​​​​​​Ecommerce 101: The Evolution of Online Shopping

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In the technologically advanced era that we’re living in, ecommerce has brought about a drastic change in the way we source, shop, and use different products. The COVID period played a major role in uplifting the ecommerce game, and as of now, running an ecommerce operation has become a must for premium retailers and brands that sell products and services.

You might not be aware of this, but in the ecommerce market, the number of users is expected to reach a total of 284.6 million by 2025. In case you’re still not familiar with the ecommerce world, we have made this guide that aims to educate you about ecommerce in every way possible.

Without further ado, let’s dive in.

What Is Ecommerce?

Fully expanded to electronic commerce, ecommerce happens to be the process of selling and purchasing goods, as well as services through the internet. Not only does it encompass online marketplaces but also a wide variety of systems, data, and tools for buyers and sellers.

Businesses that decide to step into the ecommerce world tend to create some form of an ecommerce store or platform from which they can conduct ecommerce marketing and sales activities to oversee fulfillment and logistics. This also includes taking bookings and accepting payments.

The Difference Between An Online Marketplace And An Ecommerce Platform

An online marketplace can be interpreted as an online meeting place between the sellers and the buyers. They have the potential to grow and encompass much more than just technical toolkits for building brand stores.

Online marketplaces usually come with their own engaged audience and offer the ability to display and market products via promotions and advertising. Some of the famous examples of online marketplaces include Etsy, eBay, and Amazon.

On the flip side, an ecommerce platform is generally used by a brand to build their online stores, such as WooCommerce, Shopify, and BigCommerce.

Ecommerce platforms usually tend to offer brand services that include web design, SEO, listing customization, payment encryption, and other similar marketing tools.

The Evolution of Ecommerce

Undoubtedly, the ecommerce market has had a tremendous evolution in different verticals over the past few years.

Starting with the numbers, ecommerce has seen significant development in global sales as retail grew from $1.3 billion in 2014 to $4.8 billion in 2021. This is further predicted to rise to $6.4 billion by the year 2024, after which ecommerce sales would have amounted to a growth of 31%.

Moving forward to the marketplace model, it became relatively easier to build an online marketplace and sell, which is why many of the community shifted to ecommerce. Individual sellers got a number of advantages, and businesses were able to add one more sales channel and increase their product assortment.

Talking from a technological point of view, with the introduction of ecommerce, consumers were provided with a fully-connected shopping experience that allowed them to buy their favorite products from anywhere on earth. Not just that, but they had the extra perk of choosing between delivery or pick-up, and ecommerce businesses even facilitated exchanges and returns.

The Advantages of Ecommerce

Ecommerce is climbed significantly on the popularity chart because it offers several key advantages that tend to make it more desirable as compared to the traditional brick-and-mortar model. That said, let’s look at some of the most important advantages that ecommerce offers.

1.    Personalized Shopping Experience

One of the most significant advantages of running ecommerce operations is the flexibility to personalize every aspect of the user experience. When brands sell their services or products on online marketplaces, they do not have control over the design aesthetics, layouts, checkout processes, or return policies.

However, when brands operate via ecommerce platforms, they have complete control and authority over every step of the customer’s journey, every design element, and interaction with the customer.

2.    Payment Via Digital Currency

Digital Currencies are becoming widely popular nowadays, and if you’re one of those individuals who own it and wish to spend it as well, this one’s for you.

You might not know this, but now you can purchase gift cards using digital currency and redeem them at the online ecommerce platforms to get your hands on your favorite items. You can visit here to get more information on this.

3.    Low Operation Costs

Since ecommerce businesses operate online, they don’t need a physical storefront and employees to staff it. Ecommerce stores can be launched easily with minimal operating costs.

Not just that, but as ecommerce sales increase, brands are able to scale up their operations without hiring a large workforce or making major property investments which will result in higher margins overall.

Final Verdict: The Future of Ecommerce

Ecommerce revenue is expected to show a growth rate of 14.56% per annum, which will result in a projected market volume of $1,365 billion by the year 2025. This proves that ecommerce is no passing trend and will continue to expand horizons and unlock new dimensions, not only for the sellers but also for the consumers.

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