In this article, I will give you a brief overview of the e-commerce industry, and later we take a look at the e-commerce builders to use to succeed. This article begins with an e-commerce definition and ends with essential e-commerce statistics for 2020. As a result, with help of BestCloudTools, you should get a better idea of what it takes to succeed in this industry.
Whether you’re contemplating an idea in your head to start an e-commerce site or already running an online store, you’ll find plenty of information in the following article. Please feel free to read about Website Builders before digging into this article. Keep in mind that all the characteristics of website builders apply to e-commerce website builders also.
What is e-commerce?
Before jumping into e-commerce builders’ topic, it’s a good chance to describe e-commerce as an industry briefly. E-commerce, which is also mostly known as electronic commerce or internet commerce, means the buying and selling of services and goods via the internet and transferring money and data to execute these transactions. When individuals and companies sell or buy products and services on the internet, they engage in e-commerce. The term “e-commerce” includes other activities, such as online auctions, payment gateways, online ticketing, and internet banking.
E-commerce began already in the 1960s when Electronic Data Interchange (EDI) came in use for transferring documents back and forth. In the 1990s, the emergence of online shopping businesses happened. The first online purchase in the world was a Sting CD, which was sold by US retailer on NetMarket on 11 August 1994. This transaction was a crucial point of history and signaled to the world that the ‘’internet is open’’ for e-commerce. It was the very first time that encryption technology was used for internet purchases.
The processes of e-commerce have become unbelievably convenient and easy. Anyone can buy anything right from his living room, and it takes just a few clicks. With the development of smartphones, this has evolved even more. Now it is possible to search for any product or service online, and there is no need to go anywhere physically.
E-commerce has grown drastically ever since. The face of the retail industry was mostly changed by the rise of e-commerce giants, such as Amazon and Alibaba in the 1990s. They contributed to the digitalization of the financial system and capitalized on global internet penetration.
The phenomenal growth of e-commerce has changed the retail workforce as well. Based on the data of the U.S Bureau of Labour Statistics, employment in the e-commerce sector increased by 80% from 1997 to 2016. The number of e-commerce jobs will keep on rising and reach 450,000 only in the US by 2026, predicts BLS.
It is now indisputable that the highly competitive nature of e-commerce will change the retail industry and influence customers’ behavior in the future as well. Before diving into e-commerce dynamic world and starting an online business, it is first important to learn the e-commerce industry.
What Is an E-commerce Website?
E-commerce websites are online platforms or portals where selling of goods or services can execute online. That means all the transfer of information and funds made over the Internet.
Usually, an e-commerce website provides all the necessary steps to make buying goods or services as easy as possible. The whole process starts with selecting particular products and ends with making the online payment. For a well-working online shop, you need to choose the best e-commerce builder.
Types of E-commerce Websites
All the e-commerce websites have different purpose and can be classified to specific business model. These typically include:
- Business to Consumer (B2C) – represents a transaction between businesses and consumers. B2C is the most common business model used today by different retailers like IKEA, Nike, and others.
- Business to Business (B2B) – this is a typical model of companies providing products and/or services to other businesses. For Example Microsoft’s Teams product is used by many businesses worldwide. Microsoft reported in April 2020 that its product was used by more than 75 million daily active users. That’s up more than 70% of growth in year time caused by the Covid-19 pandemic.
- Consumer to Business (C2B) – individuals can create value for companies. One of the examples for this business model are freelancers who can co-operate on projects and earn profit for business. Besides we all know those half-god half-human influencers figuring in social media followed by half of the population.
- Consumer to Consumer (C2C) – many people have sold their old smartphone to another person on eBay at least once a life. This is a business model where one consumer sells products to another consumer by using a third-party online marketplace.
- Government to Business (G2B) – government provides online services to businesses for e-learning or informational purposes.
- Business to Government (B2G) – this model refers to companies that provide goods and services for the government.
- Consumer to Government (C2G) – situations where either you pay taxes, request information, or anything related to the public sector.
These business models are enlisted purely for informational purposes. Though there are seven cooperation models only two first of them used 80% of the time and form the basis of the e-commerce business.
How to Build an E-commerce Website?
Selling products in an online shop is one of the easiest ways to make a bit of additional money. An e-commerce website allows you to clearly and quickly introduce your products to a lot of customers. E-commerce websites have numerous advantages over usual physical shops. Therefore, this is the main reason why many businesses have expanded to the Internet and created an e-commerce website by using an e-commerce builder.
It is unnecessary to be competent in the area of technology to build a website for your business. A developer can help you with e-commerce website creation, but you can also easily create yourself an e-commerce website. Here step in various e-commerce builders. E-commerce platforms help you to build an e-commerce website quickly and easily. Below, you can find some of the best e-commerce website builders you can use to create your e-commerce website.
Choose the Best E-commerce Builder for Your Website
Retailers and small entrepreneurs build online stores to showcase their products and services. There is a wide range of e-commerce builders to choose from. Therefore, making the right choice may sound difficult decisions for beginners. Although there are many great e-commerce website builders on the market, I encourage people to use two of them. Both platforms have their strengths and weaknesses.
WooCommerce is a free and open-source plugin and is easily addable to the WordPress platform. An ecosystem with WordPress makes Woocommerce the most used e-commerce builder in the world. Over 28% of all websites around the world use WooCommerce and this dominance grows year to year.
Shopify, on the other hand, is not an open-source platform and has less flexibility. However, it still has lots of apps to extend functionality and features for your online store. Shopify is all-in-one solution that forms the most substantial benefit of this platform. When choosing any of the suitable plans, all the essentials features are in place for you already. If you have dropshipping thoughts in your mind, Shopify is the right e-commerce builder for you. Though its the best option when you are located in the U.S.
There’s a large number of e-commerce builders. Therefore, choosing the right solution for your business depends on your budget, preferences, and company needs. Below I’ve listed all the pros and cons of my preferred e-commerce solutions for small and medium businesses.
Step 1: Choose e-Commerce Builder
Choose Shopify e-Commerce Builder
- All in one solution
- Best for dropshipping
- Fast and scalable
- Used by 1M+ stores worldwide.
- Around 100 themes to use
- Over 3,200 apps to add features
Oberlo lets you find products, add them to your Shopify store, and ship them directly to your customers. No inventory, no risk.
Let’s Start Dropshipping!
Choose WooCommerce e-Commerce Builder
- Suits every budget
- Easy to use (especially for people who already use WordPress)
- Thousands of plugins
- Can sell all kinds of goods (virtual, physical, downloadable, services, etc.)
- Works with all well-known payment gateways
- Open source and easily customizable to suit particular needs
- Big community of developers, marketers, and experts
- Powers over 28% of all online stores
Let’s Start Online Business!
Step 2: Setup e-Commerce Builder
Still not confident about starting an e-commerce business? No worries, there’s more motivational information coming below. I want to give you some more impulse in the following section of the e-commerce statistics for 2020.
The Most Important E-commerce Statistics for 2020
It’s crucial to keep yourself up to date with the e-commerce statistics before making life-changing decisions about e-commerce builders. The following hard facts and data give you the best understanding of the e-commerce sector.
- It is expected that by 2040, 95% of all purchases are from e-commerce websites.
- Global retail e-commerce sales are projected to reach $28 trillion by 2020.
- People can make online purchases 24/7, and that’s the main reason why they do that.
- Your online store gets 32% more sales when your store has a strong presence on social media platforms.
- Around 93% of online customers say that the visual look of an online store plays an important role in their purchasing decisions.
- Around 51% of online customers conduct their purchases by using smartphones.
Still having doubts? There’s more important facts following:
- Around 43% of e-commerce traffic is organic.
- Around 75% of customers abandon slow-loading websites.
- Around 80% of online customers don’t make purchases from e-commerce stores when there are problematic return policies.
- Around 85% of all products purchased via social media platforms come from Facebook.
- When you provide free shipping there’s a bigger change that customers spend some more money while buying from your online store.
Congratulations, and hopefully, you have finished your e-commerce website creation with one of the e-commerce builders listed above. When you still have any concerns or would like to share the testimonial after a successful online store setup, please send me an e-mail. I am grateful.
Good luck with your e-commerce business!