· E-commerce has surged during the pandemic, enabling businesses to survive and thrive.
· You don’t have to spend much money on overhead when you run an ecommerce app development company compared to a brick-and-mortar store, and it gives you access to a worldwide audience.
· There are some inherent challenges to running an online store, such as the increased risk of fraud and high rates of cart abandonment.
· This article is for people who are interested in launching an e-commerce business and want to learn the basics.
Selling products and services over the internet took on new importance during the COVID-19 pandemic, as business owners and consumers had no choice but to embrace e-commerce. That shift is here to stay, presenting opportunities for small business owners to thrive online. But before you set up your internet shop, you have to understand how it all works.
Editor’s note: Looking for the right tools to help build your business website? Fill out the questionnaire below to have our vendor partners contact you about your needs.
What is e-commerce?
E-commerce is the process of selling goods and services over the internet. Customers come to the website or online marketplace and purchase products using electronic payments. Upon receiving the money, the merchant ships the goods or provides the service.
Electronic commerce has been around since the early 1990s when Amazon just sold books, but today, it’s a multibillion-dollar industry – and it has gotten even bigger during the pandemic. According to Digital Commerce 360’s analysis of U.S. Department of Commerce data, e-commerce spending hit $347.26 billion in the first half of 2020, up 30% year over year. For comparison, e-commerce sales only increased 12.7% during the first six months of 2019.
It’s not surprising. With few other options, consumers got used to buying everything from food to furniture from online stores.
“We’re certainly seeing several studies that show folks are going to keep their new habits,” Tory Brunker, director of product marketing at Adobe, told Business News Daily. “I really think this is our new normal.”
According to research from consulting firm McKinsey & Company, several online shopping categories are projected to grow more than 35%, including over-the-counter medicine, groceries, household supplies and personal-care products.
Did You Know: ecommerce app development company exploded during the COVID-19 pandemic, and the new online shopping habits aren’t going away, which means opportunities abound for small businesses to launch e-commerce websites.
How does e-commerce work?
E-commerce works on the same principles as a physical store. Customers come into your e-commerce store, browse products and make a purchase. The big difference is they don’t have to get off their couch to do so, and your customer base isn’t limited to a specific geographic area or region.
Whether you’re selling running shoes or home supplies, you go through the same process when operating an e-commerce website:
· Accept the order. The customer places an order on your website or e-commerce platform. You’ll be alerted that an order was placed.
· Process the order. Next, the payment is processed, the sale is logged, and the order is marked complete. Payment transactions are usually processed through what is known as a payment gateway; think of it as the online equivalent of your cash register. [Read related article: What Is a Merchant Account?]
· Ship the order. The last step in the e-commerce process is shipment. You have to ensure prompt delivery if you want repeat customers. Thanks to Amazon, consumers are used to getting items within two days.
To show how it works in action, here’s a look at a product’s journey when it is purchased online:
· A customer visits your online shop and browses your products. She settles on a shirt. She chooses the size and color and adds it to the shopping cart.
· An order manager or order management software confirms the product is in stock.
· If the product is available and the customer is ready to check out, she enters her payment card details and shipping information on your payment form or page.
· The payment processor, typically a bank, confirms the customer has enough cash in the bank or enough credit on her card to complete the transaction.
· The customer gets a message on the website that the transaction went through. This all happens in seconds.
· The order is dispatched from the warehouse and shipped. The customer will receive an email that the product is out for delivery.
1 November 2018, the global B2C E-Commerce Market is projected to expand at a healthy CAGR over the forecast period.
The concept of B2C e-commerce evolves around organizations that sell their products and/or services online directly to the end-users.
Increasing number of mobile and internet users in the emerging markets is one of the major factors driving the market growth.
The extended visibility that internet provides gives domestic businesses an edge over the market.
It helps decrease cost related to establishing physical stores and sales platforms across the world.
Electronic shopping and mail-order houses, clothing and accessories, office equipment and supplies, furniture and furnishing products, healthcare and cosmetics, books and music, home appliance, motor vehicle and parts dealers, building materials, garden equipment, and other consumer durables are the major end-use applications of the market.Electronic shopping and mail-order houses segment accounted for the highest share of the market.
Video streaming is one of the most trending concepts in the current time.
Apart from the video quality enhancements, one of the key developments that also forms the foundation of streaming is video streaming protocols.If you are able to view a web series on your device, be thankful for the video stream protocol.
It also decides how data is transmitted between two or more entities of a system.The contents of a communication technologies are:Syntax: It is defined as the structure and format of the data.
Some of the major networking protocols are:HTTP: HyperText Transfer ProtocolFTP: File Transfer ProtocolEmail Protocols: POP3, IMAP, SMTP, etc.TCP: Transmission Control ProtocolUDP: User Datagram ProtocolRTSP vs. RTMPVideo Streaming ProtocolsThe basic definition of a streaming protocol is an entity that is used to deliver data over the internet, no matter the streaming types, audio, or video.On the other hand, a video stream protocol is a standardized method of delivering video content to the users.
Video delivery does not just rely on one type of protocol; there are various aspects in a video that depend on different protocols like:Streaming protocols like RTMP and RTSP help in speedy video delivery.
The HTTP based protocols sit on top of the TCP protocol that helps in maintaining sessions between the communication devices.
An average of 90% of all start-ups fail within the first five years.
One of the biggest mistakes entrepreneurs with a thirst for success can make is thinking about necessity more than desire.People are driven by emotions.
They base the majority of their decisions in life on their feelings.
So even though someone needs a new pair of jeans, they will spend their money on a new video game, or smartphone because they want to.Use this to your advantage and think of a product or service people would actually want to experience on a day to day basis.
Mass ConsumptionIn the global market, there is no room for catering to a selected few; it’s all about mass consumption.
People love transparency and simplicity, so don’t overcomplicate your ideas - make them available to anyone.A Strong Business ModelCharging into the market with just a product but without a growth strategy is kind of like taking a friend’s dog for a walk - it starts great but soon ends up with your face in the dirt.
