For founders, there are economically interesting opportunities in the growth market of E-Commerce, i.e. through an online shop. But which is the right shop system? How do I become an amazing Seller? We introduce you to the topic of E-Commerce and E-Commerce Development Company and answer the most important questions about online trading.
What is e-commerce? (Definition)
The term e-commerce, short for electronic commerce or electronic trade, describes the entire trade on the Internet, including the purchase and sale of goods on the Internet. E-commerce not only includes online shopping, but also other areas of e-business, such as online banking or customer service. In general, however, the term e-commerce is mainly used for online shopping in general usage.
E-Commerce Development Company: How do they work?
If you wish to start an e-commerce store as a founder, then you should consider: Do I create my own online store or do I sell my goods through a marketplace?
Your own shop: With your own online shop you are a lot more flexible as a founder, but you have to put a certain amount of time or money into building the shop. The advantage: you are and remain your own boss and control the entire process. In addition, you do not pay a sales fee to third parties.
Marketplace: Amazon and Ebay together have a 66 percent market share in e-commerce. None of the competitors get beyond 2 percent. When selling through a marketplace such as Amazon or Ebay, you can benefit from its huge customer base and generate revenue from Day 1. However, the marketplace operators earn money with every product sold and make important decisions about the conditions under which they can be sold.
Since both models have advantages and disadvantages, it is advisable to work with a combination of your own online shop and sales through marketplaces. You will undoubtedly find faster customers in the established marketplaces, but most of the money remains in your pocket in the long term in your own shop. It usually takes years until an online shop is established, while you can get started right away in marketplaces. Provided you have a product that is wanted and bought. Products can also be tested very quickly and easily via a marketplace.
E-commerce to support brick-and-mortar retail
The counter retail has suffered for many years under the e-commerce. First, e-commerce was ridiculed as a short-term trend, then cursed by retailers due to its growing market share. In the meantime, however, there has been a rethink in stationary retail: under the technical term “multichannel”, classic retailers are no longer just stationary, but also in e-commerce.
The retailers use different forms of multichannel sales . Some operate on two tracks and offer their goods separately in terms of price and logistics – that is, online and offline. In the meantime, however, it has emerged that a close connection between e-commerce and brick-and-mortar retail is the most economically effective. In this way, the advantages of classic retail can be used by collecting online orders, for example, postage-free in the retail store. Likewise, customers can be lured into the shop, for example, by special offers that they receive online.
Shop systems for successful
If you want to open an online shop , the first step is to choose a shop system. You can choose between a shop kit, a plugin for WordPress or a self-hosted shop software. Since this decision has to be made in the long term, you should take your time with this consideration and inform yourself well.
If you have only a few products and the online shop is only an additional option for your customers, then a shop kit may be recommended. Such systems require no programming knowledge, are quick to set up and cost little. However, they lack flexibility and functionality. And above all: the shop does not belong to you, but to the provider. If he changes his business policy or closes his offer, your shop is at risk.
If you are already running a WordPress blog, you do not have to start a completely new project, you can virtually “upgrade” the blog – a shop can be easily integrated using Shopware or open source solutions for WordPress. A good compromise solution, because then the shop is at least integrated on its own website.
If you want to sell a lot of products and generate larger sales online, then you cannot avoid professional shop software. A good shop software can be completely adapted from the design, individual functions can be supplemented and all important payment methods can be embedded. If you are technically very fit, you can operate such software at low cost yourself. If the necessary know-how in the field of web development is missing, then external agencies are available to take over the complete technical handling.
Online payment systems
According to various studies, the selection of the right payment method is probably the decisive success factor in e-commerce: If the payment method preferred by the user is not offered, the purchase is often canceled. But which are the online payment systems with the greatest popularity in e-commerce in India?
Other payment systems such as prepayment, immediate transfer or wallet payment play a subordinate role in e-commerce. The use of all these payment methods in your shop enables so-called payment service providers, which act as an interface between the individual payment methods and online retailers in e-commerce.
These payment service providers have different cost models, but the following generally applies: a small percentage of each payment transaction must be given to the payment service provider. Some of the providers have monthly fixed costs. Choosing the right payment service provider is an important step in setting up an e-commerce company and should therefore be done with care: payment systems at a glance.
Advantages of online trading on the corporate and customer side
E-commerce, especially online shopping, of course, offers both companies and customers numerous advantages:
- Speed: Purchase processes can be carried out and processed without delay; the product arrives very promptly
- Customers can order around the clock and are not bound by retail opening hours
- Convenience: Customers can flip through online catalogs at home, browse through shops, choose the desired product and pay for it
- Overcoming spatial distances
- Many e-shops offer a 24-hour service; Generally quick response to problems and inquiries
- Better comparison options between price and product
- Customer needs are optimally met; high customer satisfaction
- High efficiency: Online shopping not only speeds up the sales processes, but also minimizes personnel costs
- Low transaction costs: checkout, inventory and shop systems automatically monitor inventory and cash flow; the establishment of branches may become superfluous