E-commerce is one such industry that is growing in rocket speed. Entrepreneurs are enjoying the benefits of e-commerce website in 2020 in all ways. 2020 is one such unpredictable year of this decade that has changed the entire business format globally. The global lockdown due to pandemic has forced business owners to improve the business running process. Ecommerce and brick and mortar brands are bracing for the impact that Coronavirus will have on the business. This is why many retailers are turning towards online. In the year 2020, entrepreneurs will witness many benefits of e-commerce to an organization that can go for long term. According to the Toluna and Harris Interactive COVID-19 Barometer survey, 40% of consumers in the United Kingdom plan to reduce spend related to entertainment as lockdown restrictions ease.
This stats show, consumers are quite cautious with their spending, and this scenario is not just in the UK, but in other countries too. During the lockdown period, when shopping malls had to shut down their business, consumers majorly depended on e-commerce site. According to one stats, the global eCommerce sales amounted to around 3.5 trillion dollars in 2019, which is something huge.
E-commerce is one such industry that is evolving, and post-pandemic, there will be a considerable change.
Ecommerce Up 18% and Brick-and-Mortar Down by 14%
According to eMarketer survey, the Coronavirus has effected the world of eCommerce in 2020. In the year 2020, eCommerce is expected to see the growth by 18%, mainly due to the shutdown of Brick-and-Mortar. Right from buying essential products to non-essentials, consumers fully indulged into online shopping. These also showed the benefits of e-commerce to consumers in 2020. Therefore, if you are planning to shift your eCommerce business into the virtual world, then this is the right time.
Change in the Buying Behavior
In 2020 during the pandemic period, there has been a massive shift in consumers buying behaviours. However, the sales of some brands accelerated, but for some, there has been downsizing. Consumers will not be ready to visit the store for shopping, anytime soon. Therefore, taking your e-commerce business virtual is the best you can do to get the benefit in all sense.
Social Media Advertising and Covid-19
During the pre-COVID era, the amount of time US adults spending on social networks was expected to plateau in 2020. However, during the coronavirus pandemic, up to 51% of US adults ended up using social media. According to experts, this trend will fall by the end of 2020, since most of the people will return to pre-pandemic behaviour.
Emerging markets will play a significant role
When we talk about emerging players, India, China, Russia and Brazil will be the emerging e-commerce market. According to one estimation, more than 3 billion buyers from these markets will have access to the internet by 2022. For new e-commerce startups in these markets, this is an opportunity to widen the business and explore more market.
Table of Content–
- Types of e-commerce Business
- Benefits of e-commerce to an organization
- Benefits of e-commerce to consumers
- Advantages and Disadvantages of e-commerce business
Types of E-Commerce Business-
Since we have discussed how e-commerce business was changed in 2020 and how going online good be beneficial, let us check different types of e-commerce businesses-
- Business to Business
B2B eCommerce is the transaction of products or service between two or more companies. Small-scale and large-scale companies to boost the efficiency of the company do it. This is to improve the productivity, customer satisfaction and company process.
- Business to Consumer
This is an everyday transaction done by e-commerce companies to consumers. It is the most explored business model, and many top e-commerce companies have tasted success. Consumers are given enough product options to choose and place their order. In 2020, business to consumer e-commerce business was in high demand due to the lockdown.
- Consumer to Consumer
In this, two average consumers are involved in trading in one another. The entire transaction is supported by online payment portals, including PayPal, and conducted on different platforms. It is online selling platforms where users exchange new or used items for earning quick cash.
- Consumer to Business
This new form of e-commerce involves individual consumers offering products to companies. Individual consumers users their expertise or skills to provide valuable service to business for a long-term relationship. The consumer would help the respective company with content, logo designs or visual elements. There are many freelancing platforms where companies can find such consumers.
- Business to Government Agencies
Government agencies conduct an online transaction with businesses. Government agencies are considered as significant customers who buy products like security software, medical services, fuel, etc.
Benefits of e-commerce to Organization-
E-commerce is not new in the industry and has grown enormous in all these years. To survive in the market, e-commerce business owners need to be on the web and work as per the trend. For an organization, having a web presence of the e-commerce business can be very beneficial.
Let us check some benefits of e-commerce to the organization-
- Alternative Marketing Channel
For an e-commerce business, having a mobile app or website can be the best fundamental strategy for the marketing purpose. Through these platforms, you can market your products and service to drive more visitors to engage with your brand. You can use digital marketing assistance for paid ads and SEO to get better marketing result. The process not only boosts marketing strategies but also helps in increasing the sales of your products. You can connect with the leading app development company who can help in building an app for promotion basis.
Today, with enormous options on your plate, you can quickly build a website. You can even collaborate with the leading eCommerce website development company for developing and designing a website for your business. It is a cost-effective method of promoting your business.
- Cheaper Mode of Advertising
Having e-commerce in the form of web or app is a cheaper mode of advertising. You do not have to spend a heavy amount, and the result is faster. With the mix of traditional and digital marketing service, you can have cost-effective marketing to push your business ahead. This could be one of the benefits of e-commerce to the organization in the long-term.
Benefits of e-commerce to consumers-
If you think that businesses are the only one who benefits from e-commerce, then you are wrong. There are benefits of e-commerce to consumers in all terms. Here are some of the benefits-
- Wide Range of Products
One of the benefits of e-commerce to consumers is the wide range of product availabilities under one roof. From electronic products to apparels, you will find products of all price range and types. The virtual store enables e-commerce companies to stock enough good without the inventory cost.
Consumers can buy products at their own convince from any location. There are times when the consumer will not be able to step out and visit a store to purchase the product. In this situation, buying from an e-commerce website is the best. The best example is- during the lockdown when consumers invested more time in purchasing products from an e-commerce site.
- Adequate Information
One of the benefits of e-commerce to consumers is you get adequate information about products and the website. You can know about product reviews and other details of the customer service from the respective e-commerce site. As a consumer, you must have a complete idea of the site before you go ahead for shopping.
Advantages and Disadvantages of e-commerce business-
Like every company has its benefits and loss, e-commerce businesses to carry the same. There are certain advantages and disadvantages of e-commerce businesses you should know before you start your own in 2020-
Advantages of e-commerce businesses–
- Wider Market
With e-commerce, you can reach a wider market and connect with customers. Customers can make the purchase anywhere, anytime using the mobile device. You can develop the e-commerce website and app for easy reach.
- Customer Insights through Tracking and Analytics
By using analytical tools, you can track customer insight to make their online shopping experience better. Using SEO, PPC ads and other tools, you can know the traffic and other essential details.
- Low Cost
One of the most significant benefits of e-commerce to businesses is the lowest spending on developing sites and app. You do not need to invest in inventory house and other essentials. Moreover, you do not have to spend on TVs or billboard unless you have a reliable funding backup.
Disadvantages of e-commerce for businesses-
- Lack of Personal Touch
Consumers love to do business with companies who give a personal touch to the business. A personal touch can be provided when customers visit the store. However, in e-commerce, it is not possible, which can be a disadvantage.
- Lack of Tactile Experience
Another major drawback of e-commerce is consumers cannot feel the product unless purchased. While by visiting the store, you feel the product, and then you can buy the product.
- Customer Reviews and Trolls
There are many e-commerce brands faced trolls and negative reviews from customers and competitors. This can bring significant loss to your business, and customers may avoid buying products from me.
Looking at the current situation, one can earn good benefits of e-commerce website in 2020. Once you learn the benefits of e-commerce to organization and consumers, you can work on pushing your business ahead in 2020. If you are looking forward to starting an e-commerce business with a website, then we are ready to help in building an e-commerce website. You can request for the quote.