E-Commerce Guide 2022 What are its types and secrets of profit from it
In the Middle East and North Africa region, electronic commerce has increased from $18.6 billion in 2016 to $41.5 billion in 2020. According to recent surveys, the purchase of products and services in Arab countries is increasing at a rate of over 45 percent each year, compared to 20 percent in Europe and 35 percent in Asia.
Egypt, the United Arab Emirates, Saudi Arabia, and Kuwait are among the major Arab Internet marketplaces, with yearly sales totaling several billions of dollars.
And because e-success commerce's has piqued the interest of many business owners who want to learn how to trade online, work with it, and succeed like those who have done so successfully in the past, and whether there are any requirements or secrets to starting a lucrative e-commerce in 2021.
All of these and other concerns will be addressed in the following lines of today's article on the e-commerce blog "Forbesi."
We'll start with the definition, then move on to everything linked to electronic commerce, how to operate and prosper in it, and how to take advantage of the millions of customers who use the Internet and social media platforms throughout the world.
What is the definition of e-commerce?
E-commerce is described as any commercial activity that takes place over the Internet, meaning that all transactions, whether buying, selling, or managing trade, take place online.
Let us explain everything to you in further detail.
E-commerce refers to the process of presenting commodities from products or services through any electronic means of sale, such as an online store or social media platforms, for you as a merchant (Facebook, Instagram). This is in addition to tracking orders, sales reports, customer assessments, and other online business transactions.
For the shopper, the concept of e-commerce is to complete all steps of the purchasing process, whether products or services, entirely online, beginning with visiting the store and selecting the product, continuing through the purchase confirmation process, and ending with the payment process if you choose to do so electronically.
Before you begin your journey into online commerce, we must first understand the goal of the e-commerce process for both the merchant and the customer.
To have a complete understanding and awareness of the type of electronic commerce that you would like to choose and work with, you must first become familiar with the most common types of electronic commerce. These types are as follows.
What are the many kinds of e-commerce?
Due to the criteria for identifying the sorts of online commerce transactions, there are multiple types and forms of e-commerce all over the world in the commerce sector.
We discovered that the categorization is split by more than one criterion, but we will focus on the two most essential and prominent categories in our guide on how to get started working in e-commerce because of their importance and relationship to us.
Let us continue and demonstrate these sorts.
First, there are types based on the two parties involved in an e-commerce transaction.
The seller and the buyer are the two parties to the transaction, and they are one of the criteria for identifying the e-commerce system based on who is selling and who is buying. This type is separated into several categories, as follows:
1. B2B – Business To Business
B2B trade is a transaction between two parties who are merchants or sellers of different types of items and services. That is, the seller is a merchant, and the buyer is either a merchant or a small company owner.
💡 For example, consider a brand that sells office supplies, and the consumer is another brand, such as businesses and employee organizations.
2. Business to Customer (B2C)
This is one of the most popular sorts of e-commerce, attracting a big number of people who are thinking about beginning a business, whether traditionally or online.
It is a contract between two parties, one of whom is the merchant or seller who offers goods or services to the other, who is the buyer, i.e. a contract between the corporation and the customer.
💡 For example, suppose a company sells garments and the customer is an individual shopper.
3. Customer to Business (C2B)
This type of trade was not well-known until recently, and electronic commerce may have played a role in its rapid growth.
This transaction takes place between two parties, one of them is a company or a brand that is the buyer, and the other is an individual who is the selling, but how does it work?
The following are some of the most well-known examples of this form of trade:
Freelance platforms are websites where a freelancer can register to sell his or her skills to the beneficiaries of company and institution owners.
For example, if a freelancer creates articles and offers his skills via an electronic
platform, magazines and newspapers will eventually agree to buy and use his services.
The independent is the vendor, and the newspaper institution is the buyer in this situation.
4. Customer to Customer (C2C)
The buying and selling transaction in this sort of e-commerce is between two consumers, with no brand or company engaged in the transaction.
Electronic storefronts and Facebook groups that offer things for sale to individual other consumers and collect a commission for each sale are among the most well-known examples of this type.
💡 For example, the global eBay site allows individuals who shop online to subscribe to the site and sell their things to others.
5. Business to Government (B2G)
Some people believe that government agencies are self-serving or that they have their own sources of resources and services.
But this is not the case; even governments are looking for suppliers and companies that can provide them with what they need, which is exactly what B2G e-commerce is for.
It's a partnership between a brand and government agencies, with the brand selling and promoting what it has to offer to government agencies in particular or to all consumers in general.
💡 A website design company, for example, that creates a website for a government institution so that citizens can execute government transactions on it.
6. G2B - Government To Business
The converse is true here, with government entities providing services or products to businesses and brands via the Internet.
For instance, offering electronic payment services or tax system management services to a person via the Internet via the website of the government agency in charge of this duty.
Second: online commerce types according to e-commerce business models
1. Wholesale business model
The selling of wholesale products to the buyer, who is one of the merchants or owners of electronic retail stores, is the basis of this type of electronic wholesale commerce.
The " Ali Express " website, which sells a large variety of different products for wholesale to any shop, is one of the most well-known examples of this type of e-commerce transaction.
Please bear in mind that, in contrast to retail or dropshipping, you will be charged for purchasing, storing, and caring for a big quantity of products.
2. Business model for retail
Retail commerce is one of the most well-known and widely used types of e-commerce, which involves setting up an online store or owning any electronic sales channel to sell commodities, products, or services.
For example, Amazon is the world's largest and most well-known retail store, along with numerous others like as "Souq, Noon, Jumia."
3. Trade in Dropshipping
Dropshipping is a new type of e-commerce that has exploded in popularity in recent years. It's all about establishing an internet store that buys things from the wholesale store and then sells them as if it were a retail store.
As can be seen, there are numerous types of e-commerce that are classified into various categories and formats.
As simple as it is to establish a business and sell online, you must first investigate all of the options and decide which one best matches you and your business objectives and goals.
Many advantages and benefits exist for online trading and selling, and this is, of course, a major motivator for many people to start their business online.
As a result, a separate paragraph must be dedicated to presenting the most important advantages and benefits of electronic trade.
What are the advantages of electronic commerce over the Internet?
There is a lot of discussion about the benefits of the well-known electronic commerce of quick profit and a lot of other things, but electronic commerce is another component of the profits that is just as essential as the above. This is what we'll talk about in the following paragraph:
1. No need for large capital
One of the most significant advantages of working online is that the business owner does not require a significant amount of capital compared to what is required to own a traditional commercial store, which requires a significant amount of money to prepare and equip as well as pay for electricity, management, workers, and other expenses.
However, with e-commerce, you don't need a lot of money to cover any of these expenses because they don't exist.
All you need to start an online store are a few simple charges for domain registration and hosting, as well as some other costs linked to the products and services you sell, which will be refunded to you after you sell and profit.
2. Workplace convenience and flexibility
E-commerce relieves you of a lot of the business, details, and administrative responsibilities that traditional businesses and business owners have to deal with.
For example, you will no longer have to manage your employees or employees; instead, you will work and own the administration of your store through a control panel from which you will be able to control everything with the click of a button.
When it comes to controlling the amount of products or inventory of goods, you can track inventory management without having to perform an inventory or go through any of the manual hassles that come with operating a shop by registering and entering all of this data on the control panel of the online store.
It will also save you the time and effort of speaking with the consumer and assisting him in selecting the finest option for him. When a consumer comes into the business, he can go about and look for what he wants in terms of sizes, colors, and patterns, then choose what he wants and complete the purchase process without messing with any of your data.
This is in addition to the benefits provided by the shipping and online payment concerns; you won't require accountants or administrators to compute costs, calculate sales percentages, or separate earnings from costs.
Because of all of these complicated and time-consuming administrative tasks, you may quickly handle them through your store's management panel without any difficulty or effort.
As a result, online business and commerce improve in many ways over traditional commerce, which requires owners to deal with business, administration, accounts, and a slew of other inconvenient concerns.
3. Quickly improve and scale your business
Instead of operating a store in a mall in a province or town, you may reach consumers all over the world with an internet business and an online store.
This expands your brand's market and allows you the opportunity to go global, develop, and grow your company over time.
According to commerce and the phenomenal success of e-commerce companies, accomplishing this online is far easier than accomplishing it in the real world, especially given the inconvenient government red tape that differs by country.
4. Assist in the development of the community
Indirectly, the merchant may not be affected directly, but we cannot ignore the fact that internet commerce helps to the growth and development of society in general, as well as the commercial and economic fields in particular.
This is due to its numerous and adaptable qualities, which allow many people of various sexual, age, psychological, and social traits to participate.
💡 For example, one of the advantages that e-commerce has brought us is an excellent answer for a woman who wants to work but is unable to do so due to her family circumstances or community norms. Women can now work from home without having to deal with many of the societal barriers that obstruct their employment and success.
In addition to assisting women and girls in starting their own businesses, e-commerce also assists another element of society, namely the youth.
It enables young people to work at any age and in any situation without the necessity to have completed a university degree or have a social security number.
Any young man can start his own online business, whether through commission marketing, dropshipping, or running his own website.
5. Ease of communication with your customers
You may communicate with your customers effortlessly and professionally by using modern e-commerce tactics and technologies. Knowing their thoughts on your service, as well as the products and services you give, can help you strengthen and improve your relationship with them.
All of this saves you time and money by eliminating the need to conduct several surveys and analyses, which might take months using traditional approaches.
Everything has gotten easier and more instantaneous as a result of the Internet's presence, due to technology and artificial intelligence that allows you to anticipate your customers' thoughts and respond to their demands swiftly and professionally, maintaining their loyalty and faith in your business.
- Platforms for social media.
- Chatbot application on your online store or chatbot.
- Reviews and opinions of customers on the store.
6. Achieving higher selling rates
By 2021, there will be 2.14 billion digital buyers worldwide. Statista is eagerly awaiting your offer to sell them your goods or services.
This number is constantly increasing at every moment, and with it the sales rates of your business and the trade of any electronic brand in its various fields and activities.
As a result, ensure that your sales and profits double every time you sell online, and you will achieve more than you would if you sold in traditional commercial markets.
With these figures and the incredible achievements of the world of commerce and online selling, we believe that another successful firm cannot exist without internet commerce.
Many people today choose e-commerce as a means of starting their own business and achieving a large and assured profit.
And if you're reading this, it's because you want to build a website to sell things or services online, which means you'll need a professional online store.
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Second: Marketing through social media platforms
More than 3 billion people utilize social media sites throughout the world. Following the creation of your online store and the addition of the products or services that you will offer to the general public, you must create accounts for your brand on numerous social media platforms, including Facebook, Instagram, YouTube, Snapchat, Twitter, and others.
After executing a step of assessing and defining the target audience and establishing the business goals to be reached as a consequence of your work in e-commerce and the services you provide, you may determine the best platform for your business and your audience.
Third: Email Marketing
Through email marketing, you may establish a solid bond and trust between your customers and your brand.
When a consumer sees an e-mail message from your store, he feels like a special customer and friend with whom you can converse and tell him about the most significant and recent news about your store, whether it's the message's content, new product offerings, or discounts and promotions.
All of these factors increase his sense of brand loyalty and encourage him to buy, interact with the message, and complete the purchase order.
According to Hubspot's blog, more than 60% of clients who are reached by email connect with the company and make purchases.
Content marketing is the fourth step.
Material marketing is one of the most significant marketing methods, with graphic content gaining the greatest traction recently. According to the figures,
More than half of Internet users would rather watch a video presenting the benefits of online shop products than read textual information that represents them.
Video and image posts are preferred by more than 80% of social media users.
These ratios demonstrate the importance of visual material in e-marketing over textual content, particularly when using social media platforms to advertise products or while describing things in an online store. You should not undervalue the value of this form of material if it can grab and hold your clients' attention.
However, this does not negate the necessity of textual content and the availability of a blog for an online store, since both aid in the speed with which your store appears on the first pages of search engine results.
Conclusion
We've reached the conclusion of today's post, which covered what e-commerce is and how to trade online and build a lucrative e-commerce using the ExpandCart platform. It is also evident that, despite the ease with which it may be entered and the potential for enormous rewards, it is required to follow certain rules and foundations in order to get the desired results.
This is what we wanted to talk about in the first few paragraphs of the article. We highlighted the most critical basic steps that allow anyone to start their own business online by opening a free online store with the ExpandCart platform after discussing how e-commerce began, its concept in depth, and its most important advantages.
Tell us what you don't have and what you'll need to get started in e-commerce!
Also, feel free to post your questions in the comments section, and we will respond to all of them.
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