What is eCommerce?
E-commerce, aka Electronic commerce, is the buying and selling of goods or services over an electronic network using the Internet. Buying and selling products and services online requires the exchange of data or funds to complete a transaction involving more than one company or people.
How does eCommerce business work?
E-commerce businesses work uniquely for every business module. Let’s see how an e-commerce business work in print-on-demand and dropshipping business.
Step 1: Build an online store
Create an e-commerce store on platforms like Shopify and Woocommerce.
Step 2: Product listings
List products that you wish to sell on your online store. You can add your designs to the products and push them directly from your print-on-demand partner Qikink to your online store.
Step 3: Set up a payment gateway
Set up a payment gateway to receive payments from your customers. The eCommerce platform uses several payment channels to handle payments safely.
Step 4: Receive orders
Customers make purchases in your store for their desired products and add shipping details.
Step 5: Order fulfillment
The orders are then sent to the print-on-demand partner for fulfillment.
Step 6: Printing & packing
The print-on-demand partner then prints your designs on the products and packs them for dispatch.
Step 7: Shipping
Order is shipped to your customer under your brand name.
Step 8: Customer Support
Collect customer reviews and feedback on products and services to improve your business.
What are the types of eCommerce businesses?
1. Business-to-Business (B2B)
B2B is a transaction between two businesses for products or services.
E.g., wholesalers or manufacturers selling to retailers.
2. Business-to-Consumer (B2C)
Selling goods or providing services to a customer is a B2C business model. The end customer is an individual here.
E.g., E-commerce giants like Amazon and Flipkart provide products directly to the customer.
3. Consumer-to-Consumer (C2C)
Products and services traded through a third party that provides a platform to carry out transactions is the C2C business model.
E.g. eBay, Etsy
4. Consumer-to-Business (C2B)
When a person offers their services or products to a business organization, this is called consumer to business. C2B includes influencers that provide visibility, photographers, consultants, freelance writers, etc.
Pros and Cons of eCommerce business model (bulleted points
Pros
1. Convenience
E-commerce has enabled individuals to buy and sell products and services from their comfort places and at their convenience.
2. Global reach
With the Internet, one can find potential leads from anywhere without meeting them personally.
3. Ease of business
eCommerce has enabled entrepreneurs to launch businesses without holding any physical stock or an office setup. You can also work from anywhere and manage your business.
4. Lower costs
Compared to brick-and-mortar stores, operating an online store is relatively easier because no initial investment is required to set up an office or hire employees.
5. Accessibility
An online store helps you reach your customers directly. You can optimize your ads as per your niche and create brand awareness.
Cons
1. Technical challenges
Maintaining a website, managing operations smoothly, internet connectivity, and site crashes may harm your business.
2. Logistics
Inefficiency in-order delivery for any reasons like damaged, lost, or incorrect product may negatively impact your business.
3. Competition
The eCommerce sector is growing rapidly; hence more businesses are shifting online or starting an online business. Hence, it is crucial for companies to maintain a good customer experience and keep track of competitors.
4. Security risks
E-commerce businesses are at risk of website breakdowns or the need to shut down websites, particularly if a security breach compromises sensitive consumer data.
5. Lack of personal touch
Visual representations of products offered by e-commerce shops using photographs or video cannot convey the entire experience that a real store provides.