What is E-commerce?
When the purchase and sale of a product are done through the
Internet, it is known as “e-commerce”.
• It is said that the first e-commerce transaction was made on
11 August 1994.
• A person sold a C.D to his friend on a website called “net
Market” in the U.S.A.
There has been a lot of advancement from 1994 until now.
• A CD was sold that day but today, the whole world is running
With the help of c-commerce.
By the end of 2020, global e-commerce retail will amount to approximately 27 trillion dollars.
Digital adoption is growing very faster in India.
• Many people are using the Jazz Cash app.
All this is e-commerce.
• We will become a digital-driven trillion-dollar economy by 2025.
• According to many reports, by 2022 Internet penetration will reach a level where 60% of Pakistan will be connected through the internet.
By 2027, the middle class of India will overtake the U.S and China.
Today, the middle class is the largest consumer class.
• These are the people who buy products and want to improve their lifestyle.
• For them, it is very important to get connected to the internet.
• They are the consumers who are buying and selling products on portals such as Amazon.
• In the next 3-5 years, India is going to be the largest consumer market of e commerce.
Now, the questions are:
• Are you ready to serve these consumers?
• Are you ready so that your business reaches these consumers?
What are the types of an E-commerce business?
You can adopt any of the following types for your e-commerce
Business
1. B2B (Business to Business):
You are running a small business and selling goods to
large business.
• For example, Alibaba.com is a platform that transacts with
B2B platform.
2. B2C (Business to customer):
• In B2C, businesses sell goods to consumers like Daraz.pk.
• You can directly buy the product on Amazon.
• So, you are a business that is selling the product to
customers through an internet-enabled platform.
3. C2C (Customer to customer):
They are drop shipping platforms or social selling.
4. C2B (Customer to business):
Consumer sells goods/services to the business.
For example:
• You are a freelancer.
• You can provide services to businesses.
• A startup wants you to design their business cards a
Brochure.
Many freelance platforms are available on the Internet today.
You can make your profile and sell your services on these platforms.
What are the types of e-commerce websites?
As e-commerce is internet-enabled, the transaction will take place
through a website or an app.
The following are 9 types of e-commerce websites:
1. Megamall
. In the mega mal, large malls are converted into online apps.
Today, all your departmental stores are available online.
You will find all things on a website or an app.
A large departmental store is available such as Daraz Mall.
2. Marketplace:
There is buying and selling a large number of people.
On Amazon, one person sells while some other person buys the product.
Amazon makes a commission in between.
3. Deal maker websites:
Deal sites are beneficial for both customers and businesses.
Both of them can find deals on the internet.
When a customer gets discounts, chances are high that he
buys the product.
This is a win-win for everyone.
Customers get discount and businesses finds non-consumers that are converted into customers.
Therefore, dealmaker websites convert non-customers into customers.
4. Vertical marketplace:
You will find only one type of product.
For example:
Etumax.pk sells only Royal honey
They have to build a large platform only for one type of product.
5. Auction site:
There is bidding on the auction site.
• Auctions sites are very useful because you find a good deal.
• If you bid at the right time, you will win in the auction.
6. Community buying:
OLX is classified in market places.
• You can place advertisements and the buyer shows his interest in buying your second-hand products.
• In community buying, the community sells products and the community buys the products.
7. The Aggregators:
They are the people who aggregate information or product.
For example:
• In Polocybazaar.com, you can find the insurance policies of Many companies.
8. Facebook commerce:
• Facebook shows you many products when you scroll the Facebook page.
• You can use Facebook commerce to sell your products.
9. The single brand crossover:
• Established brands launch their websites such as luxury watches and cars.
• This is called a “single brand crossover” which means a single brand website with all the information of a single brand.
Why do sellers face losses in an e-commerce business?
1. Cost:
Suppose you are not a manufacturer but you have procured any product for Rs.2.
• You sell this product for Rs.20. You think that you have made profits of 10x.
• It seems like 10 X but there are many hidden costs in e- commerce and you might face loss in this situation.
• This is the reason why many people think e-commerce business is not good because you never know when you face losses.
• So, you should use a calculator on this e-commerce course.
You will never face loss in e-commerce if you understood this calculator.
Do you need special technology training to learn e-commerce?
You should know about the following basic technologies for e-commerce business:
2 CRM:
You should know about customer relationship management.
3 Digital marketing:
You should know about proper presentation and copywriting.
• Also, you should have an understanding of branding.
• You should know the message that should be delivered to attract customers.
4 Google analytics
You should know about Google analytics.
Does e-commerce business requires huge investment?
Many people fear that if they don’t have crores of money in their bank account, they can’t do e-commerce business.
This is not true.
• You should start a small business, remain profitable, and then establish a large e-commerce business.
4. Is e-commerce logistics very tough?
Logistics depends on the scale.
• if you choose the right logistics vendor, you will never be disappointed so I suggest choose TCS
• If your business is small and you choose a large logistics company, there will be losses.
• You should choose a logistics brand depending upon the size and scale of your e-commerce business.
In this blog, you have understood what, why, and how of e- commerce
Now you should move ahead with knowledge and clarity and not fear.
You will keep your first step in the world of e-commerce.
Best of Luck,
Ahmed Bin Haroon
