E-Commerce

Digital,
LESSON 2
Markets,
Digital Goods
E-Commerce Digital, Markets, Digital Goods

What is E-Commerce?
E-Commerce Digital, Markets, Digital Goods

What is E-Commerce?

E-commerce (or Electronic Commerce) is the

process of selling goods and services over the
internet. Customers come to the website or
online marketplace and purchase products
using electronic payments. Upon receiving the
money, the merchant ships the goods or
provides the service.
E-Commerce Digital, Markets, Digital Goods

How does
e-commerce work?
E-Commerce Digital, Markets, Digital Goods

How does
e-commerce work?
E-commerce works on the same principles
as a physical store. Customers come into
your e commerce store, browse products
and make a purchase. The big difference is
they don't have to get off their couch to do
so, and your customer base isn't limited to a
specific geographic area or region.
E-Commerce Digital, Markets, Digital Goods

How does e-commerce work?

Process operation on e-commerce website:

Accept the order. The customer places an

order on your website or e-commerce
platform. You'll be alerted that an order was
placed
E-Commerce Digital, Markets, Digital Goods

How does e-commerce work?

Process operation on e-commerce website:

Process the order. Next, the payment is

processed, the sale is logged, and the
order is marked complete. Payment
transactions are usually processed
through what is known as a payment
gateway; think of it as the online
equivalent of your cash register.
E-Commerce Digital, Markets, Digital Goods

How does e-commerce work?

Process operation on e-commerce website:

Ship the order. The last step in the

e-commerce process is shipment.
You have to ensure prompt delivery
if you want repeat customers.
Thanks to Amazon, consumers are
used to getting items within two
days.
E-Commerce Digital, Markets, Digital Goods

What features should an

e-commerce site have?
E-Commerce Digital, Markets, Digital Goods

What features should an

e-commerce site have?

To be successful at electronic
commerce, you should have a
comprehensive list of the
products and services you sell
on your website or marketplace
page. The online shop should be
easy to navigate, user friendly
and aesthetically appealing
E-Commerce Digital, Markets, Digital Goods

What features should an

e-commerce site have?

It should also be optimized for

mobile devices.
E-Commerce Digital, Markets, Digital Goods

Types of E-Commerce Business Models

E-Commerce Digital, Markets, Digital Goods

Types of E-Commerce Business Models

Business to Consumer (B2C)

As the most popular e-commerce model,
this type of business sells products or
services directly to the individual
consumer. B2C e-commerce is the most
common online business type and covers
a broad array of products, from clothing to
entertainment.
E-Commerce Digital, Markets, Digital Goods

Types of E-Commerce Business Models

Business to Business (B2B)

When a business sells products or services
to another business online, it is
considered B2B e-commerce. These
businesses might sell items such as office
supplies, furniture and equipment. They
also provide online business solutions,
such as document-signing software and
other cloud-based services
E-Commerce Digital, Markets, Digital Goods

Types of E-Commerce Business Models

Direct to Consumer (D2C)

Direct to consumer e-commerce is the newest
model of ecommerce, and trends within this
category are continually changing. D2C means
that a brand is selling directly to their end
customer without going through a retailer,
distributor, or wholesaler. Subscriptions are a
popular D2C item, and social selling via
platforms like InstaGram, Pinterest, Facebook,
SnapChat, etc. are popular platforms for direct
to consumer sales
E-Commerce Digital, Markets, Digital Goods

Types of E-Commerce Business Models

Consumer to Consumer (C2C)

C2C e-commerce refers to the sale of
a good or service to another
consumer. Consumer to consumer
sales take place on platforms like
eBay, Etsy, Fivver, etc. s
E-Commerce Digital, Markets, Digital Goods

Types of E-Commerce Business Models

Consumer to Business (C2B)

Consumer to business is when an
individual sells their services or
products to a business organization.
C2B encompasses influencers offering
exposure, photographers,
consultants, freelance writers, etc.
E-Commerce Digital, Markets, Digital Goods

Examples of
E-Commerce Business
E-Commerce Digital, Markets, Digital Goods

Examples of E-Commerce Business

Online retail: Online retail is a type of

eCommerce whereby a business sells goods or
services directly to consumers from a website.
Amazon is the crowned champion of retail in
the e-commerce world, but you don't have to
be the next Amazon to succeed in this space.
You can use resources like Amazon and eBay
partnerships to get an online store off the
ground.
E-Commerce Digital, Markets, Digital Goods

Examples of E-Commerce Business

Wholesale: Wholesaling is the act of buying

goods in bulk from a manufacturer at a
discounted price . One of the best-known
wholesale e-commerce sites is Alibaba. While
Alibaba does get into B2C sales as well, they
have established themselves as a global giant
in the B2B space. Businesses all over the world
get their goods from Alibaba
E-Commerce Digital, Markets, Digital Goods

Examples of E-Commerce Business

Dropshipping: is where another company

handles your product for you. You create the
online space where customers can browse and
place orders, but the dropshipping company
takes care of the logistics of delivering the
goods to the customer. While Amazon does
cross into this space, the No. 1 dropshipping
company right now is Shopify. You can have a
working storefront on Shopify in a matter of
hours.
E-Commerce Digital, Markets, Digital Goods

Examples of E-Commerce Business

Subscription: Subscription companies

come in many shapes and sizes. The
subscription can be for automated
replenishment of goods, like the Dollar
Shave Club. They can be for curation, like
with a wine of the month club. The
subscription can also grant access to a
service. Netflix is easily the best example
of this type of subscription model.
E-Commerce Digital, Markets, Digital Goods

Examples of E-Commerce Business

Digital products: This stores do not offer

physical, tangible goods. They offer
digital products, which should not be
confused with services. The most
common digital product is software.
Microsoft is one of the most prolific
digital product companies.
E-Commerce Digital, Markets, Digital Goods

Examples of E-Commerce Business

Physical products: is product which can

be touched physically and can be shipped
to customer after selling it On Etsy,
people make physical objects that they
then sell and personally ship. You can see
how this is different from retail or
dropshipping. A physical products e-
commerce business will make the things
they sell.
E-Commerce Digital, Markets, Digital Goods

Examples of E-Commerce Business

Services: Services are some of the

easiest things to sell online. E-
commerce services include tax and
accounting, healthcare, legal
services, and just about anything else
imaginable.
E-Commerce Digital, Markets, Digital Goods

Building an Effective E-commerce Website

E-Commerce Digital, Markets, Digital Goods

Building an Effective E-commerce Website

Establish a plan
After covering the basics—like coming up
with a name for your brand as well as
identifying your products and suppliers—the
first thing you’ll want to do is identify your
store’s Unique Selling Propositions (USPs).

• What makes you different?

• Why should shoppers choose you?
E-Commerce Digital, Markets, Digital Goods

Building an Effective E-commerce Website

Build a website You’ll want to make sure that

your visitors have good user experience
across all devices while being secure and
responsive. Be sure to choose the right
Content Management System (CMS) that’s
compatible with e-commerce features you
want to use. Additionally, find one that offers
a UI and functionality that you’re comfortable
with.
E-Commerce Digital, Markets, Digital Goods

Building an Effective E-commerce Website

Add e-commerce features At this point, you’ll

want to decide on what e-commerce features
you want your store to have, like product
listings, shopping carts, and customer service
portals. Find a reliable payment gateway
partner, and when it comes to payment
options, select the methods that would best
serve your business and its customers.
E-Commerce Digital, Markets, Digital Goods

Building an Effective E-commerce Website

Optimize for conversions Conversion rate

optimization (CRO) is essential for boosting
your online conversions, sales, and business
growth. Two key ways to get insights for
optimization are A/B testing and multivariate
testing. You can test different elements on
your site, such as your web copy, layout,
design, headline, images, and more,
uncovering the best mix of page elements
that drives users to convert.
E-Commerce Digital, Markets, Digital Goods

Building an Effective E-commerce Website

Market your e-commerce business Much like

any other website, you need to market your e-
commerce store to gain exposure. You can dive
into content marketing, social media, pay-per-
click (PPC), or even collaborate with relevant
influencers to boost your online visibility.
Whatever marketing channels you decide to go
with, be sure to continuously measure, evaluate,
and improve your strategies to maximize your
chances of success.
E-Commerce Digital, Markets, Digital Goods

Building an Effective E-commerce Website

Track, Analyze and Improve As with brick

and mortar businesses, it’s important that
you strategically monitor, review, and
adjust processes to better understand and
serve your customers. Check your web
analytics to see how users behave on your
website, who they are, what motivates
them to purchase, and so on.
E-Commerce Digital, Markets, Digital Goods

E-Commerce Marketing Strategies

E-Commerce Digital, Markets, Digital Goods

E-Commerce Marketing Strategies

E-commerce marketing is all about

building awareness and guiding online
shoppers in your direction when they’re
ready to make a purchase. These
marketing strategies focuses on helping
users find you, converting them into
customers, and improving website
usability and after-sales campaigns to
encourage repeat customers.