Technology and the internet made a lot of things so much easier. Research is only a few clicks away and there’s no need to rent at a video store to watch past movies. At the same time, it’s through the internet and technology that the ecommerce industry came to life.
Ecommerce is a fast-growing industry that draws tons of attention from aspiring entrepreneurs. Given that the world of ecommerce is primarily online, many believe that it is easier to break into, especially for startups. But before you even plan on creating an ecommerce business, here are some must-know information and tips about the booming industry.
How Does Ecommerce Work?
Electronic commerce or ecommerce is the process of selling and buying goods or services online. It is a type of digital market where transactions are completed electronically. Consumers can find a selection of products or services through a variety of ecommerce websites.
Therefore, Ecommerce provides businesses with an avenue to sell their products and services with fewer limitations in terms of location. Buyers can come from different parts of the world since transactions occur online. The integral elements that comprise an ecommerce business include:
- Advertising strategies
- Website development
- Credit card processing
Types of Ecommerce Businesses
There are different types of Ecommerce businesses. This depends on the nature of transactions that the business does. With that, the most common ecommerce businesses models are:
- Business to Consumer (B2C)
- Business to Business (B2B)
- Direct to Consumer (D2C)
- Consumer to Consumer (C2C)
- Consumer to Business (C2B)
Competition in the Ecommerce World
The Ecommerce industry is open to anyone who dares to take the leap and start an online business. Taking this into consideration, there are millions of ecommerce businesses in the world that you are in constant competition with. As the industry continues to grow exponentially, so does the number of people who wants to take their chance in the online business world.
Digital shopping rocketed and continues to become one of the strongest and most powerful digital sectors in the world. The latest data estimates the number of ecommerce sites to be roughly 12 to 24 million. However, this number continues to grow day by day.
The number of online buyers globally is estimated at 20 billion. However, competition in the Ecommerce industry remains tough because of the sheer number of online businesses within the same market or niche.
Taking this into consideration, it is important for online businesses to stand out from other websites. Advertising and marketing are crucial in drawing traffic to the website. Some of the most effective digital marketing strategies include video content creation, blogs, and podcasts.
UI and UX in Ecommerce
The quality of an online experience on any website is often determined by two factors – UI and UX. The user interface (UI) is the software design that a user interacts with. It is ideally designed to be visually appealing but ultimately functional as well. A good UI contributes to the overall good user experience (UX).
A good user experience is also important in the world of online businesses. This is because the target market interacts with the business primarily through its website. According to a recent study, 62% of online buyers are less likely to become return customers because of negative UX. At the same time, 58% say that they would completely stop any transactions with a business with poor customer service and experience. Taking this into consideration, website UI and UX are crucial factors in Ecommerce customer retention.
Here are some tips on how to create a good UI and UX design:
- Make sure to clearly label icons, menus, buttons, and other features.
- Apply the principle of function over form.
- Keep a clean and simple UI.
- Minimize the steps needed to complete an action as much as possible.
- Use design to guide users how to use the interface.
If you want to know more about the ecommerce industry, Sidekicks is an on-demand virtual company and we’re eager to help visionaries and entrepreneurs like you. Get a free ebook and learn more about how we can help you by signing up for our newsletter. If you prefer something more personal, we also offer a free 30-minute consultation.