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E-commerce – A Next Big Thing or Future of Buying and Selling

November 28, 2018Design , Web

When it comes to e-commerce platforms, the first thing that comes to mind is ‘ease’ The ease at which we can buy and sell things.

E-commerce platforms are not the next big thing, it is already here affecting the daily part of our lives. Causing disruptions in the traditional market but also creating jobs in the logistics sector.

With e-commerce services on the rise, e-commerce marketing has also become an integral part of digital marketing strategy. Marketing for e-commerce platforms is different from marketing for a physical store online.

What is E-commerce?

Basically, e-commerce means buying and selling products via the internet. From mobile shopping to data management to payment gateways, e-commerce services comprise a lot of systems comprising both offline buyers and online sellers.

Most businesses with an e-commerce business model adopt having an e-commerce website. Others with only a few products to sell used platforms like Amazon service to sell their products to their customers.

With e-commerce, even niche markets have witnessed tremendous exposure all over the world. A product listed on one of the e-commerce platforms can be accessed by anyone in the world and hence the possibilities even for a local vendor have increased significantly.

History of E-Commerce

Even though the proliferation of e-commerce services and e-commerce marketing was witnessed in the last 15 years, the genesis of e-commerce platforms dates back to about 40 years ago.

The first e-commerce transaction was made in 1982 with each passing year, the business has only grown significantly.

Since e-commerce services involve a lot of components, different technologies and inventions have made them capable of what it is today. Of Course, the launch of amazon services in 1995 was a big step, here are other small technological inventions which paved the way for the proliferation of e-commerce services.

How Does Ecommerce Business Works?

Basically, even an e-commerce business also works similar to that of traditional retail stores.

The whole concept can be broken down into three steps.

Receiving orders: This is the first step where customers place the order through the e-commerce platform (website or an online portal), and the seller makes a note of it.

Processing order information: The second step is where all the details of the order being processed and completed. It is now ready for delivery. Now with advanced technology and a need for better customer experience, this part is getting more nuanced and sophisticated.

Shipping: The last step wherein the delivery process is carried out. All the logistics components play a significant role in this step to ensure timely delivery to the customer. Amazon services and many other similar platforms are responsible for creating a large number of jobs in the shipping and delivery section.

The Impact of Ecommerce Platforms in the Real World

The reason why e-commerce marketing and services have witnessed such exponential success is because of the changes it is making in the real world. It has a ripple effect on everything from small local vendors to the largest conglomerates.

For many large-scale retail owners, the transition was difficult but in the long run, has helped them reach a wide scale of audience all over the world.

E-commerce platforms have helped the local vendors to come on board and have a niche competition with large brands. The supplier could now directly sell to their customer without the need for middlemen.

Jobs related to e-commerce services are growing exponentially, far outpacing the traditional job creation numbers. The growth of e-commerce is likely to continue even in the future.

E-commerce services have changed the way customers think about shopping. This behavioral shift has caused e-commerce marketers to focus on developing new strategies to sell the product.

Advantages of Ecommerce Platforms

E-commerce service has many advantages, from the fast delivery of products with minimum effort to the ability to reach a wide set of audiences. Without the need for a physical storefront, the operational cost has significantly decreased for many businesses. As sales increase brands can easily scale their operations without having to make any property investments.

With the rise in AI and other technologies, it is possible for an e-commerce platform to provide a personalized experience to individual users. Each user has their own buying preferences. Showcasing relevant products based on their buying behavior can increase the chances of good sales.     

The Future of Ecommerce Business

The current growing trend and the potential market conditions suggest that e-commerce is going to have a brighter future. With companies investing in data analytics and behavioral understanding, we might expect to get a more personalized experience. The personalized experience parameter may also come down in offline retail shopping. There are a lot of people who stick to the old ways of conducting business or marketing. But e-commerce is not just a trend it is a business model that has the capability to scale exponentially in a short period of time.  As time goes by, the e-commerce platforms will get more democratized and we can see more and more local and small businesses getting onboard on these platforms.

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