In recent years we’ve all noticed quite the shift away from brick-and-mortar stores towards eCommerce. But what exactly is it, what’s an eCommerce platform and why is it important to move with the shift? In this blog article we’ll answer those questions.
What is eCommerce?
eCommerce is a shortened version of “electronic commerce” and it makes reference to the buying and selling of a wide range of products and services online. These can be:
- Retail Sales: Retail businesses selling their products directly to their consumers through online stores.
- Wholesale: Wholesalers selling goods in bulk to retailers and other businesses.
- Subscription Services: Businesses selling recurring products or services for a fee.
- Digital Products: Businesses selling digital / downloadable products online, like; software, applications, memberships, online courses etc.
- Marketplaces: These are online platforms where multiple vendors / sellers, such a Amazon, Takealot and eBay, can sell their products.
eCommerce has completely transformed the way that consumers shop and the way that organisations operate. eCommerce gives consumers the ability to compare prices from different vendors and access a wider variety of products than ever before, and most importantly, consumers can now shop from the convenience of their home.
What is an eCommerce Platform?
An eCommerce platform is a software-based solution that gives organization the ability to create and manage their products/services as well as to create and manage their online stores. They’re often built with various tools and features that assist organisations in optimising their online stores as well. These solutions often include:
- Website Building: Providing user-friendly design templates to assist organisations in building their online stores more easily.
- Inventory Management: Providing tools to assist organisations in tracking their stock levels, managing their advertised products and automating the reordering process.
- Shopping Cart Functionality: Providing customers with a virtual “shopping cart” that allows users to order multiple products at a time.
- Analytics and Reporting: Providing various analytics and reporting features that provide insights into sales performance, inventory levels, customer behaviour, marketing effectiveness etc. This information can later be used by organisations for decision making.
Why’s it Important to Move Towards Online Selling
1. Expanded Reach: Selling products / services online lets the organisation reach a much larger audience, breaking down the geographical barriers that exist with traditional retail stores.
2. Availability: Online stores are accessible 24/7, allowing customers to make purchases regardless of the time of day. This means that organisations and their customers are no longer restricted by traditional office hours significantly increasing sales opportunities.
3. Lower Operating Costs: When comparing brick-and-mortar stores to eCommerce stores, eCommerce stores generally incur lower overhead costs as rent, in-store staff and utilities are no longer necessary. These costs can be saved or invested into additional product development or marketing costs.
4. Flexibility and Scalability: Being able to adapt to changes in the market has shown to give organisations a competitive advantage, a benefit more easily achievable with eCommerce. Online businesses can adapt to changes in the market more quickly and they can adapt their offering almost instantly and with little effort.
Whether you have small startup or are a well-established organisation, taking the leap into eCommerce can open up a new world of opportunities for your organisation.
