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Author
Merit Ronald

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E-commerce, often known as electronic commerce, is the exchange of products and services as well as the sending of money and data through an electronic network, most commonly the internet. These commercial dealings can be either B2B (business-to-business), B2C (business-to-consumer), C2C (consumer-to-consumer), or C2B.

Ecommerce is one of numerous ways that consumers buy and sell goods in the retail industry. Some businesses simply sell things online, but for many, e-commerce serves as a conduit of distribution as part of a larger business plan that also includes physical storefronts and other revenue sources. In either case, e-commerce enables startups, established enterprises, and multinational corporations to sell their goods globally.

E-business and e-commerce are frequently used interchangeably. The transactional procedures that make up online retail purchasing are also also referred to as e-tail.

Brief History

On August 11, 1994, a man used his website NetMarket, an American retail platform, to sell a CD by the band Sting to a friend, starting the history of e-commerce. This is the first instance of a customer making a purchase from a company through the World Wide Web, or "ecommerce" as it is now generally known.

Since then, internet shops and marketplaces have developed to make it simpler to find and buy things. Ecommerce has benefitted independent contractors, small enterprises, and big businesses alike by allowing them to offer their products and services on a scale that was not feasible with conventional offline shopping.

What are the types of ecommerce?

Ecommerce may take on as many shapes as there are online shopping options. The following are a few typical business models that affect the ecommerce industry:

1. Business to Consumer (B2C): When a business sells a good or service to an individual consumer (e.g. You buy a pair of shoes from an online retailer).
2. Business to Business (B2B): When a business sells a good or service to another business (e.g. A business sells software-as-a-service for other businesses to use)
3. Consumer to Consumer (C2C): When a consumer sells a good or service to another consumer (e.g. You sell your old furniture on eBay to another consumer).
4. Consumer to Business (C2B): When a consumer sells their own products or services to a business or organization (e.g. An influencer offers exposure to their online audience in exchange for a fee, or a photographer licenses their photo for a business to use).

Examples of ecommerce

E-commerce may take on a number of different shapes, encompassing various corporate and consumer transactional connections as well as the exchange of a range of goods.

1. Retail: The direct selling of a product by a company to a client, without the use of a middleman.
2. Wholesale: The selling of goods in quantity, sometimes to a merchant who subsequently offers them to customers directly.
3. Dropshipping: The selling of a good that has been produced and delivered to the customer by a different party.
4. Crowdfunding: The collection of money from consumers in advance of a product being available in order to raise the startup capital necessary to bring it to market.
5. Subscription: The automatic recurring purchase of a product or service on a regular basis until the subscriber chooses to cancel.
6. Physical products: Any actual items that need to be physically transported to consumers and inventories to be restocked.
7. Digital products: Downloadable digital goods, templates, and courses, or media that must be purchased for consumption or licensed for use.
8. Services: A skill or set of skills provided in exchange for compensation. The service provider’s time can be purchased for a fee.

What is an ecommerce website?

An e-commerce website serves as your online storefront. It makes the deal between a buyer and a seller easier. Your items are shown there while your online clients make their selections in a virtual environment. The product racks, salespeople, and cashier of your online commerce channel are represented by your website.

Businesses may develop their own e-commerce website on a dedicated domain, create a branded shop experience on a website like Dantty, or do it all for a multi-channel strategy.

Advantages and disadvantages of e-commerce

E-commerce has several advantages, including round-the-clock accessibility, quick access, a large range of products and services, ease of accessibility, and global reach.

• Availability. E-commerce sites are accessible 24/7, allowing users to explore and shop at any time, with the exception of outages and scheduled maintenance. Brick-and-mortar stores frequently have set hours of operation and occasionally close completely.
• Speed of access. While crowds can slow down customers in a physical store, e-commerce sites function rapidly due to concerns regarding computing and bandwidth on both the consumer device and the e-commerce site. The loading time of the product and shopping cart pages is under a second. An online purchase may be made in a few clicks and within five minutes.
• Broad accessibility "Earth's Biggest Bookstore" was Amazon's original tagline. It was able to make this assertion because it was an online store rather than a brick and mortar establishment that needed to stock every book on its shelves. With the use of e-commerce, businesses may provide a wide range of goods, which are subsequently sent from one or more warehouses when a customer makes a purchase. Customers will probably locate what they're looking for more easily.
• Easily accessible: Customers looking at a real store could have trouble finding a certain item. Website users may instantly search for a product using the site's search tool and explore product category pages in real time.
• Reach across the globe. Businesses with physical storefronts sell to clients who come into their locations. Businesses may sell to everyone who has access to the internet through e-commerce. E-commerce has the ability to increase a company's clientele.
• Lower price. The expenditures of having physical storefronts, such as rent, inventory, and cashiers, are avoided by pure play e-commerce enterprises. They may, however, incur shipping and warehousing expenses.
• Product suggestions and personalization. E-commerce sites can keep track of a visitor's browsing, searching, and purchasing habits. They may use this information to make customised product suggestions and learn more about target markets. Amazon product pages with sections labeled "Frequently bought together" and "Customers who viewed this item also viewed" are two examples.

The alleged downsides of e-commerce include poor customer service, the inability of consumers to see or touch a product before to purchasing, and the time it takes for product shipment.

• Client service is inadequate. Customers can ask a clerk, cashier, or store manager for assistance if they have a query or problem at a physical store. Customer service at an online store may be restricted: The website may only offer assistance during defined hours, and its online service choices may be challenging to use or unable to address a particular query.
• Inadequate client service. In a physical business, consumers can ask a clerk, cashier, or store manager for assistance if they have a query or problem. In an online store, customer service options may be limited. For example, the website may only offer assistance during defined hours, or its online service options may not address a particular query.
• Little product knowledge. Although looking at product photographs on a website can give you a decent idea of what it is like, it's not the same as actually using the object, such as when you play a guitar, evaluate the visual quality of a television, or try on clothes. Online shoppers may wind up purchasing goods that fall short of their expectations and need to be returned. In some circumstances, the cost of shipping a returned item to the merchant is borne by the consumer. The capacity of customers to inspect and test e-commerce goods is anticipated to increase with augmented reality technology.
• Waiting time: Customers purchase items at stores, pay for them, and then take them home. Customers who shop online must wait for the merchandise to be delivered to them. Shipping windows are getting smaller even while next-day and even same-day delivery are becoming more popular.
• Security. Hackers with the right skills may make websites that seem real and sell well-known items. Instead, the website either takes payment card information from clients or sends them bogus or copycat copies of such things. Even legitimate e-commerce websites have risks, particularly when users save their credit card details with the merchant to facilitate future transactions. Threat actors could take that credit card information if the retailer's website is breached. A retailer's reputation may be harmed as a result of a data breach.

E-commerce FAQ

How much does it cost to start a ecommerce?

Depending on the kind of business you're launching, the services and goods you want to offer, and the platform you decide to utilize, the cost to launch an online store might change. Typically, you should budget between a few hundred and several thousand dollars to launch an e-commerce firm.

Is e-commerce profitable?

E-commerce can be a highly successful business strategy, in fact. Some e-commerce companies may generate annual earnings of millions of dollars. It is crucial to remember that the e-commerce sector is extremely competitive, therefore success requires a lot of effort, commitment, and ingenuity.

Can you make a living off e-commerce?

Running an online store is a common source of income. Selling goods, offering services, or producing digital goods that you then sell on your own website are all ways that you might make money. A person can also launch an affiliate business, in which case they get paid a commission for sending clients to another company. Making enough money through e-commerce to support a livelihood is extremely doable with the appropriate approaches and some hard effort.

E-commerce platforms and vendors In Uganda

An e-commerce platform is a technology used to manage an e-commerce enterprise. E-commerce platform solutions range in size from small businesses to massive organizations. These e-commerce platforms include online marketplaces such as Dantty and Jumia, which involve only the creation of user accounts and little to no IT deployment.

Another e-commerce platform approach is SaaS, which allows store owners to subscribe to a service that allows them to rent space in a cloud-hosted service. This method eliminates the need for in-house development and on-premises infrastructure. Other e-commerce platforms include open source platforms that necessitate a hosting environment (cloud or on-premises) or manual setup and maintenance.

A few examples of e-commerce marketplace platforms in Uganda include the following:

1. Jumia
2. Dantty
3. Kikuu
4. Ubuy
5. Bazebo
6. Tily Express
7. Masikini
8. Ugamall
9. Duka Stores
10. Kilimall Uganda
11. Condala
12. Abijax

Examples of international e-commerce marketplace platforms include:

• Alibaba
• Amazon
• Chewy
• eBay
• Etsy
• Overstock
• Newegg
• Rakuten
• Walmart Marketplace
• Wayfair

Vendors offering e-commerce platform services for clients hosting their own online store sites include the following:

• BigCommerce
• Ecwid
• Magento
• Oracle NetSuite Commerce
• Salesforce Commerce Cloud (B2B and B2C options)
• Shopify
• Squarespace
• WooCommerce

What makes an ecommerce store successful?

Every successful online store has a few essential components. Concentrate on your items first and foremost if you want to succeed. Also take into account your brand messaging, your target market, and the user experience in your business. To ensure that customers are completely satisfied, you should also think about your fulfillment procedure. Let's examine each of these important elements in more depth.

Great products

Every successful ecommerce brand is built on solid, high-quality goods and services. Your product should address a problem or unmet client demand. Additionally, you need to charge a competitive price for it.

Your e-commerce firm will succeed or fail based on the value and cost of your items. Make use of market research to learn more about the products that your rivals are offering and the going rate for comparable goods.

A compelling brand story

Unique brands shine out, but it takes more than a great product to become a great brand. Communicate your company's mission and goals in order to get customers' attention.

Consider why your company has to exist. How will your items improve the lives of your customers? The answers to these questions should be conveyed through your branding.

Spend some time considering the appearance and feel of your brand. Find a simple, compelling approach to explain your company's origins and goal.

A target audience

Define your target audience to help attract loyal and enthusiastic customers. Who do you want to serve with your products? Aim your marketing efforts at that group.

When your company starts to take off, keep it going by thinking about the people who will be moved by your brand narrative. Spend your time and energy on an audience that will value your brand rather than going after customers who don't need your goods.

A smooth online experience

User-friendly online retailers are essential. Making a purchase is simple when a store's online experience is well-designed. Customers will quit their shopping carts before finishing the purchase if they are required to clear too many hurdles, which can hurt your sales.

The checkout procedure should be streamlined in order to keep the focus on the items at successful ecommerce sites. Eliminate any extra procedures, create a simple, intuitive user interface, and enjoy the positive feedback from satisfied clients.

Timely order fulfillment

Customers desire efficiency and quickness, particularly when purchasing online. Customers want their orders delivered undamaged and on time regardless of what you sell.

From the time a buyer clicks the "purchase" button until they unbox the product, fulfillment covers every stage of the customer experience. Even during their busiest seasons, successful ecommerce stores pay close attention to the fulfillment process and make sure they have adequate inventory on hand to fulfill their customers.

How to start your first ecommerce business

Do you have an ecommerce concept? Learn how to transition from contemplating an online store to establishing your business on Dantty. Gain access to over 45 million customers Online in Uganda, including thousands of members registered with Dantty.

Register To Sell Your Products

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