Everything You Need to Know About eCommerce in 2024, Explained

Mar 29, 2023

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5 min read

Angus Yip

From Phil Brandenberger purchasing Sting's Ten Summoner's Tales record album in 1994, e-Commerce has taken the world by storm. In less than three decades, it is now commonplace and irreplaceable within our daily lives.

This article will dissect what constitutes as e-commerce – tracing its history and relaying pertinent statistics along the way. Additionally, we'll explore various platforms and business models associated with this industry while forecasting future trends to look out for over the coming years; primarily concerning 2024 strategies that should be implemented into one’s existing practices or new endeavors altogether!

What is eCommerce?

E-commerce is an efficient and convenient way of trading goods and services using digital technology. This revolutionary model allows businesses to bridge borders quickly by connecting buyers and sellers from all over the world in a single marketplace via the internet.

The History of eCommerce

In 1994, history was made when Phil Brandenberger used his Mastercard to purchase Sting's Ten Summoner's Tales over the Internet for $12.48--the world’s first eCommerce transaction! Encryption technology had been utilized to enable an online purchasing experience, signaling the dawn of a new era in retail.

Fast forward 26 years and this industry has grown exponentially with the emergence of major players such as Amazon or Alibaba that have leveraged global connections on the internet alongside digitized financial systems leading to decreased sales at brick-and-mortar stores. The U.S Bureau of Labor Statistics (BLS) even reveals that employment within eCommerce increased by 110% between 1997 and 2020 and is projected to reach 450 thousand jobs by 2026—a clear sign that competition will only increase within this highly dynamic market space! Thus, before anyone dives into online business ventures it is essential they learn these key fundamentals .

The Benefits of eCommerce

The COVID19 pandemic has expedited the digitization of businesses, while altering people's office, living and spending habits. Consequently, e-commerce experienced a surge in growth with Shopify doubling its stock price and revenue since the epidemic began. It is predicted that by 2025 e-commerce penetration will rise from 15% to 25%. E-commerce has revolutionized traditional selling models by providing merchants an easier way to start their business ventures. To highlight these advantages further here are four key benefits of operating an online store:

No longer restricted by geography

For stores to reach their highest potential, they must expand by setting up branches. Fortunately, merchants are now able to leverage the power of online sales platforms as a reliable marketing tool.

Year-round Availability

With the Internet and web platforms continuing to exist, customers have perpetual access to ordering on these sites whenever and wherever they may be; simultaneously granting vendors who specialize in e-commerce a great way of making money.

Less Startup Cost

For store owners, rent and labor costs are major expenses. Fortunately, eCommerce offers budding entrepreneurs the opportunity to start up a business with minimal capital investment. With goods stored in warehouses rather than on-site as is traditionally done for brick and mortar stores, overhead costs can be kept at an absolute minimum.

More Consumer Choices

As consumer confidence in eCommerce grows, a flurry of new online sellers has been established to meet the growing demand. An abundance of goods and an impressive variety have become available for purchase, granting customers more options than ever before.

Different Modes of eCommerce

B2B：Business to Business

Alibaba is a prime instance of B2B commerce: suppliers offer their products to other companies. What makes Alibaba stand out are the incredibly low prices, enabling buyers to make considerable profits from wholesale goods.

B2C：Business to Consumer

Business-to-Consumer (B2C) entities, such as Amazon, Walmart and Apple offer goods directly to individuals.

C2C：Consumer to Consumer

Shopping online has become a convenient and common way for consumers to buy goods directly from other individuals. Popular e-commerce sites such as eBay, Carousell, and Etsy are filled with people offering their previously owned items or even new products they have accumulated over time. Unfortunately, it can be difficult to assess the quality of these products without first looking at customer reviews and ratings.

C2B：Consumer to Business

Consumer-to-business (C2B) transactions refer to consumers offering their products or services to an enterprise. For instance, a photographer could easily market and sell their photography skillset to a company in need of visuals for promotional materials by putting their work on stock photo sites such as Unsplash and Freepik.

Different Types of eCommerce

Products Online Store

Online stores can be found all over, making it easy for customers to purchase products via smart devices and computers.

If you own a brick-and-mortar store with physical goods, then the responsibility of stocking and shipping those items falls upon you or someone else if hired. In contrast to this method is dropshipping--a business model which has been made popular from its successful examples.

However in today's age, such an endeavor does not work as well due to intense competition among sellers on ecommerce platforms that have incorporated dropshipping elements into their services; thus allowing more people access to open up virtual shops at ease This issue is compounded by long delivery times associated with cross border eCommerce endeavors leading shoppers waiting longer than desired for item arrival.

Taking these concerns into account, I firmly advise against new entrepreneurs entering the market in this way. Instead, selling their own physical products online is still a preferred and practical choice when beginning with eCommerce.

Freelancing Platform

Taking advantage of the digital environment, services are becoming a more and more popular option for those looking to sell. Anyone could earn money by providing advertising support or graphic design online. Companies such as Upwork and Fiverr have created platforms specifically designed for freelancers to offer their talents in exchange for payment.

Digital Products

Are you looking to offer your customers more than physical products and services? Well, with e-commerce transactions processed over the Internet, there's a wide range of digital options that can be easily downloaded. These include online courses, software programs, website graphics; not to mention guides and e-books for downloading pleasure! Just take Netflix or Coursera as examples – they've made it big in no time by offering unique digital content which people have readily embraced.

eCommerce Strategies in 2023

Pick an eCommerce Platform

If you're wanting to know the various places and ways eCommerce takes place on the web, then keep reading! We'll explain some of the most common platforms used today. For additional information regarding these e-commerce programs, make sure to subscribe to our digital marketing blog. With this knowledge, your online selling experience will be easier than ever before!

1）Use a Third-Party Site Builder

Shopify

Shopify is the go-to choice of millions worldwide, having a 21% share in the global e-commerce market. Small and medium enterprises opt for this platform because it enables them to create efficient online stores without needing any technical expertise. Its user-friendly interface provides plenty of templates, shipping options, automatic taxes calculation and 100+ payment modes as well as social media integration. Additionally, SEO & Blog features make it even more attractive - all that hosted at no extra cost! In short - if you're looking for an easy yet economic way to expand your business then look no further than Shopify!

WooCommerce

Boasting 3,876,748 live websites and counting, WooCommerce stands out as one of the biggest open source e-commerce platforms available. By allowing for seamless WordPress integration with its comprehensive suite of templates (similar to Shopify) plus a wide variety of functions such as unlimited products/customization options & order/delivery management - all at zero cost! - it's no wonder why entrepreneurs flock towards this powerful platform. however if you're looking to take your business further and require more intricate tools; CodeCanyon offers over 1,773 plugins that are specifically tailored to provide more robust capabilities but may come with an additional fee. Perfect for small businesses using WordPress powered sites who want their online store running in no time!

Boutir

Established in 2015, Boutir is a versatile Hong Kong-based eCommerce platform spearheaded by entrepreneur Eric Ng. Through the boutique mobile app Boutir, merchants can set up their own online stores with ease and take advantage of its three solutions: Starter, Business, and Business Plus. The best part? All you need to do is get the hang of it—the application isn't complicated even for those who aren’t tech-savvy or design literate! Furthermore, your store will also be able to accept numerous payment methods (AlipayHK & Tap & Go included) that are most common among Hong Kong people while being connected to S.F Shipping locations as well - making it an ideal choice for SMEs seeking an all-inclusive eCommerce solution tailored perfectly just for them!

Magento

Magento is a powerful e-commerce solution that offers unmatched flexibility, scalability and customization to help medium or large businesses thrive. Equipped with over 5,900 extensions and modules as well as helpful templates and customizations options, this platform has already enabled more than 772k websites worldwide to succeed. Despite its complexity for newcomers who don't have the technical knowledge necessary yet, there's an entire community of developers at their disposal ready to provide guidance and support for those seeking it out. With two versions available - Open Source (free) & Commerce (starting at US$22,000/year), if you're looking for unrivalled features in an e-commerce website; Magento could be your best bet!

2）Develop the Website In-House

Establishing an e-commerce website requires performing a multitude of operations, including design, upkeep and software updates. Although developing a website is quite expensive initially, if you are willing to invest in it then brands have the liberty to add their own flair by going beyond technical limitations. IKEA and Casetify can be taken as prime examples of this approach - having your own site gives your business its digital home that truly reflects its brand identity!

However, establishing one's own platform also comes with risks since there is no guarantee for success or return on investment - refer to our article: How much does it cost to build a website for more information about setting up costs.

3）Social Commerce

Utilizing the power of Instagram, YouTube Live, and other digital platforms allows for a unique form of e-commerce. Through connecting with influencers, internet celebrities or live broadcasters who hold influence amongst their followers; these KOLs can advertise products to their fan base through various forms such as sharing posts or streaming videos. This method is incredibly popular due to its low cost and has been seen used in promoting items like handmade crafts, cosmetics & jewelry. Due to the love and trust that fans have towards these online stars they often help contribute greatly to sales success too!

4）eCommerce Platform/Marketplace

Amazon stands as the preeminent e-commerce platform, while Taobao, Lazada and HKTV Mall reign in China, Southeast Asia and Hong Kong respectively. All of these sites provide merchants with a method to build an online "store" on their platform for a monthly charge plus revenue share from sales. Yet this may be too demanding for start-ups or small businesses because of the intricate application process involved. This business model works best when used by established brands that have many products already lined up - enabling them to take advantage of the colossal traffic built into each respective website.

What's the difference?

If you opt for a self-managed website, it's likely that you'll look to hire an expert web development business to construct your official site according to the individualized requirements of your own. As well as needing a different server, host and URL provider, third-party software integration and custom functions must be introduced too; with the ultimate content crafted exclusively in line with what is needed.

In contrast, there are many reliable online shopping website builders, such as Shopify, WooCommerce and more. These platforms provide users with the ability to create their own custom URL while also supplying them with e-commerce features that come embedded in the system - like member login, discounts, buy X get Y free offers, installation of Google Analytics or Facebook Pixel capabilities HTTPS security and more! All you have to do is drag & drop a few tools or "plug-ins" for purchase. The level of functionality available will depend on your store opening platform choice as well as what fee you choose.

Not only can you use a website architecture platform yourself, but there are also web design businesses that use such platforms as Shopify and Webflow to construct sites for their customers. The Media Studio site you're currently viewing utilizes Webflow development. Out of the four methods mentioned including social media e-commerce, this is by far the least risky and simplest choice; moreover with an e-commerce platform not only do you save on website construction costs, shipping concerns become obsolete while at the same time your chances of gaining visitors dramatically increase.

The Future of E-commerce

With the e-commerce industry flourishing and projected to comprise of 18.1% of global retail sales in 2021, it is a great time for those looking to enter this business as there are immense opportunities but also heightened competition. As technology progresses, shoppers will be delighted with virtual or augmented reality experiences that mimic trying on clothes without actually having to do so - from being able to "try on" cosmetics using their devices' cameras - thus creating an even more enjoyable shopping experience!

AI technology has also recently been introduced into e-commerce platforms as well, such as ChatGPT's plugin with Shopify and Instacart; such advances provide customers with tailored services enhancing the overall online shopping process.

If you’re considering opening your own store but can't decide what products/services would generate revenue – read our article: “Unlock Incredible Business Prospects with These 5 Product Ideas for an eCommerce Store," and if needing assistance constructing a website Media Studio offers professional customized packages fit just for you! Click here now learn more about how they could help get started today.

eCommerce源自于1994年，當時Phil Brandenberger在網上購買了第一個產品——Sting的Ten Summoner's Tales唱片專輯。在不到短短30年後，電子商務已經成為世界各地人們日常生活不可或缺的一部分。

在這篇文章中，我們將更深入地了解什麽是電子商務。我們將回顧電子商務的歷史，並分享一些重要的統計數據。此外，我們還將深入研究電子商務平台和商業模式，電子商務未來趨勢以及2022年電子商務怎麼做。

什麼是電子商務？

簡稱電商，是透過電子方式（網絡或者移動程式）商品或者服務的過程。電子商務的本質是交易的平台，只不過交易平台轉移到了網絡上，比起傳統交易模式，更加快速容易甚至跨國界的連接買賣方。

eCommerce的歷史

第一筆eCommerce交易是在1994年進行的。一位叫Phil Brandenberger的人用他的Mastercard透過互聯網以12.48美元購買了Sting的《Ten Summoner's Tales》。這筆特殊的交易創造了歷史，並向世界發出信號："互聯網對eCommerce交易是開放的"。為什麽呢？因為這是第一次使用加密技術來實現互聯網商品的購買。

eCommerce從那時起就開始飛速發展。1990年代中期，Amazon和Alibaba等電子商務巨頭的崛起，改變了零售業的面貌。他們在很大程度上利用了全球互聯網的滲透和金融系統的數字化，這導致了許多實體企業的銷售額下降。

eCommerce的發展也改變了零售業的勞動力。美國勞工統計局（BLS）透露，從1997年到2020年，電商行業的就業人數增加了110%。BLS還預測，到2026年，美國eCommerce工作崗位數量將繼續增長，並達到45萬個。

明顯地，電子商務的高度競爭性將不斷改變零售業，影響大眾的購買方式。如今，對於許多精明的企業家來說，開辦網上業務似乎是一個有吸引力的想法，但在任何人想進入這個充滿活力的商業領域之前，他們首先需要學習eCommerce行業的基本法則。

電子商務的好處

COVID19疫情加速了慢慢進行中的企業數位化，而民眾的辦公、生活、飲食及消費習慣也已逐漸改變。電商的行業儼然成為疫情中最大的受益者，Shopify股價及收入在新冠疫情間翻倍。預期到2025年，電商的滲透率將由現今的15%上升到25%。電商改變了傳統的販售模式，讓商家能夠選擇以更輕鬆的形式開始創業。

以下將為你介紹電商的4大優勢，讓你參考：

不再受空間限制

實體商店需要受地域和空間的限制，即使再好的實體商店，也需要透過開分店的模式來擴大經營，而現在商家可以通過網路銷售平台來進行營銷。

全年皆可下單

只要有網路和網路平台的存在，消費者就可以在網路平台上隨時隨地下單，從事電商事業的賣家可以輕鬆賺錢。

開店成本降低

無論是店面租金，還是人力成本，對店家來說都是很大的消耗，eCommerce適合沒有雄厚資金的初創業者，因為門檻相對較低。賣家可以把商品的儲存轉到warehouse，這樣可以更加降低成本。

消費者有更多選擇

隨著消費者對eCommerce的信任度越來越高，網絡賣家隨之增長，無論是商品的種類或是商品的數量也是飛快增加，讓消費者有更多選擇。