E-commerce reaches customers all over the world. Nowadays everything seems to have a place in the great world of the Internet. It is a market open 24 hours a day that offers great advantages to companies and consumers.
E-commerce has revolutionized the way we shop. Satisfying the needs of those who prefer to shop from the comfort of their cell phones. Unable or unwilling to leave home. The retail sector in pandemic time has gone from 16% to 19% in 2020 according to UNCTAD estimates. Adapting to the new reality and desire of users.
E-commerce is what is known as a virtual store. A method of buying and selling that uses the Internet as a means for you to make transactions and be in contact with your customers. Not only through a website, but also through social networks.
This business model has been key for small companies. Which gives the possibility to grow and access more customers. Something that is difficult to achieve by the traditional way and without the need for large infrastructures.
On the other side, medium and large companies can also reach new markets through e-commerce. Where being able to dispense with limitations such as time, space and in some cases logistics has been one of the main causes that have allowed its expansion.
E-commerce main advantages
A question that arises to many people is: why e-commerce has become a profitable business model in such a short time? The advantages over traditional commerce are very powerful, such as the following:
1. More customers
The ability to buy and sell from anywhere in the world expands the target audience and allows to get more customers, a situation that few businesses or companies with offices in several cities can achieve.
2. No opening hours
The web is open to the public 24 hours a day and the customer can buy whatever he wants whenever he wants, unlike stores, which have limited opening hours.
3. Lower costs
The simple fact of not needing a physical store reduces costs compared to a traditional business.
4. Higher profit margin
The reduction of costs and the increase of customers generates that, even by lowering the prices of the product, a higher margin can be achieved than with a physical establishment.
5. Scalability
This means that you can sell to one or a thousand people at the same time. In a physical business there is a limit to the number of customers that can be served at the same time without affecting the user experience.
Not everything is as it seems
Although e-commerce offers multiple and obvious benefits, it is advisable to analyze the possible challenges that can be faced in the online adventure and their solutions.
- Lack of trust: even though payment gateways have advanced so much that they are as secure or more secure than a physical business, many people still believe that there is less security, which generates distrust. This problem can be solved with an SSL certificate that encrypts the transferred information.
- Products that cannot be seen or touched: buyers like to feel that they are making a good investment and one way to achieve this is by touching and seeing the product, a sensation that is lost in an e-commerce because it is intangible. How to solve it? with product cards including: videos, images and detailed description. It is important to work on providing digital experiences that make the shopping experience a unique situation.
- Technical difficulties: in an e-commerce the technological part requires a minimum knowledge in the area, so the best way to solve it is to learn the basics and have the support of an expert in the field.
- Competition: in an online business to get visibility is more complicated than you may think, unlike a physical one that when opening its doors is exposed to customers who pass by the front. To achieve visibility in e-commerce it is important to invest in advertising and make a good segmentation to reach the desired audience.
5 steps for a functional E-Commerce
It is not difficult or unattainable to start it up, for them it is advisable to apply the following steps and of course a lot of desire to run the business, creativity to promote it and differentiate it from others.
- Hosting: an e-commerce needs a server where to be hosted, it is important to look for a hosting for e-commerce with a friendly speed. We provide private, public or hybrid cloud services so you can manage your business at the time you need and with the security you deserve.
- Website: it is essential to build a friendly, original, attractive and easy to understand website, where the customer can make their purchase without complications. In Interfaz we have the qualified team to design your website according to the needs of your business.
- Courier company: the speed and punctuality of the orders must be impeccable. Hire a reliable company that facilitates the customer the location of your order in real time.
- Payment methods: the more payment methods, the better the user experience. There are all kinds of customers with preferences for certain platforms, so it is advisable to provide them with options.
- Visibility: it is time to get customers and make yourself known, so it is advisable to be present in social networks, create campaigns through Google Adwords, launch offers, contests and be very active in the digital world. Do everything possible to make the brand known. Our company accompanies you in the development of digital strategies to achieve business objectives.
To conclude
E-commerce was born as an alternative for cost reduction and as an important tool in business development, forming a fundamental part in the Internet world, which knows no borders, timetable and is transforming the world, especially in the midst of the situation derived from the Covid-19, so it is important to evaluate this option to enter into e-commerce.
Do you want to launch your business into the digital world but still have doubts? Remember that we are here to support, guide and help you through the whole process. Let’s talk.
Sources: Unctad | Doofinder | Entrepreneur
