The New Way of Doing Business!
Electronic commerce or e-commerce is a business model which allows the purchasing and selling of goods and services between firms or individuals. Following the rapid growth of consumerism, more stores and platforms have been established and created, except, these are set-up online, in the digital space. Some examples of e-commerce businesses that have achieved great success are Amazon, eBay and TaoBao. They have generated more revenue than the familiar brick-and-mortar stores we see on the streets.
The E-Commerce Models
There are four main models in the world of e-commerce and they are as follows:
- Business-to-Consumer (B2C) → The most common type of business whereby a business sells its goods or services directly to their customers (For example, Apple sells iPhones to its customers)
- Business-to-Business (B2B) → A company sells its products/services to another company (like us, SoCreate, we offer marketing services to other social enterprises)
- Consumer-to-Business (C2B) → A consumer sells something to other businesses (think about famous Youtubers selling their ad spaces to advertisers)
- Consumer-to-Consumer (C2C) → A consumer sells a product to another consumer (For example, using platforms like eBay and Carousell, individuals can sell their products/services to other individuals)
As illustrated, transactions can occur in the digital realm, like in brick-and-mortar stores. So, why e-commerce?
The Shift Towards E-Commerce
There are a multitude of benefits that come with e-commerce. The flexibility to shop anytime and anywhere is definitely a great pull factor. Consumers no longer have to wait in line for their favourite products and instead, they can shop in the comforts of their home. Shopping and the payment process have been streamlined alongside improvements in technology, making online transactions convenient and hassle-free.
Moreover, in the digital space, consumers and businesses can compare prices across different websites and platforms, allowing them to enjoy better deals as opposed to offline searching, which can be tiring and inefficient. With a few clicks on their web browser, they can find out the best deal, saving both time and resources.
Moving Forward
In light of the current pandemic, the digital world has been fast-forwarded and the transition to e-commerce has been accelerated. As the market becomes increasingly saturated, it is of paramount importance for brands to differentiate themselves and stand out in order to engage and retain customers. One effective approach would be to invest in the human touch, be it through setting up loyalty programs, rewards systems or customised email marketing. Listen to your customers and invite them to journey with your brand.
Keen to distinguish your brand in the e-commerce industry? Feel free to follow us on social media @socreate.sg to discover more marketing tips, and email us at socreate.sg@gmail.com to engage our services to better market your social enterprise!
