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E-Commerce Explained for Beginners – An Ultimate Guide 2022

by Mr. Geek Tips
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Perhaps you’ve seen many success stories of many online stores around you, and you’ve started wondering, “What is e-commerce?”
Is it different from traditional commerce?
Is the only difference between the two businesses the creation of a website?
Is it possible for anyone to start an e-commerce business?
And there are several more questions that I discuss in-depth in this article.

What is E-commerce?

When we say “e-commerce,” we’re talking about the buying and selling through the internet, as well as the money and data transfer that goes along with it. Often, the term “e-commerce” is used to describe the online sale of physical goods, but it can also refer to any type of commercial purchase done possible via the internet.

E-commerce vs Traditional Commerce: the differences

E-commerce and traditional commerce both offer the same goods and services, but the payment and delivery methods are different.

E-commerce relies entirely on digital platforms to complete transactions (beginning with browsing the products, selecting the required product until completing the payment and delivering the product). To minimize the need for direct contact between the seller and buyer, all aspects of the transaction are performed out through the internet.

In traditional commerce, you’ll meet the seller face-to-face and start looking around before making a decision on what product to buy and how much you’re willing to pay for it. This is a common way to go about it.

The importance of online shopping

As a matter of fact, I can tell you that e-commerce is currently the future of business.

Let me give you a few examples of how important e-commerce is in today’s world, and how important it is to include digital in all commercial activities.

The volume of online purchases

Amazon, the world’s most famous online marketplace, had sales of $75.5 billion in the first quarter of 2020, making Jeff Bezos, the company’s founder, and the world’s richest person in 2019. Statista estimates that the global e-commerce market is worth $3.53 trillion.

Realize how many online stores have popped up around the world (amazon, aliexpress, eBay…) and how much money your friends are spending, and you’ll see the truth of these statistics.

The state of e-commerce in crisis

Customers’ need to complete their purchases without ever having to leave their homes drove millions to purchase online during the most recent crisis (the Corona epidemic). Online stores helped these customers in completing their purchases while they were quarantined at home. This event was a boon for online sellers.

In the event of a crisis that prevents people from leaving their houses, it is expected that online stores would be the best option for them to buy stuff.

E-commerce is important since it helps people in times of need, so imagine what would happen if there were no online stores to buy from? The purchasing process will be extremely difficult for customers.

As a result, whether in times of crisis or not, e-commerce makes people’s everyday lives easier and saves them time.

The Future of E-commerce

Since its inception in the 1990s, e-commerce has been rising rapidly and increasing year after year as a result of the many benefits that e-commerce has over traditional commerce.

The following are some estimates based on experts and statistics from the United States about the future of e-commerce and its predicted developments:

  • e-commerce sales are predicted to rise by 4.5% to $29 billion by 2023.
  • Sales quotas for third-party product stores should be increased (Private label).
  • Over half (53,9%) of all purchases were made using a mobile device.
  • Increasing automation (dependence on automated systems) in online stores in order to expand to a bigger customer base.
  • Faster product delivery and lower shipping costs are top priorities for online stores.
  • Purchases can be made with voice recognition technology (Amazon Alexa). 

E-commerce Types

We also stated that e-commerce includes all features of digital buy and sell, but until you have more extensive knowledge of the relevant type of online businesses available, we recommend starting small.

Note: Customers are referred to as C and B stand for business.

Business to Customer (B2C)

It is the most common sort of e-commerce, in which a buyer is a regular person (such as selling food and products to customers in general). In the marketplace, this includes all products directed at the general public.

Business to Business (B2B)

The company’s management is appearing as a consumer in order to sell the product to a third party. For example, selling accounting software, the product is aimed at the company’s account manager, sales manager, or CEO rather than the general public.

Customer to Customer (C2C)

In this situation, the seller and the buyer are both regular people (not businesses or manufacturers) who have reached an agreement over the usage of online marketplaces as a way of exchanging the sale of products. Similar to the process of reselling used household items on eBay.com

Customer to Business (C2B)

In the final case, the seller is an ordinary individual and the buyer is a business entity. This includes companies that offer to buy products or services from customers. For example, a photographer who sells his photographs to companies for the right to use them commercially is like this.

Selling can take many forms, from selling a physical product or a digital product directly between the seller and the buyer to selling a digital service or a physical service for an agreed price or in exchange for a monthly or prepaid subscription through a third party or a mediator.

how do I get started with E-commerce?

The formula for a successful online store is simple: acquiring products, creating an online store, and implementing marketing campaigns.

Let’s take a closer look at the elements of an online store, starting with this simple equation:

Deciding on a Market Niche

What type of store will you open? Will it sell clothing, electronics, or something else? Niche stores are better positioned to compete with big stores because of the unique products and services they provide.

The choice of products

Determine which products are most valuable to users, whether you produce them yourself or import them from third-party sellers. You must ensure that each product in your store is a top-notch product.

This does not mean that the product has to be full of fiction, but rather that the product must be of the highest quality before it is presented to the public, and that it is truly unique when compared to its competitors.

Shipping and Warehousing.

Once the products have been imported and received in your warehouses, you must set up a complete shipping system to get them to the customer’s house as quickly as possible from your warehouses.

Build an online store

In order to get your store up and running quickly and affordably, I recommend using Woocommerce or Shopify (beginners friendly) instead of one of the many other options available.

  • Purchase a domain name: A domain name is the website address that represents your site.
  • Get Hosting: This is a service that allows you to host your website files and make them available to visitors.
  • WordPress setup: WordPress is an open-source content management system that you may use to create and customize your website or online store.
  • Installing WooCommerce: This is the most popular add-on for adding products and managing sales in your online store.
  • Installing an attractive template: This refers to the appearance which you will use to build your online store from store pages, product pages, and so on.
  • Creating store settings includes adding products and changing technical aspects so that your store appears in an engaging way that improves the user experience.

Start Marketing Campaigns

It is still necessary to establish marketing campaigns on various platforms to ensure that your ads reach your potential customers and that they make a purchase from your store if you have completed all of the above steps properly.

There are various ways to advertise your business, however, I’ll give you a few examples:

  • Pay Per Click Advertising (PPC).
  • Search Engine Marketing (SEM).
  • Social media marketing.
  • Advertising through video.
  • Content Marketing.
  • Using influencers to market your product.
  • Use Email Marketing.

Your role continues to gain customers’ trust and give an effective and an unique experience in online purchase until they return to buy from you again and encourage their friends to buy from you, using these ways and others.

On your first day of starting your online store it is expected that you may fail in certain areas, but if you take into account these things as much as possible, they will effect the success of your online store immediately.

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