E-Commerce Basics

No one could have predicted the insurmountable relevance of e-commerce in most of our daily lives. Since 2000 and the dot com boom, this retail sales sector has only increased. In 2011, we saw 5% of all retail sales occurring via e-commerce, an already large number. After the pandemic helped bootstrap it up, that number has jumped to a staggering 21% in a little over a decade. Will this number continue to grow? After all, no one ten years ago would have thought it would have increased 3 times. While it is difficult to predict the nuances and direction e-commerce will take, here are some things you should know about it.

The important segments of E-Commerce

To understand how this system works, you must be familiar with the many ways of communicating who is buying what and who is selling to whom. Here is a helpful list that you must first understand. These words can also be found in other business means.

• B2B: Business to business, the electronic exchange of products, services or information between businesses. An example could be an online directory that allows a business to search for relevant products.
• B2C: Business to consumer, businesses selling products, services, or information to consumers. An example could be Amazon.
• D2C: Direct to consumer, the manufacturing business sells things directly to the consumer. An example could be Warby Parker, who designs, manufactures, and distributes its eyewear products in-house.
• C2C: Consumer to consumer, when consumers directly sell things to consumers. An example could be eBay or Craigslist.

There are more of these that are more relevant for certain industries depending on what goods or services are being exchanged, but these are the ones everyone should know.

Advantages over traditional physical retail

With the more obvious presenting and known disadvantages to e-commerce over physical retail, the advantages aren't as well known. Here are some of the benefits.

• Worldwide sales opportunities: People outside of the US are able to buy and sell your products assuming you have proper shipping options.
• Attract new customers: It is much easier to reach people on any device as opposed to finding them in person.
• Lower costs: No need for as large of a physical location to market and hold your products.
• Automate business
• Customer segmentation: Learn more about the many people who interact with your goods and gain insight into the demographics they make up.

What has interested me recently?

With any conversation surrounding e-commerce, Amazon always pops up. However, did you know that 42% of all Amazon reviews are likely to be fake? Reviews are a huge factor that helps push or pull people to buy certain things. I decided to read through this article that offers assistance in determining if Amazon ads are fake, misleading, or not truthful. Here are some red flags to look for if you are deciding to buy an item.

• Insane percentage of 5-star reviews
• Lack of detail in the reviews
• They mention competing products
• Reviews are closely clumped together within a time frame
• Not a red flag for the fake reviews, but searching up the item