What is ecommerce?
Definition, advantages and disadvantages of ecommerce websites and ecommerce business

Internet sales (also known as “ecommerce” or “EC”) are transactions involving goods and services conducted over the Internet. In other words, the familiar bustling city center and physical stores are replaced by zeros and ones on the Internet. It is estimated that 2.14 billion people worldwide will buy goods and services online this year. The number of Prime members shopping at Amazon stores currently exceeds 200 million.

Ecommerce is one of the many ways people buy and sell retail goods. Some companies only sell things online, but for many, ecommerce is one distribution channel in a broader strategy that also includes brick-and-mortar stores and other revenue streams. In any case, ecommerce makes it possible for startups, SMEs, and large enterprises alike to sell at scale and reach buyers around the world.

As a product business grows, most brand owners involved in ecommerce are faced with the following choice: Should we expand our internal operations to find ways to store, manage, and ship more inventory, or should we use shipping services? Here, we will introduce three possible solutions.

All of these points are strong motivations to begin ecommerce. Let's take a closer look at each of them.

In the 12 months up to December 31, 2020, the number of products sold by Japanese SMEs on Amazon.co.jp has risen to over 500 million items. Overall, ecommerce sales surged more than 30% in 2020. Much of the recent increase in online spending is due to the Covid-19 pandemic; however, experts predict this trend will continue.

In the past, the number of customers a product business could reach was limited by the number of people who could physically enter the store. It is now possible to reach customers around the world through ecommerce. The rise in Internet usage and the development of social media have made it easier for ecommerce business owners to reach diverse new purchasing demographics.

There are many different types of ecommerce, allowing buyers to browse options and purchase from anywhere with just a few clicks. Amazon makes it easy to categorize and compare products by price or function. Online settlement innovations like Amazon Pay further streamline the settlement process.

Creating and managing an ecommerce site is less expensive than traditional brick-and-mortar operations. You can start a channel for an ecommerce product business without renting retail space, hiring a team of employees, or having a large warehouse.

All of these advantages lower overhead costs. There is no need to worry about rent or building maintenance. In addition, online stores are open 24 hours a day, so there is no need to monitor or allocate staff like a physical store.

You can quickly establish your own ecommerce store using ecommerce website building tools and services. You can also launch a brand on social media or stores such as Amazon without building an ecommerce website. Many product businesses sell through a number of online channels.

Unresolvable technical challenges can have a negative impact on sales. Internet problems and hard drive failures can waste time and money, just as supply chain disruptions can prevent timely delivery of goods.

Remember that most technical problems that occur have solutions and precautions that can be taken. Be sure to back up your data regularly. Stores like Amazon can mitigate these risks by offering an established and reliable technical infrastructure.

Buyers are increasingly paying attention to how their information is stored and shared. Communicating the details of your privacy policy can help gain buyers' trust. Doing so shows transparency and gives customers peace of mind that their personal information will be protected.

Amazon has been working to build a safe shopping experience for decades. Product businesses that sell on Amazon benefit from the trust of customers cultivated over many years. If you’re hosting an ecommerce store on your own domain, you’ll need to find a secure payment processing service to prevent customer data from being put at risk.

When you're just starting out with ecommerce, it might be easy to pack and ship orders from your garage or a vacant room. But as your product business grows, it will take more time to ship orders. If orders increase suddenly, you may struggle to ship them. By using services like Fulfillment by Amazon, you can reduce the burden on your business and increase customer satisfaction.

Learn how to choose the right ecommerce shipping service and grow your product business.

There are several key factors to success with an ecommerce product business. To be successful, focus on the product first and foremost. Also, consider your brand message, your target audience, and the user experience of your store. You should also consider your shipping process to ensure that you deliver goods in a timely manner to maximize customer satisfaction. Let's take a closer look at each of these key elements.

Unique brands stand out, but being a great brand requires more than just great products. To capture the customer’s attention, you must communicate the purpose and vision of your business.

Ask yourself why your product business exists. How will your products enrich the lives of customers? Your branding should convey the answers to questions like this.

Set aside time to think about your brand’s image. Dig deep to find a simple yet powerful way to communicate the starting point and mission of your business.

Clearly identifying a target audience lets you attract loyal and enthusiastic buyers. What kind of people do you want to use your products? Target your marketing at those people.

Once your product business is on track, think about what kind of people will sympathize with the brand story in order to sustain that momentum. Instead of chasing customers who don’t need your product, focus on audiences that appreciate your brand.

An online store must be user-friendly. A well-designed online experience at your store will make buying easier. If the customer has to go through too many complicated steps, they will abandon the cart before completing the transaction, and sales will drop.

Successful ecommerce stores keep their products in the spotlight by streamlining their payment processes. Increase customer satisfaction by eliminating unnecessary steps and providing an intuitive and straightforward user experience.

Buyers demand speed and efficiency, especially when shopping online. Regardless of what they buy, customers want their purchases to be delivered intact and on time.

Shipping includes every step of the customer journey, from pressing the “Buy” button to opening the product. Successful ecommerce shops pay close attention to the shipping process and prepare enough products to meet orders even during busy periods.

There are no signs that online retail sales in recent years will decline going forward. Sales are predicted to grow to 6.54 trillion dollars in 2022.

During the 2020 holiday season (including Black Friday to Cyber Monday), global sales of independent companies using Selling on Amazon showed an increase of 50% or more compared to the previous year.

Amazon planned Prime Day 2020 to provide significant discounts to customers, help SMEs connect with more customers, and increase sales.