E-commerce and E-business | E-commerce analyst | E-business analyst.
The new generation of E-commerce and E-business channel appeals especially to the dynamic and young population. E-commerce is the name given to the process of buying and selling goods over the web. However, e-business offers different services, not limited to commercial transactions. E-commerce and E-business are two developing ways of doing business that has started to gain importance over time. Gone are the days when you had to go to the grocery store to buy a single product. These days, when you place an order online, this product will reach you within minutes.
Online shopping is becoming popular because of its simplicity and convenience. This is only possible thanks to two electronic networks, e-commerce, and e-business.
E-commerce is concerned with the firm’s relationships with its customers, customers, or suppliers. Conversely, e-commerce means doing industry, commerce, and business with the help of information technology and communication.
Companies that want to get a share of the E-commerce and E-business pie have to learn the rules of the e-commerce ecosystem and develop strategies accordingly! How to set up an e-commerce site to take part in this huge ecosystem? How is the target market determined? In which industries does it make sense to sell online? All these questions and dozens of them are the steps of success in e-commerce.
The new situation created by this leads investors and entrepreneurs to virtual stores. E-commerce, which has a history of more than twenty years, will take place more in the commercial activities of the future.
INTRODUCTION TO E-COMMERCE
“Electronic commerce” or “e-commerce” is a term that refers to business transactions conducted online. Today, most of the people who use the internet are shopping through e-commerce in some way.
The first e-commerce was made in the 1970s. According to a report in The Guardian, students at Stanford University used Arpanet accounts and the school’s artificial intelligence laboratory to sell to students at the Massachusetts Institute of Technology (MIT). Thus, Pizza Hut became the “first company to do e-commerce” by selling pizza over the internet.
Internet-based commerce is increasing as people’s needs increase and diversify. Worldwide e-commerce sales reached $2.4 trillion in 2017. It is predicted that this figure will reach approximately 5 trillion dollars in 2021 (2). As the leaders of the business-to-consumer (B2C) e-commerce market, China, America, Japan, and the UK are taking their dominant positions in the global e-commerce market to even higher levels.
E-commerce and E-business, which show increasing social selling benefits every year, find more contact areas in Turkey as well. Turkey displayed significant growth in the rate of individual internet usage and the number of mobile broadband subscribers in 2018. While mobile channels stand out as the new norm in shopping, social media markets have also increased their effectiveness. The share of E-commerce and E-business in total retail trade in Turkey increased to 5.5% in 2018; an average of 30% growth has been recorded each year (3).
How to Start E-Commerce?
How can we start an online selling business?
You can start by learning the meaning, capacity, methods, and applications of e-commerce. The e-commerce capacity of your sector is also among the first things to know. In this regard, support can be obtained from government-supported e-commerce training programs or private e-commerce platforms.
The following should be considered when entering e-commerce:
Social media sales tips
using social media for sales
Today, social media platforms are no longer just places where people communicate and interact. Now, every social media platform has become a marketplace and digital marketing channel. Selling on social media is among the most popular e-commerce activities today. Both companies and private individuals can increase sales through social media on these platforms. Social media, which turns into an online shopping site, appeals to every consumer profile.
Offering an ideal environment for product advertisements and brand collaborations, social media also lays the groundwork for various commercial agreements.
The follower profile of the social media account gives direct potential customer insight. The new generation of E-commerce and E-business channel appeals especially to the dynamic and young population. The authorities of the aforementioned social media platforms also support sales via social media with sponsored posts.
How to sell on the marketplace
online marketplace for handmade goods are among the most popular E-commerce and E-business platforms in recent years. These platforms give commercial enterprises the opportunity to open online stores and offer their products for sale. In order to sell in these areas, it is necessary to pay commissions at different rates. Online marketplaces have different payment and payment criteria. It is necessary to have a commercial identity in order to sell through the marketplaces. Companies that can meet the necessary conditions can open a store on the E-commerce and E-business site and make sales.
Online marketplaces also have disadvantages. In addition, consumers from all walks of life are looking for products in the same environment as the target audience. For example; A clothing store in Kars can sell products to the consumer in Edirne. It provides the opportunity to market products in different places without incurring physical store costs. The costs of opening a store in these marketplaces are very low. Apart from these, it gives the opportunity to determine the sales strategy by observing the rival companies.
Selling on your own e-commerce website
The rapidly growing online sales market in the world forces companies to establish a private E-commerce and E-business site.
These basic conditions are:
- Budget: Budget planning should be done for e-commerce. Website infrastructure, digital advertising efforts, payment channels, shipping, and supplier costs should be considered.
- Virtual pos: To establish an e-commerce site, it is necessary to be a taxpayer, that is, to establish a company.
- Domain name: A domain name that is easy to pronounce, memorable, and not counterfeit has a positive impact on sales.
- Infrastructure: The infrastructure of the website is of great importance for e-commerce. Many applications and tools such as the integration of payment systems, Search Engine Optimization (SEO), and the compatibility of the site with mobile devices are among the indispensable factors for e-commerce.
- Follow-up: Starting an e-commerce business requires serious follow-up.
- Marketing: Marketing is an important item for increasing the awareness and sales of the e-commerce site.
Drop Shipping/ Dropshipped
Drop Shipping means “drop-out”. No stock is kept for the sale of the product. Instead, incoming orders are directed to the supplier company and the products are delivered to the customer from the supplier’s warehouse. Drop Shipping, which has low capital and operating expenses, is an ideal e-commerce sales alternative, especially for investors or entrepreneurs who are new to e-commerce.
When the consumer buys a product, the seller directs the order from the site to the supplier. The supplier sends the product to the consumer. The supplier company sends the visual and textual content and information of the products it wants to sell to the company that wants to sell Drop Shipping. This company also adds the contents of this product to its e-commerce site.
Vertical E-Commerce Criteria
what is vertical e-commerce?
It consists of only one main category or a sectoral section. Example: Shoes
The management of products is less in terms of diversity and is controlled. When it is handled with a sales focus, customer segmentation comes to your site knowing the product to be purchased.
There is quick interaction in campaigns and promotions.
Horizontal E-Commerce Criteria
what is horizontal e-commerce
It consists of multiple categories and sectoral sections. Example: Clothing, Toys, FMGC
Considering the sales focus, you can offer quite a variety of products for your customers.
It may be necessary to prefer categorical campaigns and promotions for quick interaction in campaigns and promotions.
Products have complex structures. Therefore, staffing is required.
When we consider both spines, they have positive or problematic aspects according to them. While the product class is low in vertical, you can meet your customers with more products horizontal. In the vertical site, product management will be easier and more practical due to fewer products, while on the horizontal E-Commerce side, this situation has a more complex setup.
How is the Development of E-Commerce in the World?
The fact that e-commerce is over the internet has drawn a separate e-commerce model in almost every country. For example, there are many brands and systems of E-Commerce between America and China, and between Europe and Asia on the one hand. In particular, the USA, the UK, and China achieve very high volume sales in many branches and categories of e-commerce. When we examine the structures of these countries, they also have very high technologies in information technologies. High technology can combine with the efficient internet age and increase the power of E-Commerce.
Is E-Commerce Business an Easy Job?
Factors such as the world’s shift to digital, the availability of 24/7 sales in e-commerce, and easier access to large audiences affect people. But of course, they also consider the question: Is e-commerce as easy as it seems? If a clear answer to the question is required, e-commerce is not as easy a task as it seems.
In general, as hard as normal trade is, e-commerce has different difficulties according to its own. Of course, as every problem has a solution, there are also solutions to the problems in e-commerce. First of all, you can create your e-commerce site by starting to benefit from Projesoft e-commerce packages. But after you set up your e-commerce site, there are other works you need to do. After you set up your e-commerce site and add your products, there are many different dynamics such as marketing and attracting customers to ensure your site’s awareness. Now let’s start to examine them in detail.
Will You Be Single Or Will You Have A-Team?
You need a team to manage your e-commerce site. There are different items such as product management, order tracking, marketing, and advertising studies, content studies, and updating the site. It seems a little difficult for you to fully complete this workload. Therefore, you need a team to be able to do this workload.
Do you have time?
If you are thinking of entering the e-commerce business and you do not have the time, do not enter this business. The e-commerce business is not a business like a customer came to the site, took it, and left. It includes many difficulties until the sales process. You need time to manage your e-commerce site, order tracking, warehouse, and stock management.
If you are thinking of moving your physical store to e-commerce at the same time, you will understand after this article that e-commerce is not as easy as you imagine. Just like the physical store, it has its own working hours in e-commerce. If you don’t spare time for your e-commerce business, it will be a miracle for you to be successful in the e-commerce business.
Calculate the Competition
You also need to consider the crazy competition in the e-commerce business. It will be important for you to create a sketch relevant to your industry and do competitor analysis. You should examine the works of the companies that entered the sector before you in the e-commerce business and the customer profiles of those companies.
Marketing and Advertising Studies/ Majoring in advertising
One of the sine qua non for brand awareness and sales activities in e-commerce is to carry out advertising and marketing activities. In order to reach the target audience you have determined and to bring that audience to your e-commerce site, you need to give importance to marketing studies. In addition, you need to actively use social media channels. Your advertisements on social media channels are of great importance to you.
If you do not have experience in this field, you will need to get outside support for this job. Of course, you will need to allocate a budget for this work.
Is There Capital?
- If you want to do the e-commerce business, you need to have a certain capital. E-commerce is not one of the businesses that you can say you can do with a small amount of money. We can say that the costs of pen and pen are as follows:
- Budget for marketing and advertising
- Salary of people on your team
- Costs for software
- Payment for e-commerce infrastructure system
- Warehouse and stock costs
- Expenses for the site