How happy are you when you wish list an item on Amazon, and then, place your order by adding it to your cart?

Or,

When you finally see that item which went out of stock is again available for you?

The world of e-commerce has experienced a humongous boost in the last decade.

So much so that within the first quarter of 2018, a 9% increase in e-commerce sales was seen. A recent report conducted on e-retail outlets in the United States showed that the e-commerce industry there stands at a net worth of $123.7 billion. The total sales worth for 2018 stood at a whopping $1.3 trillion.

Basics of e-commerce – Essentials to know

Generally, people think that B2C transactions are the basis for e-commerce. The most popular B2C transaction is purchasing and selling of goods on the web.

Today, almost every business has a digital storefront that is equal to its retail outlets. Some businesses even do not have a physical store location! Buyers browse and buy products from them with the help of a few clicks.

At the very core, e-commerce means the purchase and sale of goods or services through electronic channels. E-commerce got introduced in the year 1960 via the EDI or the Electronic Data Interchange on VANs (value-added networks). This medium started to grow with the increased accessibility of the internet. Moreover, the emergence of online sellers during the 1990s and early 2000s also probed the growth of e-commerce.

Amazon is not the pioneer of virtual shopping, yet it stands as the most favoured online shopping destination for millennials. It began its operations first as a book shipping business in 1995 back at Jeff Bezo’s garage. eBay is a leading e-commerce platform which helps customers to sell products to each other and has familiarized online auctions in the year 1995. It soon expanded with 1997 Beanie Babies Frenzy.

The arena of e-commerce like another digital technology has evolved with time ever since its inception. As mobile device started to become a household name, mobile commerce integrated with it. Additionally, when in 2014, Facebook, the social media giant, actually drove about 85% of sales on e-commerce platforms like Shopify; the boom in this world received a robust boost.

At present, the changing market portrays a huge opportunity for business organisations. They can enhance their market relevance in the virtual world.

Experts predict that this world of e-commerce shall be about 17% of the United States retail sales by the year 2022. It is said that the U.S. shall spend a grand amount of $460 billion online in the coming years. The numbers will continue to grow as more and more mobile apps get integrated into our daily lives.

Here are some fundamental concepts regarding e-commerce 

Personalization:

E-commerce platforms make it a point to offer customised products to their customers. Personalization is a process that tracks what the website visitors are looking at. This helps them get a clear understanding of the customer’s choices.

Once the marketer knows his preferences, he can use cookies to provide every customer with a personalised experience designed particularly for the later. One way of doing so is by curating a customised website content that lets a marketer build an interactive relationship with his website’s repeat visitors. Customers are sent the right message at the right time.

Product Recommendations:

These have the potential to show customers that the e-commerce marketer pays attention to their individual needs and wants. It lets them gain a bigger picture of the platform’s inventory. A marketer can also highlight user recommendations where the items can be put on wish list. The ‘word of mouth’ is a viable part of product recommendations.

What are the types of e-commerce?

1. Business to Business

This e-commerce type encompasses every electronic transaction of merchandise conducted between businesses. Here, companies sell their products online to other business houses. These organisations are, however, not engaged in sales with the public consumers.

2. Business to Consumer

In this kind of e-commerce business, the companies sell their products and services to consumers, the end users. The B2C e-commerce shops come with open access for every visitor and user.

3. Consumer to Consumer

The C2C or consumer to consumer type of e-commerce business model includes all electronic transactions of goods/services that are conducted between consumers. These transactions usually take place through third parties such as the online platform where the dealings get carried out. For example, eBay is the most popular platform that lets consumers sell to others.

4. Consumers to Business

In this C2B model, there lies a complete reversal of the conventional sense of goods exchange. The consumers offer their products online, and the companies post their bids. The consumers check these bids and select the companies which meet their desired price range. One ecommerce sector that has become quite common in this aspect is the market which sells royalty-free images and design elements.

5. Business to Administration

Here, e-commerce includes all online transactions between a company and a public administration. This involves a large amount and a general variety of services, especially in areas like fiscal, employment, legal documents and registers. These services are increasing day by day in recent years owing to the investments made by e-government.

6. Consumer to administration

This C2A e-commerce model comprises electronic transactions that are made within public administration and individuals. A few examples of these business models are education, social security and taxes.

The e-commerce model types are currently thriving. Sales from the online stores are rising and shall grow by 78% by the year 2020.

Reasons why e-commerce is on the rise – Read to know!

The rapid adaptation of mobile devices and access to the internet have offered emerging market customers to become an integral part of online activities such as retail, gaming, sports, etc.

Today, online retail has transpired as e-commerce and market reports state that online spending of USD 1.29 trillion across world economies will increase to USD 2.7 trillion in the coming years.

Here are the reasons for which this sector is booming so much

1. Urbanization is coinciding with a high propensity for online shopping. Urbanization will continue to rise across the emerging markets, and it shall coincide with the growing numbers of online customers. The population density finds the e-commerce logistical function to be highly favourable for them.
2. FMCG and food deliveries support the growth of e-commerce. Online shopping has become more price elastic, and consumer products like books, apparel and electronics dominate the e-commerce landscape. FMCG industries are contributing at large.
3. Improved delivery logistics, constant retail presence, and buying ease make the e-commerce platforms favourite of the consumers. Saving time is the biggest highlight of these businesses.
4. Cross-border e-commerce works as an additional driver of increased sales. Greater connectivity level has allowed consumers to become familiar with products and services which are not available locally. As per the 2017 Nielson report, the share of Chinese consumers has doubled to 64% since the year 2014.
5. Another reason for the rise of e-commerce platforms is the adoption of mobile payments in the emerging market places. Owing to the growth of internet access and smartphones, the digital non-cash payment system has become possible across the world. A country’s e-commerce activity correlates with the customers’ willingness to make non-cash payments. For example, India is soon going to follow China where the share of cash in the retail transaction fell from 61% to 38% in the year 2016.

The growth in the sector of e-commerce across the world is unstoppable. Technical advancements are the primary causes of its rise.

Primary growth drivers include 

• Technology consumerism that has internet usage and smartphone ownership.
• E-commerce exclusives such as price advantage, convenience and diverse assortment of product lines.
• Technological advances like closer tie-ins with real world and increasing maturity of e-commerce platforms.

Customer journeys are now merging online and in-store. The notion of e-commerce being a distinctive store is disappearing.

Some of the popular trends in e-commerce that are emerging 

1. AI Chatbots and Assistants

In 2019, it is said the AI shall invade the e-commerce space even more. Chatbots and AI have been designed to make a customer’s shopping experience enhanced overall. AI assistants are able to handle a variety of tasks that have been assigned to human-like handling inquiries and inventory management. Such digital assistants shall carry out several procedures, thus, freeing up time for one to focus on other aspects of running a business. Chatbots on e-commerce platforms fulfil a lot of customer services, starting from answering their queries to discussing a complaint.

2. B2B e-commerce is exploding

B2B companies are now leveraging the upcoming trends in e-commerce. It has been projected that e-commerce sales shall grow across the world hugely by 2020.  A survey conducted with 500 B2b business houses showed that about 80% of them accepted orders and payments through their website.

E-commerce is engulfing the millennials’ lives making their purchasing patterns consistent. Currently, it is their rapid evolvement in the digital world that has made them such an enticing arena.