According to a study by e-commerce expert Gary Hoover, the growth of e-commerce companies overall has surged over the past 14 years for some product lines, especially clothing and beauty products. Between 2000 and 2014, we achieved an average CGR of 25% on average. This trend does not slow down. In fact, growth forecasts show that by 2022, e-commerce revenue is expected to exceed US $ 638 billion in the US alone. Global e-commerce growth prospects are on the rise. In 2020, retail sales are expected to exceed $ 4,058 trillion. Future data reinforces e-commerce growth trends. 2.14 billion digital buyers predict worldwide by 2021. US e-commerce revenues are expected to exceed 123M by 2022 for apparel, footwear, and accessories (Statista). Buyers spend 36% of their budget on average online (BigCommerce). Interestingly, there are still many opportunities in the online marketplace.
According to US Department of Commerce data, e-commerce sales currently average 9.1% of total retail sales. This means that there are still opportunities for your brand to launch an ecommerce website and expand reach.
It's easy to see that e-commerce businesses are the best time to grow when considering e-commerce sales opportunities (for example, adding Amazon and eBay store information to a sales method) through e-store sales.
There's never been a better time to build a business than ever before. Entry costs are lower than ever. The ability to access and qualify professionals is much easier. We have never had the ability to talk to and adjust with our customers.
- Eric Carlson, 10x Factory Co-Founder
What is e-commerce?
Essentially, e-commerce (or e-commerce) is the buying and selling of goods (or services) on the Internet. From mobile shopping to online payment encryption, e-commerce encompasses a variety of data, systems and tools for both online shoppers and sellers.
Most businesses with e-commerce use e-commerce shops and / or e-commerce platforms to conduct online marketing and sales activities and oversee logistics and fulfillment. There are generally six major e-commerce models that can classify your business.
Let's take a closer look at each type of e-commerce.
1. Business-to-Consumer (B2C)
B2C e-commerce encompasses transformations between businesses and consumers. This is one of the most widely used sales models in e-commerce environments. When buying shoes at an online shoe store, it is a B2C transaction.
2. Business-to-Business (B2B)
B2B e-commerce is related to sales made between businesses such as manufacturers and wholesalers or retailers. This type of e-commerce is not consumer-oriented and occurs only between businesses. Most B2B sales focus on repackaged or combined raw materials or products before they are sold to customers.
B2B buyer trainingEducating customers to use new B2B tools is important for adoption.
3. Consumer - Consumer (C2C)
One of the earliest forms of e-commerce is the C2C e-commerce business model. Customer-to-customer relates to the sale of products or services that the customer has speculated. This includes customer-to-customer sales relationships (such as eBay or Amazon).
4. Consumer-to-Business (B2B)
C2B reverses the existing ecommerce model (which is common in crowdfunding projects). C2B allows individual consumers to access their products or services for business buyers.
For example, there is a business model like iStockPhoto. Stock photos can be purchased online by other photographers.
5. Business-to-Administration (B2B)
This model deals with transactions between online business and administration. Examples include products and services related to legal documents and social security.
6. Consumer to Administration (C2A)
Here are the same ideas, but there are consumers who sell online products or services to the administration. C2A may include online consultation, online tax preparation, and so on. Both B2A and C2A focus on increasing government efficiency through information technology support.
40 years of e-commerce history
E-commerce has helped countless businesses grow with new technologies, improved Internet connectivity, and wider consumer and business adoption. One of the first e-commerce transactions was created in 1982 and is now growing 23% from the previous year.
Few major e-commerce events are as below:
• In 1969, CompuServe , the first major e-commerce company, was founded.
• In 1979, Michael Aldrich invented electronic shopping.
• 1982 Boston Computer Exchange is released as one of the first e-commerce platforms.
• In 1992, Book Stacks Unlimited began as one of the book's first online marketplaces.
• 1994 Netscape launches its first Web browser, Netscape Navigator, which makes it easier for users to navigate online.
• Amazon and eBay are released in 1995 .
• In 1998, PayPal started with an online payment system.
• In 1999, Alibaba.com started.
• In 2000, Google launched AdWords as an online search advertising tool.
• In 2005, Amazon shipped Amazon Prime with a fast payment to its members.
• Esty 2005, online marketplace for handmade and vintage launches.
• In 2009, BigCommerce will be released as an online store platform.
• In 2009, Square, Inc. was established.
• In 2011, Google Wallet will begin with an online payment system.
• In 2011, Facebook launched sponsorship news as a form of early advertising.
• In 2011 the stripes will begin.
• 2014 Apple Pay launches in the form of mobile payments.
• 2014 Jet.com will start.
• In 2017, Instagram shoppable posts was introduced.
• Cyber Monday revenue in 2017 exceeds $ 6.5B.
• 1969 - CompuServe is established.
• In 1969, an electrical engineer, Dr. The early CompuServe technology, founded by John R. Goltz and Jeffrey Wilkins, was built using dial-up connections.
• In the 1980s, CompuServe introduced some of its early forms of e-mail and Internet connectivity to the public and began dominating the e-commerce environment by the mid-1990s.
• 1979 - Michael Aldrich invented electronic shopping.
• British inventor Michael Aldrich introduced electronic shopping in 1979 by working on a telephone line connecting a modified TV to a transaction processing computer.
• This enabled external parties to open and share closed data for secure data transmission, and this technology became the foundation upon which modern electronic commerce was built.
• 1982 - Boston Computer Exchange starts.
• When the Boston Computer Exchange was founded in 1982, it was the world's first e-commerce company. Its main function was to act as an online marketplace for those interested in selling used computers.
• 1992 - Book Stacks Unlimited is the first online book market.
• Charles M. Stack introduced Book Stacks Unlimited in 1992 as an online bookstore. It was three years before Jeff Bezos introduced Amazon.
• Originally the company used a dial-up bulletin board format, but in 1994 the site was switched to the Internet and operated on the Books.com domain.
• 1994 - Netscape Navigator starts up as a web browser.
• Marc Andreessen and Jim Clark co-authored Netscape Navigator as a web browsing tool and officially announced it in October 1994.
• In the 1990s, Netscape Navigator became a popular web browser on the Windows platform before the advent of modern giants such as Google.
• 1995 - Launch of Amazon and eBay.
• Jeff Bezos introduced Amazon in 1995 as an e-commerce platform.
• That same year, Pierre Omidyar introduced AuctionWeb, which later on will become what we know as eBay. Since then, both have become a huge e-commerce sales platform that allows consumers to sell online to customers around the world.
• 1998 - PayPal begins with an e-commerce payment system. Originally introduced by Confinity, founders such as Max Levhin, Peter Thiel, Nosek and Ken Howery, PayPal appeared in the e-commerce phase as a remittance tool at the end of 1998.
• By 2000, it merged with Elon Musk's online banking company and gained fame and popularity.
• 1999 - Alibaba is released. Alibaba Online started in 1999 with an online marketplace with over $ 25 million in funding.
• In 2001, the company made a profit. B2B, C2C, and B2C platforms.
• 2000 - Google introduces Google AdWords as an online advertising tool. Google Adwords was introduced in 2000 as a way for ecommerce companies to advertise to people using Google search tools. Using a short text ad copy and display URL, online retailers began using this tool in the context of a Pay Per Click (PPC).
• 2005 - Amazon introduces Amazon Prime membership. Amazon introduced the Amazon Prime in 2005 as a way to get free shipping for two days at an average annual fee. Members also have access to member-only events such as streaming services such as Amazon Video and "Prime Day," which includes other preferences such as discounted one-day shipping. This strategic move helped boost customer loyalty and encourage repeat purchases. Today, free shipping and shipping rates are the most common requests for online consumers.
• 2005 - Etsy is released. Etsy started in 2005 and allows crafters and small dealers to sell their products through the online marketplace. As a result, the creator community has been online and has expanded its reach to 24/7 buying audiences.
• 2009 - Square starts. Square was founded in 2009 by Jack Dorsey and Jim McKelvey. In 2010, we launched the first Square apps and services. Square allowed offline retailers to use debit and credit cards for bricks and mortar for the first time. The idea occurred when Dorsey was unable to sell glass faucets and accessories for $ 2,000 in 2009 because McKelvey (Dorsey's St. Louis friend at the time) did not receive a credit card.
• 2009 - BigCommerce starts. Eddie Machaalani and Mitchell Harper co-founded BigCommerce in 2009 and introduced it as a 100% bootstrap e-commerce store platform. Over the next few years, more than $ 8 billion of sales have been handled and are now headquartered in Austin, San Francisco and Sydney.
• Other e-commerce technology platform providers have also been launched at the same time. Shopify (2006) and Magento (2008) are recognized as market leaders with BigCommerce. Internet retailer's 2018 ecommerce platform guide saw all three of BigCommerce's annual store growth and revenue tops.
• 2011 - Google Wallet is now a digital payment method. Google Wallet was introduced in 2011 as a peer-to-peer payment service that allows individuals to send and send money from mobile devices or desktop computers. By connecting your digital wallet to a debit card or bank account, you can pay for the product or service through these devices. At this time, Google Wallet, in combination with Android Pay, is now known as Google Pay.
• 2011 - Facebook publishes sponsor news as a form of early advertising.
• In 2011, Facebook began providing sponsors with initial advertising opportunities for business page owners. With these paid campaigns, ecommerce businesses can use social networks to reach specific audiences and get news feeds from a variety of targeted audiences.
• 2011 - Stripe release. Stripe is a payment processing company originally built for developers. It was founded by John and Patrick Collison.
• 2014 - Apple Pay was introduced as a mobile payment method. As online shoppers use mobile devices more often, Apple has introduced Apple payments as a mobile payment and digital wallet tool that allows users to pay for their products or services to Apple devices.
• 2014 - Jet.com will start. Jet.com was founded in 2014 by Mike Hanrahan and Nate Faust and entrepreneur Marc Lore (who sold his former company Diapers.com to Amazon.com). The company competes with Costco and Sam 's Club to provide services to those looking for the lowest prices for longer delivery times and larger orders.
• 2017 - Shoppable Instagram was introduced. Instagram Shopping started in 2017 with eCommerce partner BigCommerce. Since then, the service has expanded into an additional e-commerce platform and Instagram users can immediately click on the item and go to the product page of that product to make a purchase.
• 2017 - Cyber Monday's sales exceeded $ 6.5B. With the increase in e-commerce in 2017, online sales have earned $ 6.5 billion on Cyber Monday, a 17% increase from the previous year. Mobile sales break records with sales over mobile devices exceeding $ 2 billion.
Impact of e-commerce
The impact of e-commerce is having a ripple effect on everything from small businesses to global corporations.
1. Large retailers are forced to sell online
For many retailers, the growth of e-commerce has broadened brand reach and positively impacted revenue. But for other retailers struggling to embrace the online market, the impact was different. Retailers in the mid-market are seeing the greatest change in the impact of e-commerce at a high level. Foursquare data shows discount stores and high-end retailers keep their footsteps with consumers, but e-commerce is added to the fierce competition surrounding mid-tier retailers. Research has shown that one type of retailer has had a major impact on the rise of e-commerce. Department store. Chains like Sears and Macy's have seen overall sales decline when Amazon begins to become a consumer of products traditionally purchased at department stores.
2. E-commerce helps small businesses to sell directly to their customers.
The adoption of e-commerce by many SMEs was a slow process. But those who adopt it have found that e-commerce can open up new opportunities that were not possible before. SMB owners gradually start e-commerce stores, diversify their products, reach more customers and better accommodate customers who prefer online / mobile shopping. According to Gallup research, two of the 10 small and mid-sized companies have expanded their e-commerce presence over the past two years and 11 percent said they plan to increase their e-commerce efforts next year.
a) Online brands should be prominent.
b) Your customer is buying your identity, not buying your product.
c) The sale t-shirt is one thing; You may get some sales and some dedicated fans. But selling a T-shirt lifestyle will lead to a much longer-term success. Think about why people wear brands like Patagonia. They can easily purchase the exact same clothing options for North Face, REI or dozens of things. However, Patagonia was prominent because of the environmental movement. They built a brand-focused lifestyle for those who practice preaching, advocate for something, love and preserve the outdoors.
3. B2B companies begin to offer online ordering experiences like B2C
According to data from Four51, e-commerce in the B2B world mostly accounts for most of the sales by 2020. Another dataset represents 79% when a B2B customer expects to be able to order from an e-commerce website.
E-commerce solutions enable self-service, provide a more user-friendly platform for price comparison, and help B2B brands better maintain relationships with buyers.
Academic research has shown that e-commerce has had a great positive impact on the B2B market by enabling process improvements and lowering overall operating costs.
a) B2B consumers are also B2C consumers.
b) B2B customers like a B2C customer think every day and should sell accordingly.
c) B2B buyers have an increasing number of millennials and sales are approaching differently. The B2B brand must be online and must adjust the sales techniques and sales methods to this new generation of buyers.
4. The rise of e-commerce marketplace
The e-commerce market has been growing globally since the mid-1990s with the launch of giants known today as Amazon, Alibaba and others. Amazon is an outlier in relation to the growth of the e-commerce market, but the new e-commerce transformation is leading. By offering a wide choice and extreme convenience to our customers, we were able to scale quickly through innovation and optimization on the go. Amazon is especially famous for its unique growth strategy that has helped to achieve massive adoption and record sales.But Amazon does not do this alone. As of 2017, 51% of the products sold on Amazon were sold by third-party merchants (not Amazon).
The seller must follow the strict rules imposed by Amazon, but it can earn high profits from sales in the market.
Find more statistics at Statista
5. Supply chain management has evolved
According to survey data, one of the main effects of e-commerce on supply chain management is to shorten the product lifecycle.
As a result, producers are offering a deeper and wider range of products as a buffer against price erosion. However, this also means that the warehouse is seeing large quantities of inventory in and out of their facilities.
As a result, some warehouse companies are providing value-added services to enable e-commerce and retail operations to operate more smoothly and effectively.
These services include:
a) Separate inventory / storage space for online sales versus retail sales.
b) Other packaging services.
c) Inventory / Logistics Supervision.
6. New jobs are created, but traditional retail jobs are reduced
Jobs related to e-commerce have doubled over the past five years and are significantly higher than other types of retail business in terms of growth. But the growth of e-commerce operations is only a small part of the overall employment puzzle.
Some simple facts about how e-commerce has affected employment:
a) E-commerce jobs increased by 334%, creating 178,000 jobs since 2002.
b) Most e-commerce operations are located in the metropolitan area's mid- to large-sized areas.
c) Most e-commerce companies have fewer than four employees.
d) Scholars point out that e-commerce will continue to create jobs in areas of high technology such as the information and software sector, and the demand for increased productivity will increase.
Researcher Nuray Terzia concludes "In addition to net employment income and loss, e-commerce will affect the demand for specific technologies. E-commerce has evidence that responsibility and decision-making require new technologies based on information."
However, if efficiency is improved from the traditional retail outlets on the back, job loss or manpower reduction can occur. Like major market changes, there are positive and negative impacts on employment.
7. Customers shop differently
E-commerce (now all-round retail) has had a major impact on customers. It is revolutionizing the way modern consumers shop. Today we see that 96% of Americans who have access to the Internet have made online purchases at some point and 80% have purchased online last month. In addition to frequent shopping for e-commerce sites, 51% of Americans prefer online shopping rather than stores. Millennium is the largest demographics of online shoppers (67%), but Gen Xers and Baby Boomers are lagging 56% and 41% online shopping, respectively.
Omni-channel consumers will want more Omni Channel is in that position.
For example Carter. Currently, only 12% of customers are "multi-channel" or "Omni Channel" buyers. This means shopping directly at stores and online stores. However, they consume two to three times the number of single channel customers (store or online only).
Leaving existing customers to use other channels (online or direct) simply leaves room for organic growth.
- Brett Owens, Marketing Director and Co-Founder, Leaddyno
8. With social media, consumers can easily share products online
The researcher found that e-commerce had an interesting social impact. Especially in the context of social media
Today, ecommerce buyers are affected and buy products or services based on recommendations from friends, colleagues, and trusted sources (such as influencers) on social networks like Facebook, Instagram, and Twitter.
Korea's SME Global social media + omni e commerce macconny21 is another essential opportunity to develop a huge all-in-one platform and continuously develop technology, In order to reach the new ecommerce revolutionary ranks, it is necessary to acquire and expand the representative brand smartphone and database of Korea.
Korea's social media. Ecommerce is on its way. In particular, we need to strengthen our payment systems such as alipay payco and make security more important than anything else for the future.In an international journal of market research, M. Nick Hajili wrote: "The trust that social media recommends has a significant impact on the intent to purchase, so trust plays an important role in e-commerce, by directly affecting purchase intent and indirectly impacting perceived usability." If you've been inspired to recommend on Facebook or to purchase recommended products on the Instagram board, you've seen the social impacts associated with e-commerce. Social security is a modern word of mouth. Word of mouth is undoubtedly the most important marketing strategy for any business. It's a good idea to set up an ad for $ 10. Assuming you are profitable based on your CoG, etc., keep the size of your ad. But with 10 friends, you can say 1 person for your brand, 5 of them buy ... and repeat for all customers coming into your store. You will not be able to keep up with inventory and shipments as you will get a lot of sales.
- William Harris, e-commerce marketing specialist, Elumynt
9. Global e-commerce is growing rapidly
Electronic commerce is increasing worldwide. Forbes reported that 57% of people surveyed in 24 countries on six continents in the past six months made online purchases in 2016. And the global impact of e-commerce has been particularly large in countries like China. This is defeating growth in all other countries. Since 2014, China has seen significant sales growth each year and retail ecommerce revenue is expected to be nearly $ 2 billion by 2019. The world is now the greatest opportunity. Today's biggest opportunity brand is reach. Online brands are likely to reach unlimited customers around the world. It's very difficult, but I think it's the biggest opportunity in online business.
- Emil Kristensen, CMO and co-founder, Sleeknote.
Advantages of e-commerce
Ecommerce offers a number of benefits, ranging from quick purchasing to the ability to reach many potential customers. Let's take a closer look at the biggest prizes you have to offer.
1. Buy faster for your customers
Customers can shop anytime, anywhere via e-commerce. In other words, buyers can quickly buy the products they want without being constrained by traditional brick and mortar store hours. You can also minimize order fulfillment delays with shipping upgrades that provide fast delivery to your customers (e.g., Amazon Prime Now).
2. The company can easily reach new customers
Ecommerce allows companies to reach new customers around the world more easily. Ecommerce stores are not tied to a single geographical location and are available to all online customers. The benefits of social media advertising make it possible for your brand to connect with a large audience ready for purchase.
Build a brand community
Community building is a long-term play and an underrated asset. But if you have a good reason, it's difficult to build a true community. By building a strong and active Facebook community at ConversionXL, we gained customer insight and natural customer feedback, but we were able to start communicating directly with our customers and their fans. Organically occurring discussions are amazing. Communities are invaluable in addition to branding / acquisition issues.
- Alex Birkett, HubSpot Growth Marketing Manager
3. Reduced operating costs
An e-commerce company can start a store with minimal operational costs without the need for physical stores (employees do not need to hire staff). As sales increase, brands can easily scale operations without hiring large-scale real estate investments or large-scale human resources. This means overall high margins.
4. Personalized experience
Automated and rich customer profiles can provide a highly personalized online experience for e-commerce customers. For example, if you show related products based on past purchasing behavior, AOV will increase and you may feel like buyers truly understand you as an individual. In a very recent history following AMAZON's customized lead, Amazon Go, which combines technology and customer data to create a new retail shopping experience, is what every brand should investigate for takeaways. - Jordan Brannon, President, Coalition Technologies Disadvantages of e-commerce Today's e-commerce is becoming more and more flexible, but it still has unique drawbacks. The following are the disadvantages of e-commerce retail. 1. Limited interaction with customers. It may be more difficult to understand the needs, requirements, and concerns of e-commerce customers without facing them directly. There is still a way to collect this data (survey data, customer support interactions, etc.), but more work is needed than talking to the shopper on a daily basis. FlipSide of FACE-TO-FACE I think the biggest change in retailing in recent history is the ability to talk directly with customers. In the past, CEOs were not necessarily at the forefront of sales. But with social media and ecommerce, you can talk directly to the vast majority of your customer base.
Through these conversations, you can speak your language, do better marketing, ask your customers what they really want, show off better products, hear their opinions, and advise on more successful product launches and overall improvements. - Eric Carlson, co-founder of the 10x plant. 2. Technology disruption can affect your ability to sell. If your e-commerce website is slow, damaged, or unavailable to customers, you will not be able to sell. Site crashes and technology failures can compromise customer relationships and negatively impact revenue. 3. No ability to test or test. Shoppers who want to experience products (particularly real goods areas such as clothing, footwear and beauty products) can have limited e-commerce experience. But with the help of video, product image and VR technology, businesses are looking for new ways to overcome this aspect of the online shopping experience. Future studies of e-commerce According to research, the future of e-commerce is predicted to be bright. By 2022, e-commerce revenue in the United States is expected to reach $ 638 million, with toys, hobbies and DIY showing the biggest growth. And there is no trend. Many Americans view online shopping as a must. 40% say they can not buy without online shopping.
Electronic commerce expert Gary Hoover's data project It is also noteworthy that e-commerce retail sales will eventually end in retail sales of bricks and mortar. In other words, even if the online sales trend continues to increase, a lot of business is going on. But that's not all. Experts predict that most e-commerce interactions will soon be a channel experience for buyers. In other words, we expect to be able to research, browse, shop and buy seamlessly across disparate devices (e.g., standalone web stores, Amazon presence, etc.). Other trends in the future of e-commerce include: Robust customer journey and personalization. Artificial Intelligence Shopping. Digital currency. Overall, we must remember that e-commerce is still new in the big picture of the retail industry. The future has endless opportunities, but success and continuity usually depend on buyer preferences. Frequently asked questions about e-commerce What are the main features of the e-commerce website? Most customers find a few key features when evaluating e-commerce websites. This is a feature that enhances the overall online shopping experience in a highly functional and user-friendly manner. Easy-to-use features: Simple navigation tools, easy payment flow, etc.
Mobile compatibility: Works and works on all mobile devices. Discount codes and promotional features: Buyers can use discounts in the field. Security features: Payment processing is safe and reliable. Social Security: Verification from past customers and trusted sources User-generated content: Reviews, ratings and photos added to product ratings Is e-commerce secure? Yes, e-commerce is more secure than ever. With the help of multi-tier e-commerce security, monitored transactions, regular PCI scans, SSL authentication, protection against DoS / DDoS attacks, and PCI compliance solutions, e-commerce stores can be assured that buyers are making their online purchases 100% safe and secure What is e-commerce in the environment ? Ecommerce fulfillment encapsulates the entire process of receiving orders and delivering them to customers. This includes both operational and logistics steps that are part of this process, such as inventory management, warehouse organization, order supervision, and customer communications on packaging and shipping and order fulfillment. These aspects of the e-commerce store can be managed through outsourcing to order fulfillment services or through dropshipping. What is the e-commerce market? The e-commerce market is a type of post-sale site where a product or service is marketed by a market operator.
These include, for example, sales platforms such as Etsy, Amazon and eBay, which are often part of the OmniChannel sales strategy. What are some examples of popular online marketplaces? Amazon. Ebay. Alibaba. Etsy. Walmart. jet. overstock. Newegg. Rakuten
What is an e-commerce platform? The e-commerce platform is a software tool that allows retail builders to customize digital stores and manage their websites, sales and e-commerce operations from a central hub. What is a hosted ecommerce platform? The hosting e-commerce platform is not responsible for the individuals who can do it through third-party solutions, but rather, it handles all website hosting responsibilities. This complicates the management of e-commerce operating software and costs less than self-hosting. In a hosted e-commerce platform, the platform essentially handles updating, security, and other related tasks for shop owners leasing software.
I hope to be hosted in Korea too.