What e-commerce involves – Electronic commerce is the business model based on the transactions of products and services in electronic media, either on social networks or websites.
E-commerce is growing by leaps and bounds in different corners of the world, and Latin America is a perfect example of this.
At the end of 2019, the expansion of sales through digital channels could increase by 15.7% in the region, compared to 2018 figures, according to statistics from the World Electronic Commerce Index, cited by América RetBottomBottom of Form.
What is electronic commerce?
Electronic commerce, also known as e-commerce, has its main characteristic the economic activity that allows purchasing and selling products and services from digital media, such as web pages, mobile applications and social networks.
Through the Internet, customers can access various brands, products and services at any time, anywhere.
The relevance of this trade type is that businesses take it as part of their sales strategy thanks to its efficiency.
The establishments already have web pages and create profiles on social networks to reach a broader range of audiences.
Selling and buying is already a simple task facilitated by technology, such as mobile devices with Internet access.
What are the characteristics of electronic commerce?
Although, like traditional commerce, its ultimate goal is to generate sales, electronic marketing is undoubtedly very different.
Many characteristics differentiate e-commerce from what decades ago we knew as commerce, and these are some of them:
Years ago, for a company to generate sales on another continent, it had to be a colossal organization with different branches, collaborators and a tremendous logistical capacity.
Instead, e-commerce brings global reach to anyone who wants to dabble in it. And it is that consumers from any country can enter your virtual store or account on social networks.
You simply have to develop the right strategies to connect with them.
Speaking of countries, Mexico and Colombia have been one of the main ones in Latin America in terms of the growth of virtual stores.
Do you know what this term means? It refers to that which can be present everywhere at the same time.
Yes, just like e-commerce does. If desired, a virtual store can serve the public 24 hours a day, regardless of where the user is.
Another characteristic of electronic commerce is that it encourages constant feedback between consumers and brands.
Users can ask questions, comment on products, and even file complaints within seconds.
Meanwhile, stores concerned with customer service can respond to any interaction immediately.
What is electronic commerce for?
At this point, we will focus on the usefulness of this marketing method for companies and entrepreneurs. Specifically, we will talk to you about 3 things that e-commerce is good for.
1. Increase in sales opportunities
Logically, a traditionally operated business will significantly increase its sales opportunities if it also decides to take advantage of electronic channels.
On the other hand, brands exclusively dedicated to this form of commerce also have more significant opportunities since they have access to a global community of millions of users.
2. Launch of innovative products
In the traditional market, launching innovative products requires a substantial investment in advertising and an extensive logistics structure to take it to the right points of sale or suppliers, as well as the productivity of a sales team.
That is why many medium and small entrepreneurs use electronic commerce to offer new services or items, allowing users to know their specifications and even intact who has shallow brand recognition them.
3. Brand recognition
You undoubtedly need electronic commerce if your business has years of experience but very low brand recognition.
Marketing in the large community of the Internet and social networks helps a brand go from being “invisible” to being known by many users and market players.
What is the history of e-commerce?
To talk about the history of electronic commerce, we do not have to go back to distant times. Like many of us, this marketing method is from the romantic era.
The commencement of e-commerce is related to the inauguration of the Internet for commercial use in the groundbreaking year of 1991.
However, it was not until 1994 that the first company with a significant commitment directed specifically to electronic channels was born: Cadabra.
You don’t know her, do you? And unsuccessful ventures in history.
No, it is not that you have lived in a fizz in recent years. In 1995 Cadabra changed his name to Amazon (now you know pardon we’re talking about).
Amazon ongoing as an online bookstore that later long-drawn-out to all kinds of products, becoming a role model for many other entrepreneurs.
What are the benefits of electronic commerce?
If you’ve paid attention this far, you already know some of the rewards of e-commerce, such as its global reach, ubiquity, and exposure.
However, there are many more specific rewards of this marketing method; below, we will explain 3 of them.
1. Flexibility and simplification
To have a successful virtual stock, you will not need hundreds of employees as long as you have good architecture and technological support.
In addition, there are solutions such as Dropshipping, which significantly simplify the online sales process. In the case of this model, it allows electronic businesses to operate without having stock since it provides a direct link with the supplier.
2. Access to information
Later we will talk about Digital Marketing and Inbound Marketing, but we anticipate that developing this type of strategy is much easier when it is marketed electronically.
This is because the dynamics of e-commerce provide access to valuable information on customer identification, consumption patterns, and market preferences.
In addition, it is straightforward to follow the different metrics and KPIs of e-commerce, including the conversion rate.
3. Lower investment
In recent years, e-commerce has not only become a source of profitability for big brands. It has also established itself as an excellent alternative for small and medium-sized entrepreneurs.
This is because it demands much lower investments than traditional trade.
Among other things, it saves costs on employee payroll, high-volume inventories, and expenses associated with maintaining and renting physical stores.
W and types of e-commerce and type of e-commerce, it is essential to work on sales strategies and campaigns considering the different purchase funnel, also, also target audiences the also, involves each.
Discover below, I, involves-commerce and their characteristics!
Business to Consumer – B2C
The Business to Consumer (B2C) model is also known as retail e-commerce and involves a direct business relationship between the seller and the final consumer.
The sales process is practically 100% digital, except for delivery logistics in the case of physical products.
In other words, one of the main elements of this relationship is that the purchase process is straightforward, and B2C e-commerces must opt for an intuitive and easy user experience.
According to Statista, this is one of the totals of $6.3 trillion by 2024.
Direct to Consumer – D2C
The manufacturer sells directly to the final. That would be the definition of the type of D2C electronic commerce.co That would be the short definition of the type of D2C electronic commerce. Number. That would be the brief definition of the type of D2C electronic commerce. Its great advantage for the company and the final consumer, is that sales intermediaries are eliminated.
Thus, the relationship is made directly between the manufacturer and the customer, reducing sales costs.
However, there is a need for investment in a process that is not part of the core business since factories do not usually specialize in marketing and everything related to denying the final consumer. That is, it is necessary to evaluate the pros and cons of this e-commerce model before implementing it in the business.
Business to Business – B2B
In B2B e-commerce, the sale is made between two legal persons; that is, one company sells to another.
To create sales strategies for this channel, it is necessary to consider that corporate purchases tend to be negotiated in higher volume, so their buyers are always looking for better prices.
In addition, sales in the B2B model have a high chance of recurrenceustomer loyalty campaigns can bring actual business results.
Business to Employee – B2E
B2E e-commerce f A Additionallyllyn exclusive or unique sales for company employees. When a company’s employees consume its products, they can sell and talk about their usage experiences with greater ownership.
In addition, when the offers have special conditions and prices, said sales channel can be considered a benefit.
This same prototype can also be used to manage internal purchases with different cost centres in large companies. Thus, it is possible to hire hours of service from a particular sector or buy spare parts from the stock of another branch, facilitating internal exchange processes.
Consumer to Business – C2B
The type of electronic commerce called Consumer to Business (C2B) mainly comprises the negotiation of services provided by the consumer to a brand.
For example, promoting a new product on your social networks can be a bargaining chip in which the consumer receives a reward for the action taken.
Consumer to Consumer – C2C
C2C e-commerce focuses on commercial relationships between two end consumers. Sites like eBay and Mercado Libre allow users to exchange products with others. In this case, the platform is remunerated with a commission for the sale.
To increase your eCommerce profits, you need to attract a large number of dealmakers, as well as engage them to close sales. Creating actions on social networks, offering discount coupons and registering for free are some forms of incentive that can contribute to success.
Consumer to Administration – C2A
Another little-known type of electronic commerce is C2A or Consumer to Public Administration.
This relationship can be managed through the Internet on a web page where the public administration informs its demands, and the interested parties make their services available or accept proposals.
Business to Administration – B2A
Similar to C2A, the Business to Administration e-commerce will host the negotiations between companies and the public administration, being able to manage negotiations following bidding models, for example.
Mobile commerce – M-Commerce
In the case of M-commerce, sales must necessarily be made on mobile devices such as smartphones and tablets.
What differs from e-commerce is that this business modeFoForevices.
Social Commerce: S-Comme on Facebook and Instagram
S-commerce is more common on Facebook and Instagram. This is the type of e-commerce that is made possible on social media.
For example, you can create stores and sell products and services on Facebook and Instagram.
Facebook commerce – F-Commerce
F-commerce is the description or name given to the sales solution offered by Facebook. As in the case of S-commerce, this sales model must focus its efforts on promoting relevant content for the sale of items in the virtual store of the social network supported by the target audience, tutorialsition to product images, iMarketing to work on issues that involve consumption, style and good use practices.
If the target audience is supported, tutorials, memes, and other formats can also increase engagement.
Chat commerce – C-Commerce
C-commerce is a model where a significant differential is a collaborative commerce. Different users connect to contract, buy or sell products and services.
TV Commerce: T-Commerce
Digital television can also be a great sales channel and is the focus of T-commerce, which uses specific programs on products or services.
Not all producsucceed sell in this e-commerce format, so prior research on the habits and behaviours of the campaign’s target audience is necessary to assess whether the channel will succeed in sales.
Subscription commerce sells service subscriptions and has different models or value propositions.
The first is when the customer subscribes to an extended package to benefit from the discount, that is, a lower price than if they were to buy individually.
There is also subscription trading that focuses on “curation”. In this case, a specialist makes a unique selection of products available to subscribers.
And finally, it is also possible to work with the membership model, in which only subscribers can access products and differentials.
Each subscription commerce model will work best with one audience and one service. Therefore, to develop a sales strategy, it is necessary to study which would be the most receptive and significant model for leads.
This type of e-commerce focuses on offering info products. But, to increase your conversion, it may be interesting to work on email marketing strategies, newsletters or even create a blog to generate related content that educates potential buyers and directs them to conversion.
E-commerce that works with dropshipping will also operate similarly to info products.
That is, it will be a channel for the conversion of the sale, but the other steps of the purchase will be carried out in another direction, with other people responsible for shipping the product, for example.