It’s decided, you are going to open your online store because you are convinced that it is an incredible business opportunity. Consumers are increasingly turning to the Internet to shop and there are still many areas that have yet to be exploited. So far everything is clear. But…
What Kind of Online Store Should I Open? Is there one e-commerce model that is more relevant than another?
If you are just asking yourself these questions, then this post is for you. Today, we are going to explain all the different types of e-commerce that exist and which one best suits the business you plan to open. Let’s see which the store of your dreams is!
What exactly is an e-commerce or an online store?
We are going to use the definition we gave you in this post and in which we went through everything you need to consider before opening an online store.
An e-commerce is a business that manages collections and payments via electronic means, that is to say using the Internet as the main exchange platform.
So, therefore, you can consider that any website where you can buy something is e-commerce. And you will indeed be right. That said, for many people, an online store really goes beyond the traditional idea of selling physical products over the internet.
This is due to the fact that there are many different models of e-commerce. It is not the same if:
- You sell to individuals.
- Your business is moving to other businesses.
- You sell through Facebook.
- You have your own app.
- You offer products or rather services.
At first, this may all seem quite confusing to you, but you will see that it is not complicated.
What are the Different Types of E-commerce? Options And Alternatives.
There are endless types of online commerce; but, the question is to know which one is the best one for your project. This is precisely what we will cover now as we will go through all the models to discover the advantages and disadvantages of each of them.
E-commerce According to its Purpose:
In this first classification we will focus on the type of sale that is done through e-commerce. There are roughly two major groups:
A. Private or collective sales:
This is a group of users who organize themselves to obtain reductions by volume. The basic idea is that the higher the demand, the lower the price. This is the philosophy favored by Prevail. Prevail offers daily sales of major brands with huge discounts and exclusively for its customers (approximately 28 million worldwide).
This type of e-commerce is a direct heir to the traditional auction rooms. Gradually, he managed to find a place on the Internet. In addition to eBay, the classic example, there is Cat wiki, an international online auction house that publishes some pretty amazing and unique items every week.
eCommerce According to the Object of Sale:
We will now take a look at what is selling in the store. We have two options (themselves containing several variants):
A. Physical products:
These are the products that you can take with your hands. This option includes a very interesting alternative: drop shipping. The drop shipping involves selling the products of a supplier. While you take care of all the commercial part, the supplier takes care of stock management and shipping. Interested in this business model? Enter here to learn how to find suppliers.
B. Digital products:
A digital product is a file. It can be:
- A boss.
- A song or a sound.
- A plugin or any digital tool (not Seas).
- A photograph.
The great advantage of these over physical products is that it suffices to make one, and then reproduce them in large numbers. Manufacturing and distribution costs are very limited when compared to those of physical products.
Here we take it to the next level because it is no longer about selling a product, but a job. By Services, we mean:
- Training courses.
- Consulting services.
- Professional services…
If you are planning to eCommerce Startup Ideas a business like this, we strongly recommend that you get into affiliate marketing. You could offer third-party services in exchange for a commission for each sale, or you could pay a commission for each customer that comes to you through the affiliate.
3. eCommerce Depending on the Platform that Hosts your Business:
This classification focuses on the channel through which the final sale is made. We thus have:
A. The Website:
That is, the online store on a website. This is, in fact, the first possibility that comes to mind when we talk about electronic commerce. We can however distinguish:
- Shops selling exclusively online.
- Companies that have created their online channel from their offline business (such as Indicted with its Zara or Borski stores).
That said, there are other options, and that’s what we’ll see right away.
B. Social E-commerce:
With this name, it is quite easy to identify it. These are electronic businesses that rely on a social network such as Facebook, Twitter or YouTube.
Usually, this is a complementary sales channel, although many entrepreneurs prefer to test their products on Facebook first, and then decide to start building their “normal” online store.
Recommended Posts 9 Tips for Selling More on Social Media How to Gain Followers on Facebook
C. Mobile E-commerce:
If you are going to open an online business, it MUST be suitable for all types of screens. Responsive is no longer an optional choice, it is an obligation. There are more and more people shopping from a mobile phone and the trend is really on the rise. There is also the possibility of purchasing via apps.
4. eCommerce Adapted to Your Project:
The choice of CMS is one of the subjects that raise the most doubts. The final choice depends entirely on your project.
A. Open Source:
- Open code programs that allow creating your store in a much simpler way (although there are also several levels).
- WooCommerce (from Word Press): the simplest, but also offers the least choice. This program is suitable for you if you are going to sell very few products.
- PrestaShop: this CMS allows you to create a much more powerful online store, but it’s also a more complex program. If you have a lot of products, we advise you to start with PrestaShop.
- Magneto: the most complex option. This program is very powerful, but it requires programming knowledge (it also involves more money).
If you are planning on building your e-commerce with WordPress, here is a step-by-step guide to building your e-commerce with WordPress.
B. Software as a Service (Seas):
This is a type of cloud-based e-commerce. That is, instead of hosting your store on an Open Source platform, you can opt for a Seas provider.
This is software that allows you to have your store without having to install anything…
The supplier will take care of it! If you want to try this kind of e-commerce, check out Shopify.
If you don’t yet know which CMS to choose, this post will be very useful for you.
5. E-commerce According to the Recipient:
If there is something essential to sell it is… to have a buyer. Each business is headed for a customer (and if you don’t yet fully understand the characteristics of your customers, hurry and define your buyer persona: here’s how to do it). So, depending on the audience you are targeting, your business can be:
A. B2B (Business-to-Business):
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B. B2C (Business-to-Consumer):
These are companies that sell to individuals; the latter being the final consumers of the product or service. Once again, this is the typical example of e-commerce. Here you have a large catalog of examples.
C. C2B (Consumer-to-Business):
Most of the time, these are portals where individuals post a product or service to sell to businesses. The most classic examples are freelance job portals such as Freelancer or Twig, on which people apply for the purpose of being selected by companies looking for staff.
D. C2C (Consumer-to-Consumer):
These are platforms that make buying and selling between end consumers easier, just like eBay or any other used goods portal. Another example that has had great success in this category is BlaBlaCar.
E. C2B: Consumer to Business:
The main characteristic of this model is as follows: the customer determines the conditions of sale that meet his purchasing need. This is very common in the tourism industry. Consumers indicate where they want to go and how much they are willing to pay for flight and accommodation, and businesses contact them to make them an offer.
Now, Do You know what type of business you have (or What You are Going to Have)?
You certainly now have a million ideas in your head, but it’s still pretty hazy. Don’t worry because it’s normal. This is the reason why, before you get down to business, you should try to find out more about the market or sector you are targeting. And, we also advise you to carry out a small study of the companies which are already present there.
- What are they selling? What are they not selling?
- What sales channels do they use?
- What are their prices?
- Package shipping systems.
All of this will help you better understand your business and the potential problems you may encounter along the way. Lee tabby’s ester post. It will be very useful to you, be sure of it.