Table of contents:
- What is e-commerce?
- What is online retailing?
- What is electronic market?
- What is an online auction?
- What are the different types of e-commerce models?
- What is e-commerce marketing?
- What is e-commerce advertising?
- What are the different types of e-commerce marketing?
Bored of waiting in the queue to bill your purchased products? E-commerce is here to help you. With e-commerce you do not have to walk around the shopping mall to get to your desired product nor have the headache of standing in the long queue at the billing counter. Well, what exactly is this e-commerce?
What is e-commerce?
E-commerce or electronic commerce is the online mode of shopping where you can buy or sell your products electronically. With e-commerce, customers or sellers need not physically interact with each other. Using an e-commerce site, buyers can choose the products they want to buy which are listed by the sellers on the site.
E-commerce uses the technologies like electronics fund transfer, Internet marketing, electronic data interchange, online transaction processing, and so on. Usually, products or services are sold through e-commerce. The three main areas of e-commerce are online retailing, electronic markets, and online auctions.
What is online retailing?
Online retailing is a service using which buyers can browse, choose, and buy a product directly from the seller using a web browser or mobile applications. Online retail market is a growing platform and accounts for one fourth of the total retail market. Many large-scale retailers have taken their business into online to get more customers quickly.
One of the main reasons why sellers do online retailing is due to the fact that it is an easy access to the market. This type of retailing also cuts off cost on the laborers, rent of the shop and many other superfluous expenses. The export market is larger, and you can find your customers in some distant land where your product is in high demand.
What is electronic market?
Electronic market is the websites or applications offering e-commerce services, where the seller is connected with the buyer. It is similar to the marketplace we have in the real world and due to this it is often called the electronic marketplace. Here, all the transaction processes are done by the website owner unlike in the online retailing where the buyer directly buys from the seller.
Electronic markets cut the marketing costs and is an additional source of revenue. With online markets it is easier for smaller companies to globalize their business. Customers find it easier to compare the prices of similar products from different sellers.
What is an online auction?
Online auction is a service which facilitates the auction users and participants to sell or bid on a product or service online. It is similar to the auction taking place in the real world. An online auction is also called the virtual auction. The auction bids start are low prices and increases according to the increase of demand in the market. In online auctions a greater number of users can participate.
One main reason why people prefer online auction over the normal one is because in this there is no geographical and fixed time constraints. Online auctions offer flexible time limits and highly intensive social interactions. It also encourages high volume business. Some examples of online auction sites are OnlineAuction, and Overstock.
What are the different types of e-commerce models?
Based on the people involved with e-commerce, there are four categories of e-commerce. They are Business to Business, Business to Consumer, Consumer to Consumer, Consumer to Business.
Business to Business (B2B)
This type of transaction uses two business parties on both the seller’s and buyer’s side. A company buys from another company. An example of this could be a retailer buying from a wholesale via Internet. B2B transactions in e-commerce pave way for companies to learn about other companies’ products and services and connect with each other on social media or any other platforms.
Business to Consumer (B2C)
This type of transaction has business party on one side and consumer at the end. The business sells directly to their customers on online retailing platforms. Therefore, B2C e-commerce can be used to define the transactions between online retailers and their customers. With B2C e-commerce, small business owners get a global reach since the transaction is done on Internet. B2C transactions on e-commerce also helps the retailers to cut cost on superfluous expenses.
Consumer to Consumer (C2C)
C2C transactions have consumers as both the parties. This happens when a consumer sells a product to another consumer online. The transactions maybe facilitated by a third-party website or an application on a smart device. An example of this could be the service provided by e-commerce website such as Amazon, where the users can become sellers. The benefit of this is that the seller could maximize his or her profit as they need not spend on infrastructure to create a store front.
Consumer to Business (C2B)
This is not a very common trend in online transaction. In this transaction, consumer is the seller party and business group is the end party. This type of transaction is common in real world as we can see farmers selling their products to business parties and so on. An example of this is a website named Upwork, where the consumer can list their services and business party bids on the offer kept forward by the consumer. The main tools of C2B sellers are social media channels, consumer feedback and market research.
With e-commerce comes a need to advertise and market it. That is when we need e-commerce marketing. Is digital marketing and e-commerce marketing the same?
What is e-commerce marketing?
E-commerce marketing is the process by which e-commerce sites and applications creates an awareness about their product or service with an aim of increasing its sales.
E-commerce marketers use various forms to market their product or service. Social media, digital content, search engine, and email campaigns are some of the ways through which the marketing happens. These marketing gimmicks attract the visitors and pushes them to buy the product.
What is e-commerce advertising?
E-commerce advertising is the act of promoting a product or service to increase its sales. E-commerce advertising comes under e-commerce marketing. The difference between both of this is that e-commerce marketing focus or creating an awareness and driving action towards the product or service while e-commerce advertising is the methods you adopt to promote your product or service. You can advertise your e-commerce with banner ads, display ads, or with rich media ads.
What are the different types of e-commerce marketing?
Based on the channels used for executing marketing campaigns there are few types of e-commerce marketing.
Social media marketing
With rise in popularity of social media networks, most of the people have an online presence which urged the commercial companies to mark their social media presence. By creating a social media presence, they become more approachable and relevant.
Social media marketing is when you market your product or service in social media. Not every social media is suitable or apt for your product. You should make sure that you have selected the right social media. Digital world is colorful and lively. Therefore, your ad should also be full of color and life to draw the traffic towards your e-commerce website. In social media platforms like Instagram, there is a separate section of business. By adding our product in the shop option, users can directly buy your product from here.
Another form of social media marketing is through social media influencers who share the reviews of your product or service. Generally, any customer’s good review can work but having a public figure talk great about your product will increase the credibility of your brand.
Content marketing focuses on content to market a product or service. The content maybe in different forms, like text form in blogs, or video content or image content. Some of the ways to do content marketing for your e-commerce site are:
By optimizing your product page: – Optimize your product page by targeting relevant keywords and using them in page titles, heads, and alt text for the search engine. Pick keywords that are highly probable for your customers to type in.
- Putting up relevant blog post on your website: – Try to include blog content that are relevant and most useful. Make these blog posts more engaging which will make them to go to other blogs posts you have written related to it.
- Creating guest posts: – Submit guest posts for external websites. These posts can get you your right audience. By submitting guest posts, you can increase the credibility and reliability of your website.
- Create video contents for YouTube: – Being the second largest search engine, YouTube could fetch you a massive audience. A great way to be watched is by creating tutorial videos relating to your product. You should also use highly searched keywords to determine your title for the video content.
- Include keywords in your FAQ section: – FAQ section is an important part of your website and most of the first-time users go to this page. Try to include relevant, high volume and long-tail keywords in this section.
Search Engine Marketing
Both Search Engine Optimization (SEO) and paid advertising comes under Search Engine Marketing (SEM). With great knowledge of Google’s algorithm for getting higher SEO rank, you can produce optimized content. You can ace SEM with pay-per-click campaign, display campaigns, product specific ad campaigns. You have to pay for the highest spot you need on the search engine result pages.
The pay per click campaign is a guarantee that your target audience will see a link to your website when they search something related to it. But you have to pay for each click and therefore, this is quite expensive. Register your website with Google AdWords to get accurate keywords which could land you a higher probability of a purchase or a click by your potential buyer.
Email marketing is the way of marketing through email. It is one of the oldest forms of digital marketing and still holds relevance. This is a direct marketing method. Email marketing works on automation. Your subscribers are grouped on the basis of interest, age, and other characteristics and according to this a drip campaign will happen. The only thing you need to take care of is your mailing list.
In two ways you can game up you email marketing.
Post purchase follow up: – When a user leaves your site after a purchase, after a few days do a follow up, asking for a review, or giving lessons on how to use the product. This will make the customer feel that they are not just a customer for the company and will help in building loyal relationships with the company.
- Follow up on abandoned shopping cart: – When a user adds things to a shopping cart and do not complete their purchase, remind them of it and asking them to complete it. Also diagnose why they did not complete the purchase.
Influencer marketing is the type of marketing campaigns you do when you associate an influencer to your brand. You can ask a social media influencer to market your product on their social media page. This can fetch you more audiences. Try to associate an influencer having followers that belong to your target group.
Affiliate marketing is the type of marketing that uses a third party to sell your products or services for a commission. These affiliates uses traditional marketing tactics unlike social media influencers. They use marketing gimmicks like paid advertising, and content marketing to drive traffic to your webpages.
Word of Mouth Marketing
Word of mouth marketing is an effective way of marketing your product or service. People believe what they hear from people who have used the product or service before. People are always doubtful of the marketing gimmicks of the business and need an assurance from somebody they know who have used that product.
Have any queries on marketing your e-commerce site? Feel free to comment down below so that we can get back to you.
Also read more on e-commerce.