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Ecommerce 101: What You Need to Know

by | Jun 21, 2021 | Development, Marketing

Think about the last time you made a purchase online. How long has it been? A month? A week? Maybe just a day? As you can see, online shopping has quickly become an integral part of everyday life for people across the world. 

What is Ecommerce?

Also referred to as electronic commerce, internet commerce, or online commerce, the term ecommerce refers to the buying and selling of goods or services via the internet. Four basic models of ecommerce include B2B (Business-to-Business), B2C (Business-to-Consumer), C2B (Consumer-to-Business), and C2C (Consumer-to-Consumer.) These categories help classify who the online interactions are happening between.

B2B

The business to business model is when a company sells products or services to other companies. Amazon Business is an example of an online B2B model. It’s very similar to Amazon, except tailored to the needs of businesses rather than consumers.

B2C

The business to consumer model occurs when products and services are sold directly between a company and a consumer. An example of a popular B2C company is Netflix. This B2C model charges its consumers a monthly fee to access their TV shows and movies.

C2C

The consumer to consumer model is a type of commerce where consumers sells products or services to other consumers. A well-known example of C2C includes Craigslist, a website for consumers to add listings for jobs, housing, items for sale, items wanted, services, and more.

C2B

The consumer to business model is when a consumer provides a product or service to a company. Google Ads is an example of a C2B where consumers give up some space on their website for businesses to place their ads and gain commission from any conversions.

Ecommerce Statistics

Ecommerce is booming, and here’s some interesting facts according to Oberlo to prove it:

  1. Ecommerce in the United States grew by over 40% in 2020.
  2. Last year, the US total for ecommerce sales reached nearly 8 billion dollars.
  3. By the end of 2021, there’s expected to be over 2.14 billion digital buyers, which accounts for over 27% of the world’s total population.
  4. In 2021, ecommerce sales are expected to exceed 18% of retail sales worldwide.

What is Ecommerce Software?

Ecommerce software is the behind-the-scenes work of an online business. This type of software drives all online store processes such as managing inventory, adding/removing products, processing payments, and more.

Examples of Popular Ecommerce Sites

Amazon.com

Amazon Logo

Ebay.com

Ebay Logo

Etsy.com

Etsy Logo

Walmart.com

Walmart Logo

What Are The Benefits of Ecommerce Software?

Open 24/7

Ecommerce software makes your business available 24/7. Without the restriction of hours of operation, consumers are allowed to shop whenever they please, increasing your business’s sales.

No Customer Limits

Instead of only reaching customers local to your business, you can now reach customers from around the world. Being able to sell to anyone in any location opens a huge realm of opportunity for your business.

No Space Constrictions

A great part about online stores is that there isn’t a space restriction like physical store locations. This means your business can carry, display, and sell as many products as desired at the same time, without consequences.

Online Convenience

Online transactions are made safe and secure through built-in or integrated payment services. This means you can enter your credit card information or login to your PayPal account without leaving your house.

Built-in Marketing Tools

Most ecommerce software includes powerful marketing tools such as search engine optimization (SEO) to attract your target audience and achieve higher search engine rankings.

Overview

In its earliest form, ecommerce was introduced over 40 years ago. Since then, electronic commerce has helped businesses grow through continuously innovating technology. Ecommerce has evolved a great extent over the last four decades and is only expected to continue to boom.

Thinking ecommerce software could be a good investment for your business? Let’s discuss what this could look like for your company today.

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