Everything about e-commerce in 2022

Beginning in the last third of the last century, the Internet gradually dominated our world, and human inventions flocked to it until we were finally able to facilitate one of the first human interactions in history. It is the process of trade, So, in this article, we will talk about E-Commerce Guide: Introduction for Beginners.

The ability to buy and sell products has become available to everyone with simple clicks on smart devices through online stores. To buy or sell as many products as you want, from groceries to giant machines, you can do it all through what we call e-commerce today.

The birth of e-commerce

E-commerce simply refers to the transactions in which individuals and businesses sell or purchase products over the Internet. E-commerce companies began to emerge in the early nineties. In 1992, (Book Stacks Unlimited) was launched to become the first online marketplace for book trading, initially based on phone calls, then in 1994 it turned into a website. Just a year later, Jeff Bezos launched the famous Amazon store, and Pierre Omidyar followed him with the launch of (AuctionWeb), which is known today as eBay.

And only 3 years after the launch of these stores, what we now know as PayPal, an electronic payment system, was considered the miracle that added the remaining link in the chain of the electronic purchase process, which is the remote payment process. Dozens of global websites and services were launched at the beginning of this century, which contributed to making e-commerce what it is today.

Expansion in the field of e-commerce is still going on, as hundreds of other websites and services have been launched that contribute to improving the trading and purchasing experience. Not to mention the developments that took place in the sites on the previous list, which contributed to making e-commerce one of the most growth areas in the world, with sales of more than 4 trillion dollars so far, and it is expected to exceed 5 trillion by 2022!

Types of e-commerce

E-commerce is divided into four main sections according to the relationship between the customer and the merchant, they can be classified as follows:

  • Business-to-consumer (B2C): It is the most widely used model in the world of e-commerce, as it is based on conducting business-to-consumer transactions. For example: When a buyer purchases a phone through an online store, this is a transaction between the company and the consumer.
  • From company to company (B2B): depends on the procedure of buying and selling between companies and each other, and transactions are often in the form of raw materials, equipment or wholesale goods. For example: transactions that occur between a manufacturer and a wholesaler.
  • Consumer-to-Consumer (C2C): Much like the first model, but the interactions are between consumers. Most of the major online stores offer the ability to do this now, so anyone can sign up for a seller account and view the products they want to sell on their account in the online store.
  • Consumer to Business (C2B): This is a traditional model in which a consumer typically provides a service to a business. For example: when your company purchases one of the electronic logo design services on the Khamsat website, then the corresponding model is (C2B).

As for the classification of e-commerce companies according to the supply of products and services, their types can be divided as follows:

  • Merchandise selling companies: The most popular type of online store, offering merchandise such as clothes, furniture and food. That is, it depends on the sale of physical goods that are sent to the consumer upon purchase, and one of the most famous examples is the Amazon store.
  • Service Providers: They sell the services you want over the Internet. A prime example is the SaaS business model, in which software is sold as subscription services and plans to pay either annually or monthly.
  • Digital product companies: Digital products differ from physical goods. They can be an e-book, a computer program, or a training course. For example: Hsoub Academy provides a number of high-quality training courses specialized in programming, and these courses are digital products.

What are the advantages of e-commerce?

It is clear that there are several differences between e-commerce and traditional commerce, each of them takes a different form to perform the same task. For traditional trading, the customer has to go to the shop himself and pay for the goods of his choice. In e-commerce, with one click you can buy products regardless of where they are located and where you are. E-Commerce Guide

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Each type of them has advantages and disadvantages, but with this e-commerce is now achieving unprecedented growth in annual sales percentages. It also keeps pace with development and keeps pace with technological changes; In an effort to provide an integrated experience for consumers in the simplest way, its most important features are as follows:

Buying speed

E-commerce allows consumers to shop from anywhere and at any time, it is not necessary for the consumer to go to another city to buy certain products, with just a few clicks he can get the products he wants effortlessly!

In addition to the availability of a large number of products available to buyers. Previously, the buyer was not able to purchase and buy products except locally made products, but now you can buy from all countries of the world, so the buyer will have a good range of products.

ease of shopping

One of the advantages of e-commerce is its availability around the clock, unlike traditional stores that adhere to certain operating hours. Moreover, the consumer is no longer limited only to the stores around him, he can buy any product he wants even if he is on the other side of the world. E-Commerce Guide

Online stores also provide some features that are not available in traditional stores. One of the most important is the feature of searching for products through the search bar and quick browsing in the eye for products on the same page, which saves the consumer the effort and trouble of searching for products in traditional stores.

Low costs and scalability

Establishing an online store does not require the entrepreneur to rent a place to display products or spend huge amounts of money on preparing it, but he can launch his online store at the lowest costs in the fastest time, due to his lower financial requirements compared to traditional stores. Expansion operations do not require the establishment of new branches in other places, but it has become possible for companies to make expansion leaps to distant geographic areas.

Online stores are not linked to a single geographical location, but can be visited from anywhere in the world, which means the ease of digital spread. Thanks to the spread of e-marketing and the spread of social media, expanding the market share has become easier. This makes e-commerce cost-effective in setting up, operating and expanding. E-Commerce Guide

It is clear that e-commerce is superior to traditional commerce in many respects, from saving time, effort and costs, to providing other advantages, such as: the availability of discount coupons and better offers, and we do not forget the response of e-commerce projects to inbound marketing mechanisms. Which represents most of the modern trends of marketers.

How do you get started in e-commerce?

In order to build a successful online store, you have to go through a great deal of learning and experience. Achieving a quick profit is just a false illusion. Successful people participate in e-commerce by following a clear business map that helps them enter the world of e-commerce and make a profit from it. Here are some tips to help you:

Study the feasibility of your e-commerce project

The feasibility study is an essential step when starting any project. Projects are not built on intuition, but rather on research and gathering the necessary information about the project. By doing a good feasibility study, you can; Knowing the feasibility of your project and the percentage of market acceptance of the project idea, and studying the material and technical aspects.

There are dozens of competing stores abroad, and in order to set up an online store and get a share of the market, you must determine the points that distinguish you from those stores, do you have the fastest delivery service? How about making your customer service better than your competition? Think about the loyalty programs that you can add to your customers, and try as much as possible to find several axes that distinguish them from your competitors to enhance your presence in front of the eyes of customers and to be able to attract them to you. E-Commerce Guide

Adopt an appropriate business model

E-commerce has different business models, and in order to know which one is right for you, you need to know what services you can provide. For example, you can go to the wholesale form if you own a warehouse. Thus, the types of e-commerce models vary depending on what capabilities you have.

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If you want to build a successful business, you must first build a unique brand, to do this you must choose assets for the brand that are interconnected with the personality of your online store, first choose the name and then start designing the visual identity of the store. You can use professional logo design services on the Fiverr platform.

Choose suitable products

The last thing you should think about when building an online store is trying to display a lot of categories and products thinking that they will generate more profits, so what will motivate the customer to buy from you instead of heading to major stores such as Souq and Amazon? The answer to the previous question lies in defining a specific category of products, distinguishing them and making sure that there is fair competition, as the absence of competition may mean that there is no market at all! E-Commerce Guide

Now, after you have determined the business model, the stage of choosing the market and the products that will be offered on the online store comes, and to do this correctly look for the best-selling products in other stores, there is no proof of the success of a particular product more than the presence of actual sales for it. If you manufacture or own your own products, you can go to potential customers and start collecting opinions about your products to know the most suitable products to display on the online store.

Calculate the costs of setting up an online store

The costs of setting up online stores vary depending on the plan and business model, but ultimately it depends on your budget, so you need to calculate the costs of setting up first before jumping into the operation that has other costs. The average costs for setting up an online store in 2020 range from $1,000 to $3,000. E-Commerce Guide

To know the exact budget required, calculate the costs of the feasibility study and visual identity design. Domain and hosting costs for your store for a year, and don’t forget to make sure you get an SSL certificate and add its costs if your hosting plan and domain doesn’t include professional email and security tools. In addition to including the costs of the programmer responsible for creating the online store, the costs of the content writer and digital marketer for your store.

Select suitable payment methods for e-commerce

Now that you have an excellent idea and a great look for your brand, it’s time to take a step back and create an operating plan and budget. Start by scheduling your project and calculating the monthly costs for it until you reach the breakeven point. Then plan other things like: delivery companies, number of employees, logistics, and marketing budget.

In order to be able to receive your profits from e-commerce, you must first determine how this happens, will you provide the customer with the opportunity to pay cash to the delivery representative upon receiving the product? Or will you rely on electronic payment methods, or a combination of the two? In this case, there are many electronic payment methods and you have to choose the one that suits your customers.

You can enable payment via electronic cards, digital wallets, mobile payment, and bank transfer. In all cases, try as much as possible to provide the easiest and most popular payment methods among your customers, as electronic payment methods may constitute an obstacle to some customers.

Create your own online store

There are several ways to create e-stores, either by fully programming them or relying on e-commerce platforms. In the first case, you will have the full ability to control your online store and build it however you want, although it will take you some time.

In the second case, which is to rely on platforms to create online stores, the best options are to create a site on WordPress and then install the WooCommerce extension, which allows converting the site into an online store that includes all aspects such as payment gateways, the ability to add your products, creating product categories, and other features. E-Commerce Guide

There is no doubt that the marketing process is one of the basics of making profits in e-commerce, as a perfect store will not return anything to you without starting to attract the right customers for it. There are many ways that you can follow to manage your online store like a professional, such as social media marketing, email marketing, and marketing by creating an attractive blog for your store, all of this and more you can find on the Fiverr website at the best costs.

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Why do some online stores fail?

We are always inspired by the success stories of successful stores, but no one looks at online stores that have failed due to some avoidable mistakes. In the following points, the most prominent reasons for the failure of online stores in order to avoid them during your journey in the world of e-commerce

Not posting contact information

One of the problems that many e-store owners face is not publishing clear communication information about their stores, which puts the store’s reliability at risk and prompts the customer to ask about how to communicate when there is a problem with his orders or even hesitation to make the purchase via e-commerce.

Choosing the wrong products

Many business owners when embarking on e-commerce believe that the products they have chosen are the absolute best, although the situation may be quite the opposite. Therefore, it is necessary for the business owner not to fall in love with his personal choices, and give time in the beginning to research and study the market to find the best product. E-Commerce Guide

In addition, many online stores fall into the trap of not having a clear distribution of products on them, such as: not organizing the selected categories, for example. It is normal in the case of displaying clothing products on the online store to classify them according to their differences, such as dividing them by names, and dividing them according to the age group, such as (children’s clothes, men’s clothes ..) after that, each category is divided into smaller categories in order to facilitate the customer’s search process.

Competition with market giants

Many online store owners get over excited at first, but it disappears after a while without news. Most of the time this is due to trying to display all product categories on the store without focusing on one category. This puts the new store in competition with well-known stores and brands, and as we mentioned in the section on creating an online store; Choosing specific categories of products and making reasonable sales in them is better than trying to display as many products as possible without result. E-Commerce Guide

lack of transparency

Well, it is not possible to create an online store without a clear return policy, no one will want to buy a product that he will not be able to return if it is damaged or damaged, as well as when solving a lot of problems that may affect products during storage and shipping, so having a clear return policy is important in the world E-commerce even if it brings you some losses.

Also, the discovery of new fees at the last step of the buying process is the biggest reason buyers back away from e-commerce purchases, as they feel angry that the store is treating them with a lack of transparency. Provide customers with shipping charges and added taxes up front on the product page; In order to avoid their anger in the last moments and the loss of the vast majority of them.

Create an online store that is not compatible with mobile

Society is moving more and more towards the use of mobile phones more than the use of computers. This is especially true when creating an online store, if you want to avoid this problem, you can hire a programmer to make the store mobile responsive, and then you will get more visits and a better experience.

Although the previous list includes the most important points of failure of Create an online store that is not compatible with mobile, the reasons for their failure may be due to many other factors such as: administrative failure, lack of product quality, lack of information, exaggeration in prices, lack of good marketing, and other reasons related to the method of operation and method of administration.

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