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05 Sep 22

E-commerce: what it is and how you can benefit from it

E-commerce: what it is and how you can benefit from it

There are numerous advantages to starting an e-commerce business. If you have a business and want to expand it into the digital realm, this is the ideal tool for making your products/services known in various parts of the country or the world.

E-commerce, or electronic commerce, refers to businesses that conduct their buying and selling processes via the Internet. In other words, all commercial transactions are carried out through online tools. Essentially, it involves sales made over the Internet by a single company through its own virtual platform.

The concept of e-commerce is more encompassing than just creating a website. It involves an investment that stands out due to its digital-focused operational structure.

It’s worth noting that e-commerce digitises what is done in a physical store, encompassing two processes: sales and customer service. It also covers other aspects such as marketing, finance, and inventory control.

The online store is a significant part of e-commerce but cannot be considered its entirety or definition. The concept of an online store is understood as a single sales channel of e-commerce, with social media, email marketing, and other digital marketing methods serving as means to drive users to the online store.

There is sometimes confusion between e-commerce and a marketplace. A marketplace provides a common platform for various users and businesses to sell their products. This platform often involves intermediation in the payment process and may even require a fee for guaranteeing the delivery and quality of a product in some cases.

For smaller stores, a marketplace can be an attractive alternative. It offers a predefined structure that is easy to manage, requiring only the creation of an account and the listing of products to start.

Always remember the goal you want to achieve when creating an online store. Investing in your own platform is a good business option, provided that its structure is prepared for management and operation. In essence, even though it is a non-physical business with lower costs than a physical store, all the principles of marketing and management should be applied in e-commerce to achieve success and desired results.

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