What is E-Commerce?
The essence of E-Commerce is the place where transactions take place, but the place where transactions take place is transferred to the internet, so it can connect buyers and sellers more quickly, more easily and even across borders than traditional trading methods.
Future Trends of E-Commerce
As a business giant, Amazon will celebrate its 24th birthday in 2019. In the same industry, Amazon not only has a long life, but also its market value is rising year by year. By 2017, Amazon had a market share of 37%, and its market value was higher than Macy’s, Bestbuy, Target, Walmart… The total number of traditional retailers in the U.S. is more than $130 billion. According to Sellbrite’s forecast, Amazon’s market share will continue to rise in the next three years, and is expected to reach 50% by 2021. Statista’s statistics and forecasts show that e-commerce accounts for only 10.2% of global retail sales in 2017 and 17.5% in 2021. It is estimated that sales of online stores will grow by 78% in 2020. This shows that the sustained growth of e-commerce can be expected, from less than a fifth of the retail industry, but also represents its huge growth space.
How do you start your E-Commerce business?
Successfully occupying a place in the E-Commerce market often depends not only on business instinct and talent, but also on the basic understanding of E-Commerce platform. Therefore, before launching your e-commerce business, you can first understand the e-commerce platform, and then clarify it from the following three aspects: defining business types, choosing business models and commodity types, and further thinking about how to expand your e-commerce network business.
Defining Business Types
Type of E-Commerce Platform
Traditional E-Commerce platforms can be in two types: Self-Hosted E-Commerce platforms and Trustee-Managed E-Commerce platforms.
1. Self-Managed E-Commerce Platform
Enterprises need to deal with the operation and management of E-Commerce platform, including the design and development of E-Commerce platform, regular updates of web pages and installation and updating of software tools. The development and maintenance cost of this type of E-Commerce platform is quite high, but its advantages lie in that the enterprise can directly control the network sales platform, clearly grasp the sales data and ensure the security of the data.
2. Trustee-Managed E-Commerce Platform
The cost of development is relatively low. Enterprises do not need to manage the platform by themselves, but adopt the concept of “rent”. Product information updates and website maintenance and management are handled by software on demand (SaaS) vendors.
What’s the difference?
The first common example is WordPress partner WooCommerce. The manufacturer usually asks the company that specializes in the website to set up its own official website according to the needs, and then to find another host, server and website, install Google Analytics or Facebook Pixels. The overall content of the website is to make a comprehensive customized design according to your needs.
The second is more like a partnership with the Opening Platform, but it is also an official website of its own. The well-known E-Commerce platform for self-opening stores includes Shopify, Easystore and other.
This type of company has embedded the functions of e-commerce in the whole backstage system. People who want to open a store can basically build their own e-commerce shopping official network through simple dragging tools or “plug-in” purchase. Usually, you can have your own website directly on such a platform, and find the corresponding e-commerce services in the background, such as “members”, “special discounts”, “buy a thousand and give a hundred”, “install Google Analytics or Facebook Pixel Tracking” and so on.
But the functions of each platform are different, and they will have different functions depending on the different opening fees you choose.
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