eCommerce has been a bridge between retailers and customers thanks to the constant development of the internet and technology devices, such as smartphones and computers, creating an extremely attractive and also effortless playground.
So, what is an eCommerce store?
If you don’t have basic knowledge about eCommerce, you won’t know where to start. Furthermore, mastering your eCommerce store is not that simple when each source you can find gives different information.
Fortunately, with over 6 years of helping many customers get used to eCommerce platforms, we’ve covered everything you need in this article. And we promise you won’t take more than 15 minutes.
Let’s dig into it!
1. What is an eCommerce store?
eCommerce history
First, to understand eCommerce store meaning, we will go through a bit of eCommerce development history in the world.
Consumers have known to buy online widely since the mid-90s, a milestone marking the rise of channels providing services and products like eBay and Amazon. Since then, the number of users on online services has increased rapidly. eCommerce has gradually entered people’s lives. You may also have been involved in this kind of transaction but accidentally ignored what it was.
eCommerce store definition
Here’s what it looks like:
eCommerce is simply an exchange between a buyer and a seller (goods or services) over the internet where its forms are either B2B, B2C, C2C, or C2B. This process includes using the internet to make purchases, transfer money, data to make these transactions, etc.
And the eCommerce store is where these transactions take place. In other words, as a seller, you will manage the catalog of goods, advertise, consult purchasing, sell, provide payment options, and update shipping orders, etc. at your online store. Businesses of an eCommerce store on Facebook are also popular now.
2. eCommerce’s pros & cons
You’re now thinking:
“eCommerce is appropriate for me, isn’t it?”
There are dozens of reasons why we recommend having an eCommerce store. But we also don’t want you to spend too much time scrolling through tons of its features to find the ones fitting you the most. Thus, let’s take a look at some of the most important advantages of the eCommerce business.
Highlights
- Global market
One of our favorite things about eCommerce is how far we can reach. When you run an eCommerce store, you are not limited in terms of geographical distance, the number of leads, or the cost of entering a global marketplace.
- Possibility
The next advantage that we have here is the convenience that customers always love in eCommerce stores – 24/24. This is a strong point that a traditional store can hardly compete with this type of business.
Besides, operations such as payment gateways for eCommerce or delivery are also very fast and handy with just one click. And especially, you do not have to move to a certain place to work but can sell goods or reply to customer messages anywhere!
- Saving
eCommerce platforms do a pretty good job adapting many sellers’ need of not spending too much capital. You will save some expenses, such as labor costs, store maintenance, or warehouse, etc.
- Inventory management
Most brick and mortar store owners will need software to manage their high quantity of inventory if they want to save time and effort. In comparison with eCommerce platforms, all of these operations are extremely straightforward and you will be supported to run them right on the online store. Conveniently, right?
- Understand the habits of customers
Let’s look at how quick and accurate eCommerce helps you track customers’ buying habits. Not only does it provide you statistics about the items that are searched the most, but these platforms also encourage buyers to leave ratings or comments in product reviews after they use the goods.
As a result, you can come up with the right marketing strategies that are consistent with the user experience on your website.
Drawbacks
- Lack of trust
This is the biggest obstacle coming to customers when choosing to buy online. They are unable to test the product or verify the origin, materials, etc. whether they are exactly as provided by the seller. Therefore, although this type of business has grown quite safely and there is also a guaranteed third party (eCommerce marketplaces), it will take quite a while for consumers to fully trust to spend money on buying online.
- Highly competitive
It is not too complicated to understand! In a market that is supposed to be potential, there will be a lot of people who want to enter to exploit and make a profit. When supply exceeds demand, customers will have a variety of choices. Undoubtedly, they are those who benefit the most.
So, to attract customers, you will need to make smart and appropriate steps on your online stores.
Source: https://magenest.com/en/ecommerce-store/
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