commerce specially designed Kickstart package lets you develop & launch a highly converting online store in no time. Currently, Drupal Commerce has captured the 0.1% market share of the eCommerce business.

Dissoftware experts recommend using Drupal Commerce for large-scale merchandisers to manage diverse features with utmost ease.

 

Social media role in Ecommerce

Top-notch social media platforms like Facebook and Instagram can be used as online stores for small retailers. But it is not a wise step to use social media to replace eCommerce websites. It is recommended to build a proper eCommerce site to lay the robust foundation of your brand identity.

Meanwhile, Social media platforms can uplift your e-business by playing with enlisted SM features,

  • Represent your brand via stunning infographic photos and videos.
  • Use SM marketing tools to create brand awareness.
  • Reach maximum targeted audience to boost sales.
  • Provide quick & friendly customer service via SM platforms.

Reasons behind the shopping cart abandonment

Most E-commerce stores get flopped because of the high shopping cart abandonment ratio. Marketing techniques fail for such stores as they can’t convert visitors into clients. We have enlisted the reasons behind the shopping cart abandonment,

  • Extra charges like (taxes and shipping fees) at the checkout page
  • complex and lengthy checkout procedure
  • The too-slow delivery system
  • Necessary account creation before checkout
  • Trust issue as some customers hesitates to share their credit cards info to new sites
  • Dull designed checkout page doesn’t show the total bill clearly
  • website errors because of inadequate hosting or design

The Most Common Reason for Car Abandonment in the US

Try to tackle all these issues before starting the marketing phase of your e-commerce store.

What makes a successful e-commerce store?

Only a few stores have the guts to stay in the limelight from thousands of eCommerce stores. We have enlisted few key points for you to grab success for your eCommerce business.

  • Ecommerce website Design is the First foremost thing noticed by every customer in your store. Get a ready-to-launch, unique, attractive, and simple E-commerce website design from Dissoftware to win the race.
  • Provide 24/7 dedicated customer support to bring a sense of security and comfort to customers.
  • Value your customers’ feedback to improve your online store.
  • Understand your targeted audience buying behavior to improvise your eCommerce website design.
  • Take risks by trying new innovative ways to provide a better shopping experience to your customers.
  • Customer’s opinion matters, lets your customer write their personal shopping experience without any filter.
  •  Keep learning to continuously optimize your e-store to provide a better shopping experience.
  • Improvise to get rid of Shopping cart abandonment factors.
  •  Keep learning to continuously optimize your e-store to provide a better shopping experience.

Why E-commerce Website Design Matters

Website design is the first thing that a customer gets noticed while landing on your store. It could make or break your store image in the customer’s mind. As per 99firms stats,

  • Almost 75% of the e-commerce users judge the e-shop sites by their design.
  • 38% of the user’s lefts a dreary e-commerce website-designed site instantly.
  • 88% of the user never comes back after getting a single negative experience.

It is suggested to reach out to an eCommerce website development company like Dissoftware to get a customized and highly converting E-commerce website design.