Concept of e-commerce
In simple words, the term e-commerce (e-commerce) covers absolutely any purchases, sales, and payments made via the Internet. Such a business, as SECLGroup.com team claims, has become a huge system that covers almost all countries and therefore has become a separate part of the global economy.
Online markets allow you to conduct all the same entrepreneurial activities: look for suppliers and buyers, pay bills, draw up contracts, but do it all via the Internet, from one point. Naturally, special rules and regulations are being developed for this, and unique software is being created, but the main idea is that e-commerce systems are available to everyone and everywhere where the Internet is.
What applies to it?
There are five main forms that characterize this area of activity. Each of them has already become extremely popular and is used all over the world.
The main areas include:
- Internet trading, absolutely any online store: in social networks, on the website, marketplaces.
- Electronic Data Interchange (EDI), including simple information sites.
- Internet banking and provision of insurance services through the network.
- Automated systems for collecting, processing, and storing data.
- Marketing in the form of collecting information that can be used to build a customer base.
Different types of e-commerce are used by different organizations with Internet access. The most suitable ones are determined solely by the specifics of the company’s work, its size, goals, and principles. E-commerce and banking, insurance services, and money transfers can be used equally successfully and simultaneously.
There are a huge number of advantages of using online platforms, and each of them works to generate new profits for the company.
- Opportunity to enter an expanded market at a minimal financial cost. It does not matter how far apart the seller and the end consumer are, they will be able to find each other anyway.
- The chain between the supplier and his client is significantly reduced. It does not require the involvement of intermediaries, which means that costs are reduced, but the original quality is maintained. In addition, it is easier to find your target audience.
- By being able to always stay in direct contact with your customers, the productivity and competitiveness of companies increases. They can work around the clock, any day of the week, and still not reduce the quality of service.
In short, e-commerce is an opportunity for organizations to increase their sales by reducing their initial investment, as well as improving the quality of their work.
There are also downsides to using the web, although all of them can be worked on to smooth things out a bit.
- Dependence on modern information and communication technologies, in other words, a stable high-speed Internet.
- The absence of a well-developed legislative framework that allows regulating processes.
- Loss of potential customers who do not like shopping online. For them, ordinary stores remain familiar.
- The danger of loss of confidentiality when making transactions via the Internet. Buyers are at serious risk of losing their money, even with the constant development of security technologies.
- An unresolved issue with the delivery of goods to the consumer, as well as the return of low-quality products.
As mentioned earlier, each of these problems can be solved. To do this, Cleverens implements high-quality software that automates and simplifies business.
Examples of issues hindering e-commerce
Since the activity on the global web is still new in the eyes of entrepreneurs, they face obstacles that interfere with normal work. Some of them are created by businessmen themselves.
Here are just a few of them:
- Banal inability to work in a network. Here, the trading process is based on other principles of order processing, logistics, and analytics. It is necessary to respond to requests in a timely manner so as not to spoil your own image. Delays inevitably lead to customer dissatisfaction.
- High competition. Only the laziest entrepreneurs have not yet begun to master the Internet as a place to find buyers and sales, which means that they literally have to fight for each “own” person.
- Consumer distrust. It is facilitated by a large percentage of fraudulent schemes used on the Internet.
- Personnel problems. On the one hand, freelancing is now becoming more and more popular, but it will be more difficult to train employees.
- The need to protect information. This side of the system must be developed very well, which means that it is necessary to use modern software, sometimes expensive.
All of the above difficulties remain solvable but require hard work. Otherwise, very broad prospects open up for organizations.
What you need to know before you start e-commerce
It is much easier to carry out your business online than to gain a foothold in the market and maintain your position in the future.
But here’s what to do first:
- Take care not only of a beautiful picture of your site but also of the convenience of its use. Customers should be comfortable here, otherwise, they will go to competitors without hesitation.
- Provide constant competent moderation. Falling errors repel ordinary consumers.
- Make product information as clear and understandable as possible. The main goal is for the client not to leave to look for the answer to his question on other sites, because, most likely, he will not return.
- Take care of the convenience of shopping. It is not uncommon for a customer who is in the mood to buy a product to back out simply because he or she is intimidated or put off by the last page where the order is placed.
In other words, you will have to spend a lot of money on creating quality content and taking care of its content. Only in this case, it is possible to implement a more or less profitable electronic project.
Internet trading is a modern convenient way to make transactions between all market participants. Literally, any organization and people with a stable connection to the network can become participants. At the same time, to complete the transaction, two parties are needed, acting as a seller and a buyer.