E-commerce is a business model that has shaped the way the world receives products and the way people choose to order them. From clothes to sofas and gadgets, almost all the items you can get in physical stores are now available for sale online. With over $260 billion worth of e-commerce transactions annually, this business model is one of the most popular there is in the current age, and there’s no reason not to start now if you’re interested.
What is e-commerce?
In simple terms, e-commerce is any financial transaction that takes place over the internet. These stores are hosted platforms that connect sellers with buyers and oversee the exchange of goods for cash. Online stores are like a virtual representation of physical stores. Taking that model and moving it online has opened a number of new opportunities when it comes to creating a business.
How do e-commerce stores work?
Just like any store, you display your products, get people to visit your store, and they make a decision about what to buy. On the plus side, e-commerce stores are easy to set up using platforms like Shopify, and they don’t require a fortune to run.
Customers get their products shipped directly to them when they complete their payment, and when the transaction is complete. Whether you intend to sell products manufactured yourself or through dropshipping, having an e-commerce store surely has its pros.
Wider client base
Having an e-commerce store exposes you to a wider, global market. It brings the world to your fingertips and allows you to explore various markets. You can sell to anyone in the world and at any time regardless of the time zone.
Your products might get noticed by millions of people, which translates to more sales and product turnover. It gives you an edge over your competitors who are yet to key into e-commerce.
Your products are always available
Unlike physical stores, the internet never sleeps. Your products will be available at all times, even on vacation. Your customers get to buy products at their convenience with no rush of close time because you are available round the clock.
These days, many people prefer to buy items from the comfort of their rooms and offices rather than a physical store. The millennial generation is actively participating in this model, which certainly makes it the mode of purchase of the future.
The risk is less
An e-commerce store is cheap to run, and the bills are less than having a traditional brick and mortar store where you have operational costs. With less staff, no utility bills, and rent, you can save quite a bit of money by choosing to open an e-commerce store. Having an online store also eliminates the chances of your goods being shoplifted or damaged by your workers.
In summary
If you have been thinking about getting into starting a business but the concept seems overwhelming, then an e-commerce store can be the perfect balance between starting something new and playing it safe.
