The Brave New World of Online Business and E-commerce
The world of business is still adjusting to COVID-19. Social distancing regulations have forced even more people to do shopping online. As a consequence, small businesses have had to adjust, virtually overnight, to less accustomed ways of conducting business. The major change—more businesses moving into E-commerce to stay afloat.
The good news? Those businesses that have recently entered into E-commerce have flourished greatly. In 2020, more than 2 billion people have resorted to online shopping to shop for goods or services. This translates into a total of $4.2 trillion in worldwide sales. If you are a small business owner looking to enter the E-commerce world—there is no better time than now.
This article has all the information you need to move your business online. For a start, it is important to gain an understanding of the various existing E-commerce business models. They are as follows:
Business to Consumer (B2C)
B2C is the most common E-commerce business model. Any time a consumer purchases a product or service from an online webstore, it is done using the Business to Consumer model. This model is everywhere from Amazon and Target to services like Netflix and Uber. The consumer finds a product or service from an online webstore and clicks buy. Done!
Business to Business (B2B)
The B2B model means that a business sells goods or services to another business. Typically, this model is for businesses that want to buy products in bulk and then resell them to the consumer. These kinds of transactions typically have longer sale cycles, but with a higher chance for repeat transactions.
Consumer to Business (C2B)
C2B platforms enable individuals to market their goods or services to other businesses. The consumer-to-business model is used if a business needs somebody with a niche skillset. Businesses can find individuals on platforms like Fiverr or Freelancer.
Consumer to Consumer (C2C)
C2C businesses are often referred to as online marketplace. Consumer- to- The most notable examples of consumer marketplaces are eBay and Craigslist. With this type of E-commerce, consumers post listings online and allow the website to make revenue from transaction and listing fees.
Now that you have some basic lingo under your belt, let’s look at the big picture of why your business should have an online web store.
9 Top Reasons why your business should have an E-Commerce website
An Edge Over Your Competition
At this point, most businesses have their own E-commerce website. The world of E-commerce gives your business access to the 21st-century tools unavailable to brick-and-mortar establishments and allows your business to innovate to stay ahead of the competition.
Increased Sales and Revenue
Businesses with 50% of their sales generated from an E-commerce web store performed better than other businesses during lockdown periods. Around 40% of businesses with an online platform saw increases in their revenue. As more consumers opt for online purchasing over in-store, these numbers are expected to grow.
Cheaper Than a Street-Side Business
Online retail platforms don’t have the same expenses as a brick-and-mortar storefront. Expenses from maintaining a building, paying utilities, and cleaning are items that can be eliminated on monthly budget sheets.
Improved Product Visibility and Buyer Engagement
Building an online retail website will give your business access to audience engagement tools brick-and-mortar establishments don’t have. Inbound marketing has turned product visibility and audience engagement into a science. If leveraged correctly, your online webstore and associated advertising will put your product in front of the largest pool of potential buyers.
Running Your Business From Anywhere
The ease and benefits from remote work have been fully demonstrated over the past year. Of the 10,000 surveyed workers in the US, 23% said that they would be willing to take a 10% pay cut if that meant they could work from home permanently. According to the same poll, working remotely saves time and increases productivity. But the real benefit is the freedom business owners are afforded. Your E-commerce web store is located anywhere you connect to the internet.
The Store Hours are 24/7, 365 Days a Year
Aside from the geographical independence that online retail websites give businesses, your online store never has to close for the night. Your business becomes accessible 24/7.
Easy to Measure Growth
With Inbound Marketing tools, reports and data are calculated and saved in real time. Measuring key performance indicators (KPIs) has never been easier or more efficient. Reports become a breeze.
More Convenience For Your Customers
All business owners know that customer satisfaction is what drives return shoppers. With an online web store, you have control over alternate shipping methods, payment processing, and fast customer engagement.
Introducing the Latest Technologies to Your Processes
You will be able to leverage Artificial Intelligence and Machine Learning for image detection and voice recognition solutions, 24/7 chatbot support, personalized recommendations, and custom offerings, as well as fraud detection solutions, to keep your website safe.
Website builders: the easiest ways to build an E-commerce website
Website builders have come a long way. You can find easy-to-use interfaces and unending options for customization. Almost anyone can sit down and start building a website. You just need to choose which E-commerce website builder you want to use.
You’ve likely seen advertisements for Wix, Shopify, Squarespace or WordPress.
WordPress is an industry-standard. It’s web hosting services are used by large corporations like Bloomberg and Facebook. WordPress is a powerful tool but has a learning curve when compared to other website builders like Wix.
Wix has a wonderful and easy-to-use point-and-click interface that lends itself to fast customization and edits.
But which website builder is best for creating an E-commerce website to sell goods and services? You can ask the internet and the results often point to Shopify. Shopify is an easy one-stop-shop where your business can list products without the need for coding. It offers competitive pricing plans to host your online web store and streamlines the buying process for your customer from beginning to end.
Regardless of which platform you choose to build your own E-commerce website, buy your domain name. The domain name is the first thing your customers see before entering your online shop and using a pre-assigned domain name simply doesn’t look good. It is worth it for your business to purchase your custom domain.
Marketplace Platforms Overview
The second option to start your own E-commerce website is to use one of the top online marketplaces. Compared with website builders, you will get a place to sell your products and this place is specifically built for this purpose. For a monthly fee or percentage of your sales, you will get a set of tools to set up a store and sell your products online and in no time. One of the other things worth mentioning is the fact that online marketplaces often already have a customer base and a brand name. The giants like Amazon or eBay have already established themselves in the eyes of the customers:
Additionally, with the largest online E-commerce platforms you will have access to powerful programs for marketing and boosting your sales. Programs like Google, Shopping Actions, Amazon Advertising or eBay Promotions Manager will make marketing efforts easier and raise the odds of your store becoming a success. Here is a short list of the top online marketplaces for you to consider:
Read also: How to Build a Marketplace Platform
One of the world’s biggest online marketplaces has over 200 million subscribers, as was reported in the letter to stakeholders in 2020. Amazon Prime users spend an average of $1,400 a year, while regular users spend $600. This large client base is the biggest advantage of the platform, so all you have to do is choose the best selling plan for your business.
eBay is the second biggest player in the world of online marketplaces. With 187 million active users worldwide, eBay is probably the best place to buy electronics. However, there are a lot of popular categories. It has only two primary models for selling: insertion fee or selling fee per listing.
Walmart’s invite-only marketplace uses commission, monthly and annual fees.
This marketplace is the best place to go for handmade or vintage items and craft supplies. Operating for more than 15 years, Etsy has built a strong reputation in this niche.
This multinational technology company offers a number of websites and services that will help your business reach a new global audience.
Probably the biggest drawback of building custom online marketplaces is the lack of customization. You will get only the features that the vendor will offer you, and nothing else. It can work for a small business or a low budget. However, if you want to introduce something new to the market and maintain complete control over your store, you should probably consider building your own custom E-commerce website.
“E-commerce isn’t the cherry on the cake, it’s the new cake”
—Jean Paul Ago, CEO L’Oreal
The advantages of building your own custom online shop
The power of customization cannot be overstated. Having control over how your site functions is what makes building your own E-commerce store impactful for your customers. You have the power to create a visually pleasing and easy-to-navigate web store limited only by your imagination.
Controllable List of Features
Your custom online shop can have already existing features and at the same time, you can introduce entirely new functionality and become a market innovator. A custom solution allows you to provide maximum convenience and the best user experience for your customers.
Unique Shipping Options
Selling objects that are of a consistent size and weight with no special considerations is one thing. But the greater variety of products your E-commerce store offers, the more diverse your customers’ shipping concerns will be. In turn, a custom E-commerce solution will seem even more appealing. For one, your customers may want the choice of different delivery services, whether that’s FedEx, UPS, DHL or the U.S. Postal Service.
Your business may sell products that require adherence to some defined rules and regulations that limit how your product can be handled, stored, or shipped. An example would be perishable food products that require cold-chain logistics, or liquids and gases that need special containers. Since each carrier has their own guidelines for such products, your customer needs to be informed of the shipping nuances. If this is the case, then a custom E-commerce solution is the best choice for you.
Flexibility With Third-Party Integrations
Custom online web stores can host a variety of third-party applications. This allows your business to integrate separate features into your website that can be utilized by your customers.
The Highest Level of Security
A custom E-commerce website gives you full control of security functions. Business owners have the responsibility of keeping their customer’s data safe and secure.
Internet security is constantly adapting to new cyber threats. Machine Learning-powered fraud prevention and fraud detection solutions are among the available options that can protect your website. With an E-commerce website you can leverage such technological innovations and focus on the business side of your company—leaving security to the professionals.
Using any Payment Processor You Want
Having the choice of any payment processor on your website benefits your business and your customer. You can use any payment method that you need. To explain in more detail, we have a whole separate post on this topic.
Prices and features comparison: Website Builders vs Marketplace Platforms vs Custom Development
The construction of your E-commerce website depends heavily on your budget constraints, time, and the desired list of features. With a trusted and experienced software development partner, custom development can be the most secure and flexible way to build a web store. Here is a quick comparison between the most popular ways to create your own E-commerce website:
|Website Builders||Marketplace Platforms||Custom Development|
|Opportunity to Innovate||No||No||Yes|
|Required IT Expertise||Medium||Low||High|
|Level of Security||Low||Low||High|
|Timeline||2-12 Months||Less Than 1 Day||3-9+ Months|
|Prices||$350-$200,000+||Monthly or Per Item Fees||$60,000-$300,000+|
The market prices are approximate and every case is unique, so it is wise to seek consultation so you know that you are getting the most out of your choice.
The essential steps to build a custom E-commerce website from the ground up
The process of building a custom E-Commerce website may vary but in most situations you will probably have a process that includes the following steps:
A great move to begin your journey to success is to conduct market research to identify the main competitors that offer similar products and services.
Setting Business Goals
After getting to know your competition, establish your pricing strategy and calculate the required minimal revenue targets. Calculate any additional expenses you may encounter and anticipate the pitfalls that could influence your bottom line.
Creating Unique Selling Proposition
You need to know how your online store will be different from the competitors and what additional value it will bring to your customers. Setting a series of brainstorming sessions could help you craft a USP and reinforce your initial idea.
It can be daunting to find a reliable software development partner, capable of delivering high-quality custom E-commerce development services. Run through the list of any possible options while considering your budget and expectations to pick the best one with a proven track record and highest-rated reviews. Additionally, you will need to partner with logistic companies to deliver the best customer service possible.
Getting All Paperwork Done
You need to be aware of all possible laws and regulations in the area you are planning to operate in. To avoid legal issues, you should get a consultation and guidance from an experienced law firm.
Picking Free Domain Name, Web Hosting Provider, and Payment Processor
A catchy and truly unique name is one of the key factors that will help you break through the market. Along with the name, you can choose a web hosting provider and decide on the payment options.
Define the Features You Need
Once you have a clear and Unique Selling Proposition, deciding on the initial features and possible future upgrades for your web E-commerce store will be a breeze.
Plan Scalable Project Architecture
Scalability is one of the key benefits of building a custom E-commerce website. Discuss with your software development partner how to grow your project in the future.
Build a UI/UX Design
The other important factor is the way your website will actually look. It must not only be convenient and user-friendly, but also attractive and memorable.
Set Up a Plan For Marketing Activities
The main determinant of a website’s success? Proper marketing activities. Before your development team builds an online store, your marketing team must have a plan that includes SEO, advertisement, personalized outreach, engagement with media, and a set of discounts and promotions.
Following the previous steps with a proficient development team, the entire development process is smooth and easy. Just watch your dream finally coming to life!
Test, Deploy and Launch Your Website
After the development phase is complete, quality assurance experts are a must. Before launching your website, make sure you did everything possible to make your E-Commerce website bug-free.
Get Feedback From Customers and Make Adjustments
After launch, your customers will provide feedback on all the necessary changes that should be made to make your online store better. Just listen closely and react fast!
Continuous Support and Improvements
You can continue your business relationship with your software development partner by making ongoing development agreements for additional support and improvements to your store. If you don’t plan to improve your store and add new features, you still need to hire at least one expert on a part-time basis for maintenance purposes.
ARE YOU INTERESTED IN HIRING A DEDICATED DEVELOPMENT TEAM?
Learn all the details on Dedicated Development Team model for software development projectsRead the article
The pitfalls in building a custom E-commerce website
Now that you know how to build an E-commerce website step by step, let’s take a look at the most common mistakes that businesses tend to make in this process.
Reinventing the Wheel
Study your competitors and their existing solutions. With a custom project you are always in danger of wasting your time and budget on inventing features that have already been tried, tested, and become standard. A team of experts can help you analyze your project and inform you on the parts of it that actually need to be built from the ground up. For example, things like promotional campaigns or referral programs could be copied from the market leaders.
Just like with any custom project, it is easy to underestimate your budget. Be ready that your expenses will most likely be higher than you initially expected. Prioritize the most important features of your website.
Not Enough Attention to Marketing
As mentioned previously, marketing strategy is a key element of starting your own E-commerce website. But sometimes the basic moves are not enough to grab the attention of potential customers and, ultimately, find a place in the market. Make an additional effort to come up with some unique elements in your marketing campaign that will make your store stand out!
Our expertise in building E-commerce websites
SPD Group has over 15 years of experience delivering research, technology consulting and software product development services to our partners. Leveraging such technologies as Artificial Intelligence, Machine Learning, the Internet of Things, and Cloud Computing we aim to deliver cutting-edge solutions in each our project. As for custom E-commerce web development, we’ve been involved in building from scratch and expanding marketplace startups for well over a decade.
In one of our recent cases, we created not simply a custom E-commerce store, but a powerful white-label B2B and B2C E-Commerce platform that has gained recognition all over the world. Our platform combines the advantages of a marketplace and those of a personalized website to offer a variety of features, all thanks to an advanced white-label customization engine.
On our platform, sellers are able to use multiple types of back-end functionality that are not available on website builders or online marketplaces like Amazon or eBay. Additionally, we are proud to say that we have created a complex payment framework that supports over 20 payment systems. We were able to connect all three payment gateway integration methods: Direct Post, Hosted Payment Gateways, and Integrated methods for different E-commerce payment systems for business. Each method operates differently. This was our initial challenge. Additionally, we have successfully implemented 3-D Security protocols for credit and debit transactions on both the mobile and online platforms.
Some other important features this platform includes are flexible reporting and sales analytics, single sign-on integration with a client website, fraud detection and prevention functionality, and, last but not least, a variety of customer loyalty programs and promotional campaigns.
Eventually, this project was acquired by a bigger company and we were able to grow our team to over 100 experts. This became possible due to the type of partnerships we had created with our clients. We employed the Dedicated Development team model, and in this more recent iteration of the project, we not only worked on the features and other aspects of the custom E-commerce store, but also provided expertise on the unification and some additional platform consolidation requirements that had been put in place by the new owner.
How to Set Up Your Own E-commerce Website?
You have three main options: to use a website builder, connect with an online marketplace platform, or build your own one from the ground up. Each of these options has its own benefits and drawbacks. The choice largely depends on your budget and your desired list of features.
Should I Build an E-commerce Site From Scratch?
You should build your own online store if you require a specific list of unique features, multiple payment methods, and maximum security.
How Long Does it Take to Create a Website From Scratch?
It is safe to assume that you need at least three months to launch a project with a limited list of features. But as every scenario is unique, it requires an individual approach.
How Much Does it Cost to Create a Custom E-commerce Website From Scratch?
The price tag starts from $60,000, at least it is currently the market average. Once again, depending on the list of features and timeline, the price can vary widely, rising to $300,000 and beyond. Keep in mind that the eventual cost of a project is usually higher than its initial estimate.
In 2022, it is hard to imagine a business that is not represented online. A cutting-edge E-commerce website can still help your organization stand out from the competition. Any of the three options that can be used to create it: website builders, marketplace platforms, or custom websites can work better than the other two in a specific situation. However, if you have a desire to innovate and use your online store as a tangible boost, custom software development is the way to go. Find a reliable software development company with a proven track record that will be able to share your vision in creating something that will make an impact on the market. According to eMarketer, the share of E-commerce sales will only grow in the next few years.
So, if you are ready to build your custom E-commerce website feel free to contact SPD Group for consultation and learn how you can implement innovations like Artificial Intelligence and Machine Learning for E-commerce Fraud Detection and Prevention. We have the expertise and experience to provide you with guidance to create the project of your dreams!
You have three main options: to use a website builder, connect with an online marketplace platform or build your own from the ground up. Each of these options has its own benefits and drawbacks. The choice largely depends on your budget and your desired list of features.
You should build your own online store if you require a specific list of unique features, multiple payment methods and maximum security.
It is safe to assume that you need at least three months to launch a project with a limited list of features. But every scenario is unique and requires an individual approach.
The price tag starts from $60,000, at least it is a market average at the moment. Once again, depending on the list of features and a timeline, the price can be very different, rising to $300,000 and beyond. Keep in mind that the eventual cost of a project is usually higher than initial estimation.
- E-commerce Statistics in 2021 – https://ecommerceguide.com/ecommerce-statistics/
- E-commerce Web site design: strategies and models – https://www.semanticscholar.org/paper/E-commerce-Web-site-design%3A-strategies-and-models-Wen-Chen/5ea25711d52b7742253124fa7b9468bb49ceca04
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