01 Oct What is E-commerce And Why Is It Important to Your Business?
The internet has opened up opportunities and created new paradigms for how business has to operate to remain competitive. One of the new possibilities made possible by the internet is e-commerce.
What is E-commerce?
E-commerce, short for “electronic commerce”, refers to buying and selling of products and services over the internet.
E-commerce arguably began in 1994 with the sale of a music CD between two friends over the internet. Today, it is growing at an annual rate of 23% (Source: BigCommerce). In 2017, electronic sales worldwide went up to US$2.3 trillion and are expected to reach up to US$4.88 trillion in 2021, (Source: Statista).
There are 4 types of e-commerce models:
Business to consumer (B2C)
B2C is the process of a business selling goods or services to a consumer.
Business to business (B2B)
B2B is the selling of products and services between two businesses.
Consumer to business (C2B)
C2B is the process of a consumer selling goods to a business or an institution.
Consumer to consumer (C2C)
This model refers to transactions between two consumers.
Top Reasons Why E-commerce is Important to Your Business
Customers are now making their purchasing decisions online
45% of the customers start reviewing and looking for what to shop online (Source: Nielsen). Therefore, it is time to showcase your products just a few clicks away from your customers by making use of e-commerce!
It exposes your brand to a bigger audience
Your potential customers have an easy access to your products and services all over the world because of the internet. Especially, by utilizing e-commerce together with digital marketing strategies such as SEO and social media, your online presence is inevitable.
It is convenient and easy for your customers
Certainly, the convenience of electronic commerce for your customers cannot be overstated. In fact, with e-commerce, your products and services are accessible 24/7 and can be viewed and be paid from anywhere and anytime through the internet, unlike any physical storefronts.
It will continue to grow
Electronic sales are expected to continually grow in the future and nothing can stop it! In particular, in South East Asia, an average user currently spends US$622 online per year and this is expected to grow to US$738 in 2021 (Source: eshopworld). Surely, that is a lot of consumers you’ll be missing out on if e-commerce is not a part of your business strategy.
Indeed, e-commerce is a great sales strategy as it opens up opportunities for your business and offers you an increase in online visibility, sales, and brand exposure. If you are interested in the opportunities it has to offer, message IH Digital now. IH Digital is a digital marketing agency in Singapore and has a presence across multiple countries in the region and in Greater China. We can help you build up your e-commerce and online marketing initiatives. Message us here.