What Is E-Commerce?

The term E-Commerce describes the business transactions or the transferring of a product or a service completed online. Most familiar e-commerce settings involve the sale of merchandise or services from one company to either a consumer or another business through a seller’s website marketplace or store. Recent trends suggest that in some cases that e-commerce now outpaces sales at traditional retail outlets.

Why Should You Consider E-Commerce?

The growing popularity of being able to sell and buy goods online has propelled e-commerce to the top of news headlines as companies such as Amazon and Ebay eclipse their competitors in sales revenue and profitability. Despite the size of the dominant players on the Internet, businesses of all sizes can benefit from e-commerce as part of their business website. The main advantage to e-commerce is that it provides the consumer with the convenience of shopping on their terms without going to an actual store. 

computer-glasses-notepad-wood-rug-edit

The Benefits of E-Commerce

For any business wanting to make themselves more available and connected to their customers, e-commerce may need to be a high priority. Here are a few specific benefits of why you should consider e-commerce for your business:

  • Constant Availability: The explosive popularity of mobile devices such as smartphones and tablets has created a huge pool of shoppers that can buy anything wherever and whenever they want to buy it. Online stores that operate mobile-friendly e-commerce sites can sell all day, every day without the need to operate a physical storefront. This means your store is virtually never closed. Businesses that fail to make themselves available to their always-connected market leave sales on the table and send customers to competing firms.
  • Global Accessibility: E-commerce has given every company a chance to overcome the limitations of their local market by selling globally. Every day, a bigger part of the world’s population gets connected to the Internet, giving e-commerce businesses unlimited opportunities to grow their customer base.
  • Unlimited Exposure: Search engines continue to attract a substantial portion of Internet users. People needing products or services find solutions on sites such as Google, which connects them to relevant providers. Companies that take advantage of marketing strategies such as SEO or PPC can count on exposing their brand to a growing audience of prospective buyers.
  • Improved Communications: Website analytics tell business owners what they need to know. Businesses can arm themselves with unique information about their visitors and tweak their operations quickly to adapt to changing customer demands. Reports from services such as Google Analytics supply detailed information about visitor behavior that e-commerce firms can use to boost sales and eliminate the cost of carrying unpopular merchandise.
  • Reduced Costs: Companies can eliminate the overhead associated with brick-and-mortar stores and use the savings to reduce their prices and increase their margins. After establishing an e-commerce presence, the cost of maintaining an online store becomes almost inconsequential. With low transaction costs, every incremental sale often results in more profitability. Businesses that reduce marketing expenses by exchanging expensive print and broadcast advertisements for inexpensive targeted online ads get better results and reach a huge pool of qualified buyers. Social media and search engine advertising can produce incredible returns on investment.
  • More Connections: E-commerce gives companies a fantastic way to improve customer relationships. Businesses can use cloud-based tools to coordinate their marketing and sales efforts and provide excellent customer service. Tools such as live chat and social media have reduced the distance between buyers and sellers, increasing the feasibility of establishing long-term mutually beneficial relationships.

Unlimited Opportunities

Newcomers to e-commerce can find valuable niches they can use to build a sustainable competitive advantage. Despite the intensely competitive online landscape, a business can create products and services that meet the demand of unserved market segments. Finding and identifying such niche markets in the past involved expensive market research and experimentation. Now, business owners can easily keep tabs on competitors and find innovative ways to differentiate themselves by adding value to their target market. Having E-Commerce on your website could be the difference to help separate your business from the pack. 

How We Can Help

Interested in implementing e-commerce for your business? Let our team spend some time with your business and consult with you on how we can help your reach grow. To schedule a time with our team, contact us by calling (918)379-9400 today.