Search Results

Weighing the Differences Between eCommerce and Traditional Commerce

Due to the increased popularity and availability of Internet access many traditional small business are considering eCommerce as a valid and profitable sales channel. However, eCommerce and traditional commerce are very different, and it’s important to weight carefully the differences between eCommerce and traditional commerce in order to decide if it would be a good fit for your business or just a costly mistake.

Direct Interaction

Traditional commerce is often based around face to face interaction. The customer has a chance to ask questions and the sales staff can work with them to ensure a satisfactory transaction. Often this gives sales staff an opportunity for upselling, or encourage the client to buy a more expensive item or related items, increasing the shop profits. On the other hand, eCommerce doesn’t offer this benefit unless features such as related items or live chats are implemented.

Lower Costs

eCommerce is usually much cheaper than maintaining a physical store in an equally popular location. Compared with costs such as commercial space rent, opening an online store can be done at a fraction of the price for less than $50 per month. This can prove invaluable for small business owners who don’t have the startup capital to rent prime retail space and staff it to be able to sell their goods.

Reach

With an online shop you can do business with anybody living on a country you are able and willing to send mail to, unlike traditional commerce where you are restricted to people who actually come to your shop. This also opens the door to many other forms of marketing that can be done entirely online, which often results in a much larger volume of sales and even foot traffic to the store. An online store has no capability limits, and you can have as many clients as your stock can serve.

Returns Rate

In a traditional store, the customer will be purchasing the product in person, which has some benefits for both the him and the store. The customer will be able to touch and check the items, to make sure they are suitable, and even try them on, which reduces the number of returned items or complaints due to an item not being as advertised on a catalogue. or promotional leaflet. Expect a significantly higher rate of returns if you start trading online, as many will just order and try the items at home, and won’t hesitate to return them as they can do it by post without having to talk with anybody in person.

Credit Card Fraud

The remote nature of ECommerce makes much more difficult to detect fraud, which means stores can lose money due to fraud. While traditional commerce is not totally secure, it’s easier for a sales attendant to verify that the person buying something is actually the owner of the credit card, by asking for photographic ID. However, the fight against card fraud is well underway and banks and responsible eCommerce owners work together to verify that all card use is legitimate.

Ecommerce Trends To Watch For In 2017

Many studies have shown a double-digit rise in worldwide ecommerce sales in 2016. Many analysts even predict that the worldwide ecommerce sales will increase consistently till 2020. However, the number of people accessing ecommerce websites on their mobile devices has been increasing rapidly. Likewise, a number of studies have shown a steady increase in mobile commerce sales driven by customers’ mobile engagement behavior.

Each enterprise needs to ensure that its ecommerce website keep users engaged by functioning like a mobile app. It must optimize its ecommerce website for mobile devices and allow users make payment through popular mobile wallets. At the same time, the business also needs to keep track of the emerging ecommerce trends to accomplish higher conversion rate and increase digital commerce revenue. There is a series of trends that will impact and shape ecommerce sales in 2017.

7 Trends that will Impact and Shape Ecommerce Business in 2017

1) Personalized Shopping Experience

Unlike mobile apps, websites lack the capability to personalize user experience by taking advantage of the features of underlying device and operating system. But many enterprises nowadays use analytics tools to gather a wide variety of customer data. The data collected through analytics tools help businesses to identify the preferences and understand the behavior of individual customers. Also, an ecommerce business can leverage the information to engage customers by showing the right product, content, ads, and deals to each customer. It can further personalize the shopping experience of each customer and boost ecommerce sales by delivering app-like user experience.

2) Social Selling

The data posted on various websites depict that people spend more time on social networking platforms than other websites. Many businesses promote their products or services on popular social networks to divert visitors to their ecommerce websites regularly. There are a number of social networking websites that allow users to buy products or services directly without visiting an ecommerce website. Many social networks are even planning to roll out new features to generate more revenue by facilitating social selling. The ecommerce business owners can take advantage of these social selling options to promote their products more effectively and boost sales.

3) Chat Bots

Many high-traffic websites nowadays interact with customers through chat bots. In addition to working as customer service executives, the chat bots also help users to perform commercial activities like shopping and booking. Many ecommerce website developers and owners will soon explore ways to keep visitors engaged by interacting with the machines efficiently. However, an enterprise has to deploy a variety of chat bots to meet the varying needs and preferences of customers. Some ecommerce companies have already used chat bots to provide personal shopping service and send messages. Many enterprises will soon use chat bots to make their ecommerce website more interactive and make shopping experience personalized.

4) Artificial Intelligence

The popular mobile platforms make people use artificial intelligence on a daily basis. A large number of people nowadays perform common tasks by talking to their machines through Google’s Assistant, Apple’s Siri, or Microsoft’s Cortana. Large ecommerce companies like Amazon have already started using artificial intelligence to chat with customer. But the ecommerce websites will need a variety of personal assistant to optimize the end-to-end shopping experience. More and more ecommerce businesses will take advantage of artificial intelligence to interact with customers in a smarter way and without deploying additional staff.

5) Contactless Payment

The mobile commerce apps enable users to choose from many payment modes – debit/credit card, internet banking and mobile wallets. A large number of buyers nowadays prefer making payment through their mobile wallets to debit or credit cards. In USA, some companies like Starbucks are using contactless payment options successfully to generate more revenue. Hence, the customers will love to buy product from an ecommerce website that allows them to use contactless payment options. Hence, many enterprises have to redesign their ecommerce websites in 2017 to accommodate the emerging mobile and contactless payment options.

6) Same Day Delivery and Return

There are many people who still prefer brick-and-mortar stores to web stores due to instant delivery. The web store owners must focus on reducing the delivery time of online orders to make more people buy products online. A number of studies have also shown that many customers do not hesitate to pay extra for same-day delivery. Hence, the ecommerce businesses have to explore ways to reduce delivery time of orders. Some companies will even provide flexible delivery option to customers and set up local drop-off points to ensure faster delivery. Likewise, they also need to ensure that each customer has option to return orders without putting extra time, effort and money.

7) User Generated Content

Many people nowadays read the product review and comments posted by other buyers before buying a product. Likewise, many people even choose a web store based on the shopping experience posted by other customers. Hence, enterprises can easily boost ecommerce sales by providing additional information about the products through pictures, description, specifications, and user reviews. Many ecommerce businesses will encourage customers to write reviews and share their shopping experience. They will even explore ways to promote the product more effectively through the user generated content.

However, the ecommerce trends keep changing at regular intervals. Hence, an enterprise has to keep track of the emerging trends to generate more ecommerce revenue. At the same time, it must explore ways to attract and retain customers by improving discovery, logistics and delivery through latest technologies.

What Is Ecommerce and How Does It Affect You?

What is ecommerce? Ecommerce which stands for electronic commerce, is a form of conducting business over the Internet by using online transactions to buy and sell either products or services. The creation and development of electronic commerce is directly a result of the evolution and spread of the Internet. Over the years e-commerce has seen explosive growth and an even brighter future.

Initially, the lack of central authority to define rules and sanctions left some fearing that the Internet is unsafe for the development of commercial activities. Using the Internet for commercial purposes has long been rejected on these grounds. The goal of the major players involved with the development of the Internet in the 80s and 90s was to have free and open sharing of information. Widespread access to the Internet has completely changed all of that.

Over the years, the Internet has turned into a major platform for businesses to reach customers from all over the world and build upon their brand. As online security slowly began to improve, more and more people feel comfortable shopping online. Now the trend is so widespread that it’s hard to imagine anyone with access to the Internet not visiting and buying from an ecommerce website.

For a business, what is ecommerce?

In the beginning, only major businesses with huge budgets were able to develop ecommerce websites, because hiring a web designer costs a lot of money. Currently all of the major offline retailers have a presence online. Fortunately in recent years more and more small businesses are starting online stores as well, because the barrier to entry decreased dramatically due to the development of all-in-one ecommerce solutions. Now retail businesses both big and small are able to expose their products to millions of people on the Internet, which if marketed properly could dramatically increase profits for the business.

For a consumer, what is ecommerce?

In this new age of the Internet, nothing beats the convenience that e-commerce has brought people all over the world. Not only are they able to find just about anything their hearts desire online, they can also compare online retailers to find the best deal on the same product. Consumers are no longer limited to what’s available outside their doorstep, they have access to things halfway across the world. There is also no need to make a trip to a store, ecommerce allows consumers to buy anything they want 24 hours a day no matter where they are.