Internet commerce or Electronic commerce is the term used to describe the purchase and sale of goods and services, on the internet, in virtual reality, and this term is popularly known as eCommerce.
The eCommerce industry has been evolving beyond imagination, with rapid technological support to enable ‘Shopping at your fingertips’ as we know it today.
Different eCommerce Business Models
The industry operates in several modes based on the audience and services provided by a business. Few various types of eCommerce models, categorized are:
Business to Consumer (B2C):
The B2C or Business to Consumer eCommerce model works around the model of businesses selling goods and services to consumers directly.
Businesses provide their customers with various services via their websites or marketplaces, and the transaction of services takes place directly between the two.
Example of this type of business model includes – eBay, Amazon.in, Myntra.com, etc.
Business to Business (B2B):
The B2B or Business to Business eCommerce model is based on the services provided by one business to another or transactions between the two businesses. This kind of model may work for businesses such as retailers and wholesalers.
In this model, a business can provide supply chain solutions to other businesses, and not to the consumers directly.
Companies can purchase products like raw materials for use in the manufacturing processes from another business.
Example of this type of business model includes – Alibaba, AmazonBusiness.in, etc.
Consumer to Consumer (C2C):
The C2C or Consumer to Consumer eCommerce model is when a consumer sells goods to another consumer, without the involvement of any big firm or organization.
Example of this type of business model includes – Etsy, Quikr Craigslist, and OLX.
Consumer to Business (C2B):
The C2B or Consumer to Business eCommerce model is defined as a service offered by a consumer to a business. Selling refurbished goods is also a part of this model.
This mode is quite popular these days as eCommerce businesses encourage consumers to share their experience with the product they bought and give it a rating to help other buyers make the right choice.
Example of this type of business model includes – Trip Advisor, Fiverr, Naukri.com, etc.
Different Components of the eCommerce ecosystem
With different choices, the eCommerce industry operates in various domains that define each business's services and enables the categorization of systems.
The various components of the eCommerce ecosystem include:
- Demand Channels
- Inventory Management System
- Online Marketing
- Shipping/ Logistics
- Accounting
- Payment Gateway
- Customer Relationship Management (CRM)
- Channel Management Software
- Enterprise Resource Planning (ERP)
Mainly for businesses, the main aim is to increase sales, acquire new customers, and maintain good customer relationships enabling faster, more efficient, and highly accurate services.
To enable this, you need to have a thorough understanding of what works best for your customers and what more can be done to your business to increase overall profitability.
How to Start Your eCommerce Business?
Building up an eCommerce business requires more than just a product, it requires complete knowledge of what is in demand and the growing online market. To turn a business into a successful enterprise, one must follow these steps:
– Make Sure of Your eCommerce Business Model
Among the 4 major business models mentioned above, you need to first understand which model does your business fall into. On that basis, you can move forward to the next step.
– Decide whether to build a website or go for a marketplace
A crucial aspect to clear out before you kick start your eCommerce journey is to choose between building a website or to go for a marketplace. This important decision helps you further plan your requirements.
If you decide to go for a marketplace, you will take third party services such as Amazon, Flipkart, etc. And if you wish to go for your website, the first thing to keep in mind is to focus on cataloging insightful content that can be easily absorbed by the users along with quick step navigational features to place an order, as you will be building your audience from scratch.
– Get your business registered, facilitated, and ready to roll
Once the above things are complete, the next step is to get your business registered, to be able to run successfully. In addition to registration, you may be required to get a Business License, Employer Identification Number, Permit Rights, etc.
– Create an Attractive Product Line
Your products are your sales, so make sure to showcase every product in the most attractive way possible.
– Educate your Customers First
You may know your target audience, but the same audience needs to know all about your business by all means possible.
Social media, especially Facebook, Instagram, and Whatsapp have become the new marketplace for budding startups.
Promote your brand on different social platforms, connect with them, and give them the chance to advertise your business by encouraging them by sharing their valuable testimonials regularly.
– Ensure a Hassle-Free Checkout Processes
Nothing spoils an experience more than interrupted checkout processes, so focus on customer experience first, right from Checkout to payments.
Collaborate with a partner that allows payments from all methods, including debit cards, credit cards, net banking, COD, UPI, etc.
– Figure out the Perfect Logistics Partner
Logistics is the backbone of any eCommerce business, and so it is one strong facet.
Onboard a partner for complete management of order processing to shipping and delivery, while giving you, as well as your customer, real-time updates on all developments.
The best way to kick start your eCommerce business is to integrate with a platform with 360-degree solutions to cater to all their requirements to ensure growth in business.
Unicommerce is one such leading eCommerce cloud-based solutions provider that ensures the best possible solutions for your business right from maintaining multichannel order and inventory to offering best warehouse management solutions, returns management, providing collective integrations with 100+ global marketplaces, logistics providers, carts, ERP, and much more.