Given the extraordinary potential of the internet today, there has never been a better time in history to... open an online business. And because, however, the concept of e-Commerce is relatively new, we suggest you learn a little about it before you jump into this adventure. You will definitely make mistakes, but we believe that if you read the following lines you will be able to avoid at least some of them.
Okay, let's see what an eCommerce business entails!
We'll start at the beginning, more precisely with the term "eCommerce". The definition of eCommerce goes something like this: electronic commerce, meaning any process of buying and selling products or services using electronic means, for example, using mobile applications and the internet.
In addition, by e-commerce we mean both online commerce and any form of electronic transaction. This term is used for any type of business or commercial transaction that involves the transfer of information using the Internet. It is no wonder that it represents one of the most important growth engines for the Internet. It is expected that in the future traditional and electronic commerce will merge, as more and more businesses seem to move their activity exclusively to the online environment.
Before eCommerce platforms, there was simply a concept. It was first popularized in 1979 by Michael Aldrich, an English entrepreneur who connected a television to a computer. This system was basically the precursor to teleshopping.
Shortly thereafter, in 1982, the first eCommerce company was founded, called Boston Computer Exchange. This was basically an online marketplace where you could sell your used computer.
The first online marketplace was Book Stacks Unlimited in 1992, and three years later Amazon made history.
The first ever recorded transaction was made in 1994 by Phil Brandenberger. It was the first time encryption technology was used to facilitate an online transaction. In the mid-1990s, giants Amazon and Alibaba changed the face of the retail industry.
Photo source: https://unsplash.com/photos/wcWN29NufMQ
Is it worth opening an eCommerce business in Romania? We'll leave it to you to draw a conclusion after we present you with the list of advantages and disadvantages.
| eCommerce business advantages | Disadvantages of eCommerce business |
| You have access to global markets | Customer support can have certain limitations, especially if you don't implement it properly or don't have enough employees. |
| Your business can operate 24/7 | The customer cannot test the product in the store, so the return rate will be slightly higher. |
| Reduced costs compared to traditional stores | Long waiting time to receive the product |
| You can automatically manage product inventory | Poor security of certain eCommerce sites |
| With the help of information obtained from databases that you created from customer interactions, you can do precision marketing | |
| You reduce costs because you sell directly to customers and you no longer need physical stores | |
| You can test products, brands or services with minimal upfront investment | |
| You can offer self-service options for customers, so you can keep a small sales staff. | |
| You can scale your business quickly and with some low costs, especially if you benefit from IT services suitable | |
| You can personalize interactions with customers and over time you can recommend products to their taste |
What do you say, is it worth the investment?
Not all eCommerce businesses do the same thing or target the same audience. So, there are three main types of merchants:
In addition, depending on the target audience, there are several types of eCommerce:
Although, in theory, anyone can start an eCommerce business, the process is not for everyone. So, we would like to talk a little about the challenges you may encounter along the way.
The first obstacle you will have to overcome is the potential buyer's lack of trust in your business. How can they know that they can trust your company, your products, or the payment system on your website? The safest option will be to use reliable payment solutions and verification systems that ensure the integrity of the information that customers enter on the site.
Then, technical issues come in. What do you do if there are problems with the site, problems related to the way it was coded? How do you design an image on the site if you have no knowledge of web design? Surround yourself with specialists and turn to IT solutions of quality.
If you already have a website that is currently not generating sales, you will need to consider optimization services website.
Not to mention the competition, the market is almost saturated. So, you'll need something special to stand out.
Without them, online commerce simply couldn't exist. You can use these tools to website creation eCommerce without too much hassle. The most popular ones are Shopify, Magento, BIgCommerce or WooCommerce.
These services have a friendly pricing plan, provide you with all the tools you need to develop a website from scratch, and offer countless scaling options as your business grows. Which one is right for your business? It depends. Shopify is very intuitive, WooCommerce is cheaper, Magento allows you a lot of customization options, and Big Commerce is suitable for businesses that grow very quickly. What do you need?
Selling only through your own online store can limit your sales, at least at first. This gives you the option to expand into other eCommerce markets. We advise you to choose the option of paying a commission on each transaction. You could collaborate with one or all of the platforms below:
Do you need social media for your eCommerce business? No. But you do need social media to increase your sales. Social platforms can help you advertise and create a brand image that will later be easily recognizable. Basically, a customer can buy directly from your social media page or be redirected to your online store.
Use a platform like Facebook, Pinterest, Instagram or Twitter to showcase your products and/or services in the form of pictures or videos. The consumer will discover the product and place an order on your website if it catches their attention.
We're going to assume that you were either already determined when you found this article, or you liked it enough to convince you to start your own business. Whatever the case, we also want to offer you some tips on how to set up an eCommerce website.
Here are the steps I suggest you follow:
Now you have the basic information. You can pick up the rest as you go!