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Introduction 

Are you also curious about e-commerce..? Here is everything you need to know about how to start an e-commerce business.

E-commerce stands for electronic commerce which means buying & selling services digitally, It's like having a virtual shop at your fingertips. This digital revolution has not only changed how we shop but has also changed the work process of business and market trends. 

Here we will discuss everything you need to know before starting an e-commerce business.:- 

• Benefits of e-commerce business 

• Challenges in e-commerce business 

• Statistics of growth of e-commerce business

• Types of Businesses

• How to select a perfect platform to start your e-commerce business

In the modern world, e-commerce highly impacts the growth and success of a business enterprise. Let’s see how e-commerce business is different from traditional business.

E-commerce has created a huge change in the method of shopping by providing the facility of online purchases, it's easier and faster than traditional(in-store) purchase-sale transactions. Businesses can now operate digitally through Internet connections. Mordeb technology makes the whole globe as small as a village where everyone can connect easily with the help of modern technology selling to a global market with unprecedented flexibility in pricing, advertising, and customer interactions. This transformation has made shopping more convenient and easy by allowing consumers to shop anytime from anywhere. It removes the limitation of place and time for both sellers and buyers.

Here are some strong reasons or benefits of starting an e-commerce business 

1. Global reach & scalability:- Starting an e-commerce business offers a global reach, it removes the limitation of distance. You can sell to customers all around the world, expanding your market and increasing sales will become easy. E-commerce is scalable and cost-effective, allowing easy growth and the ability to target new customers with low investment. This feature allows you to offer a wide range of products to a global audience.

2.  Data-driven Insights:- E-commerce platforms provide valuable data and analytics to help you better understand your customers. You can have an eye on customer’s behavior, preferences, and trends, with the help of this data you can make appropriate decisions for your products, marketing strategies, and overall business direction.

3. Low starting cost:- Compared to traditional businesses, starting an e-commerce business is more affordable and requires less amount of resources. You don't need to worry about high rents or other costs associated with physical stores.

4. 24/7 Availability:- With an e-commerce business, your store is open 24 hours a day, 7 days a week. This means that customers can shop anytime, even outside regular business hours. This flexibility serves your customers more convenience in shopping.

Challenges in starting an e-commerce business

1. High competition:- E-commerce is competitive, so finding a unique selling point or offering the best customer service is necessary to stand out. Creating an attractive and user-friendly website can also help attract customers. 

2. Building Trust:- In online shopping, customers have a lack of trust since they can't see or touch the products. Building brand awareness is very important for gaining trust, while in physical stores trust can be gained easily due to live interaction and physical presence.

3. Logistics and Shipping:- Delivering products involves storing, packing, and shipping them carefully. Prioritizing timely and safe delivery is key to customer satisfaction. Managing returns is also challenging but requires a proper system

4. Customer Acquisition:- Acquiring new customers in e-commerce is the main problem for e-commerce business owners due to high competition, lack of trust, and the need for an attractive website it becomes more difficult. It's like standing out in a busy marketplace, but it can be possible with the proper management system.

5. Returns and Refunds:- Money is crucial in e-commerce, especially due to order cancellations or returns, in most cases, owner has to bear the expense. Having a clear and easy return process is essential for keeping customers satisfied and loyal

Here is some statistical data on the growth of e-commerce 

Year     Global e-commerce sales

2021     $4.98 trillion

2022     $5.29 trillion

2023     $5.82 trillion

2024     $6.33 trillion

2025     $6.86 trillion

2026     $7.41 trillion

2027     $7.96 trillion

Global e-commerce sales are expected to total $6.33 trillion worldwide in 2024. This number is expected to continue growing over the next few years, proving that the e-commerce business model is becoming an increasingly lucrative option for companies.

Online sales are expected to continue rising and take a larger piece of the retail pie. In 2025, global e-commerce sales are forecast to rise to $6.86 trillion, before adding another $550 billion in 2026, to $7.41 trillion. By 2027, it’s estimated that world retail e-commerce sales will hit $7.96 trillion.

From 2021 to 2027, annual global e-commerce sales are projected to increase by nearly $3 billion. This marks an overall increase of 59.8% and an average annual growth rate of 8.1%

Source:- Shopify

Types of e-commerce business

Broadly there are 4 types of businesses 

• Business-to-Consumer (B2C)- this is the most common type of business type where businesses sell goods or services directly to consumers. 

• Business-to-Business (B2B)- here the business sells its goods or services to another business. 

• Consumer-to-Business (C2B)- here consumers become sellers they are not any business owners but sell something to any business. The best example of this is a metal scrap yard.   

• Consumer-to-Consumer (C2C)- consumer sells their product to other consumers. The best example of this is OLX where consumers can buy and sell old products to other consumers. 

We can also categorize businesses into:-

• Pipeline business model 

• Platform business model 

Pipeline Business model:-

It is the traditional method or commonly used business model, here products or services pass through various stages, the same as water passes through a pipeline. Every stage adds some value to the product or service.

Let’s understand it with an example of cotton cloth:-

  S1- here the business owner will go to the farmer and purchase raw cotton from him

  S2- here cotton will turn into a cloth piece

  S3- here that cloth piece will get colored and cut into various sizes 

  S4- here clothes get stitched and designed 

  S5- here finally cloth will be ready to use and the business owner will sell it in the market,                 

        still it requires marketing, a place to sell, involvement of manpower, etc

As you can see this includes a lot of hard work, and a high level of involvement in business operations, and the requirement for capital is very high, but technology also brings changes in the lifestyle of people and unlocks new opportunities like platform business model or e-commerce business model where you get flexibility and convenience. Let’s understand the platform business model

Platform Business Modle 

Here one will not do all the processes or be involved in the procedure of manufacturing or business operation, but it offers a platform for businesses 

Amazon is the best example of this type of business model, we can find tons of different products on Amazon but does Amazon really have involvement in all those products? 

No, amazon just offers an e-commerce platform that facilitates business owners to sell their goods and earn on every transaction. 

Here are some benefits of owning this type of e-commerce platform

• High scalability 

• Flexibility 

• Minimal requirement of investment 

• A large number of audience 

• Global reach 

Do you also want to have an e-commerce platform that has the potential for high scalability and other benefits?  

But the main question is…… 

Which is the best E-commerce platform..?

Every business owner or every person who wants to start an E-commerce has the same question which is the best platform to start an e-commerce business? 

Every business owner or founder has their mindset and strategies, therefore it is difficult to find a perfect platform that fulfills every need of every person. 

 

An ideal e-commerce platform should be rewarding for all business owners, sellers, and customers

Some features that make the platform easy for customers to use and find what they're looking for. (customer app)

• Photos and videos of the product

• Sell detail and product description 

• Categories and sub-categories of product

• Product search option 

• Multiple payment options

Some features that help sellers grow faster ( seller panel )  

• Multiple payment facility 

• Invoice  (bill) generator

• Order tracking system

• Sales statistics (daily, weekly, & monthly) 

•  Wallet management

• Product management 

Features to manage your platform ( Admin panel )

• Manage  Multiple sellers

• Product management & brand management

• Revenue management 

• Customer & seller data management

• Promo code & offer management 

These are some mandatory features that make an E-commerce platform a perfect E-commerce platform that helps to grow you 3 times faster 

Now the question arises.

• How can you have this kind of fully feature-loaded platform? 

• How much time and money does it cost to have a full e-commerce business management system? 

Here WRTeam comes up with a solution for you, you can also have a full e-commerce business management system that includes an App and website. 

• Customer app ( android & IOS ) 

• Seller app ( android & IOS ) 

• Delivery app ( android & IOS )

• Admin panel 

• Seller panel 

• Delivery app panel

You can have codes for all of the above and make a customizable e-commerce business management system with a minimum investment of time and money 

Click the button below to explore an ideal E-commerce business management software:- eShop