What Ecommerce Means For Online Retailers
If you’re interested in establishing a consumer-to-consumer business, you might be wondering what eCommerce means. Ecommerce allows you to scale your business on the fly, decrease your reliance on store sales, and track shipments. However, eCommerce does have its drawbacks. Read on to discover the benefits of eCommerce. In this article, we’ll discuss the most common pitfalls that eCommerce businesses face, and how to avoid them.
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eCommerce is a consumer-to-consumer business model
The consumer-to-consumer (C2C) business model refers to the sale of products and services online. These transactions are often facilitated through third-party sites that charge a fee for bringing the parties together. Popular examples of C2C sites are eBay, Amazon Marketplace, and Etsy. Ecommerce has been growing in popularity in recent years, but its benefits do not end there.
The concept of business-to-consumer eCommerce originated in 1994 when an individual in New York sold a Sting CD on the NetMarket. Global retail eCommerce is projected to reach $27 trillion by 2020. Today, this business model includes eCommerce retailers, wholesalers, and subscription boxes. But how does this model work? How can you ensure a successful business? Here are a few tips to consider.
It allows you to scale on the fly
A major advantage of eCommerce is its ability to scale on the fly. While a brick-and-mortar store has its physical limits, eCommerce does not. The ability to add and remove products as needed is unlimited. Moreover, it allows for real-time tracking of sales and shipments, making it easier to spot snags in time and keep the business running smoothly. Here are three reasons why eCommerce can help you scale on the fly.
Having a solid base of data is vital for scaling an eCommerce business. Without solid data, there is no way to know when to scale. Therefore, it’s important to monitor KPIs to make sure your business is growing and scaling according to your goals. By analyzing data, you can determine which sales channels and marketing tactics work best. In addition, you can also create a growth strategy by identifying what will work best for your brand and how to maximize that potential.
It reduces dependence on in-store sales
For many retailers, the success of e-commerce is a matter of reducing their reliance on in-store sales. For example, the e-commerce sales of baby diapers and household chemicals were nearly six times as large as those of Black Friday and Cyber Monday combined. By 2050, e-commerce will likely surpass in-store sales by nearly two-and-a-half times. Adapting quickly to demand shifts will help retailers increase their market share and conversion rates.
Total retail sales in April were down sharply, with a decline of 29.1% compared to February and a decrease of 26.4% compared to April 2019. However, e-commerce sales increased by 63.8% in the month, and the in-store sales of apparel and clothing accessories fell by -15.8% and -16.2%, respectively. Despite these numbers, some retailers are now focusing more on e-commerce to increase sales.
It allows you to track sales and shipments
Tracking is one of the best ways to understand what customers are looking for. Ecommerce makes it possible to monitor the process from the moment they start to the moment the order leaves your warehouse. It can reveal a variety of issues, such as product availability, if a product is out of stock, or if the item was sold out before the order was placed. Tracking also allows you to see which products are the most popular, which helps you increase your profit potential exponentially. Ecommerce can give you a leg up on the competition, allowing you to anticipate market trends and meet customer demands instantly. You can also track total revenue growth and customer retention rates over time, which can be a great help in identifying snafus.
Shippo is an online tool that connects eCommerce sellers with USPS and carrier services. The platform tracks shipments send notifications to customers and generate free return labels. Customers can view their tracking information at any time, which is invaluable in analyzing your business. You can also see the status of all shipments, including those that are returning to your warehouse. In addition to tracking sales, Shippo offers a customer support tool that answers questions, offers eCommerce support, and integrates with many popular eCommerce platforms.