What is Ecommerce ( Understanding ecommerce business)
eCommerce is online transactions of goods and services between buyers and sellers where people use electronic cash to sell and purchase items via an online marketplace platform.
You can sell clothes, baby products, shoes, etc., to interested buyers through an eCommerce website. Buyers choose products that interest them, add them to a cart, and then checkout through integrated online payment mechanisms such as Visa, PayPal, and M-Pesa, among others.
eCommerce Business Meaning and Definition
eCommerce business involves using electronic devices to conduct business transactions and to maintain relationships between buyers and sellers through internet communication
However, several activities are necessary to run the business, such as materials procurement, signing contracts and proposals, making sales calls, payment processing, etc. All these transactions are automated with software such as Customer Relationship Management (CRM) and Human Capacity Management (HCM), among other programs designed to enhance eCommerce business.
Types of Ecommerce Business.
If you’re thinking about the best ecommerce business ideas to start, it is crucial to consider factors such as how you want to process orders, keep inventory, and make delivery. In addition to knowing how to start an ecommerce business, you must decide the type of ecommerce business to run to understand how it will make money.
Here are the six types of ecommerce business;
Business to Business defines an eCommerce model that allows transactions between entrepreneurs. Conversely, the best example of a B2B transaction is a business selling software to another trader or a car manufacturer selling spare parts to an auto parts retailer.
Business to Consumer trade model involves businesses selling goods and services directly to individual buyers. For instance, consumers can shop for clothes, groceries, phones, or electronics from an online store.
Consumer to Consumer eCommerce involves two parties that are both consumers. It is a case of a consumer buying from another on online marketplaces like eBay or Jiji, whereby a transaction is done after an agreement on the pricing and delivery of goods or services.
In a C2B scenario, the business is the end-user. Companies and organizations receive goods and services from consumers in this type of unconventional eCommerce. A good example of firms gaining from consumers is through freelance sites like Fiverr or Upwork. Freelancers post their skills and get responses from interested businesses that require their services. Another instance is that of a blogger advertising a product for brands on their website.
Business to Administration is also known as Business to Government (B2G) whereby Businesses sell goods or services to government agencies. A business can, for example, sell software to the government to be used for budgeting or licensing.
Consumer to Administration on the other hand has consumers selling goods and services to public administrations. A perfect scenario is that of US citizens remitting taxes through the EFTPS online system.
An image with the six types of ecommerce business (Image credits: techtarget.com)
An eCommerce platform is an online software application that enables sellers and buyers to make safe electronic devices business transitions.
eCommerce platforms have features such as payment processing and customer support that streamline transactions between buyers and sellers.
These are among the most top best eCommerce platforms in Kenya;
This eCommerce platform boasts quality traffic in Kenya because of its wide range of product categories. Beside availing products in computing, fashion, gaming, electronics, etc., Jumia is also known for its outstanding customer service.
This platform is known for listing genuine brands of phones and accessories like earphones, chargers, and modems. The products at Masoko are durable. Payment options at Masoko include M-Pesa, credit card, or Bonga points.
3. Sky Garden Kenya
Known for its user-friendliness and safety features, Sky Garden Kenya allows traders to sell goods and services and takes 8% for every complete transaction. Some of the products traded on the platform include clothes, electronics, and furniture.
4. Jiji Kenya
On this platform, sellers can post their goods and services so that targeted buyers can buy from them. The products can be new or second-hand, ranging from furniture, phones, cars, etc. This eCommerce site offers a premium service for businesses or sellers looking for more audience exposure.
Local or global sellers can host businesses on Kilimall and sell goods and services to interested buyers. Electronics, home alliances, baby products, fashion, and beauty products are some of the sought-after categories at Kilimall. Unlike the majority of eCommerce platforms, Kilimall operates on a pay-before-delivery basis.
What is Ecommerce Website
An eCommerce website, by definition, is a site that automates buying and selling transactions of goods or services and other digital products online.
Examples of eCommerce websites include internationally acclaimed amazon.com, apple.com, Etsy, AliExpress, and Ikea.
Ready to start your ecommerce business?
There’s much to learn when figuring out how to start a successful ecommerce business. The ecommerce business industry in Kenya is quickly gaining momentum. Online shopping sites have made the shopping experience faster, more convenient, and easier.
Last but not least, starting an ecommerce business without money is nearly impractical. However, the best way to keep your ecommerce website cost low selling products and services to have the right ecommerce website SEO strategy. Conversely, some of the best SEO practices for ecommerce websites include creating quality and competitive SEO keyword content to attract convertible organic traffic to your website.
I hope this post helps you answer your questions about ecommerce business. If so, please give it a share.