When you conduct business electronically through online selling mediums or channels, it’s called eCommerce. The functions of eCommerce involve everything from marketing the product or service and managing inventory and selling it to providing customer service and taking customer feedback via websites or online portals. In this mode of business, you can accept payment digitally by providing various online payment options.
You may opt for any online business model, including B2C, Gateway to Online Business where businesses sell directly to customers, B2B, which involves transactions between businesses, and more. However, there are many advantages and disadvantages of plunging into an eCommerce business.
As the need for such ventures is growing day by day, this article will help you understand the nitty-gritty of running an online business.
Significance of eCommerce in Today’s Market
There are about 8 billion people in the world currently, as per the 2024 global population statistics. Experts expect nearly 2.77 billion people to shop armenia phone number list online by 2025. Moreover, they say that the user penetration can reach up to 53.9% in 2024, and may hit 63.2% by 2028. This means, in the next 4 years, around 4.5 billion people will likely prefer the eCommerce market for their shopping needs.
Looking at the numbers above, it’s Gateway to Online Business clear that online businesses will continue to grow rapidly as the shopping trend shifts from brick-and-mortar stores to eCommerce ones. This trend caught fire during the Covid-19 pandemic and has only increased since then.
Customers love the ease of buying products online and the convenience that doorstep delivery offers. From buying fashion wear and daily-use products like groceries, skincare, cosmetics, kitchenware, etc. to bigger purchases like electronics and furniture, people are switching to ecommerce platforms. In fact, many services, including applying for visas, education for kids, courses, etc., are also available online. For example, online platforms like Gateway to Online Business Udemy offer several courses that cover the different needs of customers. Fitness apps like HealthifyMe provide their users with expert advice through trained dieticians and help them lead a healthy lifestyle.
Buyers don’t have to step out of the house to avail products or services nowadays, all thanks to the flourishing of eCommerce. At the same time, online business connects sellers with global customers and helps expand the business’s reach massively. As a result, eCommerce businesses are thriving and making huge profits.
Functions of eCommerce
Although the sales take place on the brand’s eCommerce website, you need to integrate several other functions to run a smooth online business. Here are the main functions of eCommerce:
Marketing
Marketing is an important aspect of any kind of business, be it a physical store or an eCommerce website. The foundation of good marketing is conducting in-depth research to develop a compelling brand strategy that helps your product sell to the masses. Digital marketing is one of the most impactful functions of eCommerce as it helps you promote your products or services to a wide audience, without the borders segregating and limiting you.
Marketing digitally involves activities like running online ads through Google or social media platforms, influencer marketing, emailing offers, and Gateway to Online Business many more. These activities communicate your brand identity well to the prospects and make them aware of your offerings. This will finally result in customer acquisition and conversions.
Supply Chain Management
Every product needs to move from your warehouse to your customer’s location. Customers expect lightning speed deliveries today, and for that, you need an efficient supply chain. Therefore, creating a systematic supply chain is another integral part of managing an eCommerce business.
The functions of eCommerce include effectively administering this flow of inventory from the seller to the buyer, ensuring the product safely reaches your customer in perfect condition. You can do this with the help of various efficient supply chain management software available in the market. They will help you monitor and maintain your inventory without errors and delays.
Financial Management
Finance is like the backbone of a business, without which it may collapse. Hence, financial management is among the crucial functions of eCommerce that strengthen your online business’s ecosystem. You need to manage and gate-keep your costs at every level of your business to make considerable profits.
A financial management system helps you hubspot is a powerful partner for anyone optimise your expenditure by tracking your sales performance. You get a layout of costs incurred on various operations like production, procurement, marketing, etc., and the revenue generated from the sales.
This helps you cut your costs wherever possible for better profit margins.
Advantages of Engaging in eCommerce Ventures
A physical store can be a costly affair and may have limited capacity to expand as compared to online ventures. Starting an eCommerce business has a bright side to it and may serve many added advantages:
Global Connectivity and Reach
An online business has no boundaries to it. You can expand and reach your prospective audience worldwide through your eCommerce store. It gives you the opportunity to tap into a wide customer base within and outside the country. You’re no albania business directory longer limited to one city or area or are dependent on a confined customer base.