E-commerce continues to grow, year after year.
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Did you know ? According to the FEVAD, the turnover of online sales in France was 129 billion euros in 2021, which still represents an increase of 8.5% compared to 2020!
Over the past decade, French people's purchasing habits for products and services have evolved considerably. Many people today buy products or services on the Web, using Internet payment, on all technological devices.
E-commerce is therefore a particularly buoyant market. However, launching your own e-commerce business is not something to be taken lightly! How to become one of these new businesses on the Internet? Focus on e-commerce models and everything you need to know before getting started. What is e-commerce?
E-commerce refers to the act of selling a good or service electronically, via an Internet network. Companies and individuals can launch their e-commerce activity, everything will then depend on the type of transaction according to the e-commerce models.
E-commerce (another name for electronic commerce) is a process of buying and selling, via a computer or a Smartphone. This multi-channel strategy is widely acclaimed, especially since with new technologies, mobile commerce is gaining more and more momentum.
For companies or individuals, if the purchase of products or services is done remotely, payment is also made online, by electronic transaction. How does e-commerce work?
Electronic commerce is accessible on the web 24 hours a day, 7 days a week, unlike traditional commerce.
In practice, the online buyer follows almost the same purchasing process as when he goes to a physical store. He looks for information on a product and compares its price via a search engine.
At the same time, he can also be seduced by an additional item or service, and thus make a compulsive purchase. As soon as he places his order, the e-merchant of the online store takes care of the logistics and delivers the freshly purchased product to his address.
E-commerce is a distribution channel. Simple and quick to use, it allows you to shop at any time, without even having to move.
Many customers are thus seduced by the possibility of finding any product, at any time, from any place.
Taxes, consumer code, payments by card or by other means, rights and duties of companies, specificities of European countries, of the United States... This digital economy supports all the specifications of physical commerce.
B2B, B2C, B2A, C2B, C2C, C2A: all about e-commerce
Do you know all the e-commerce models? Companies or individuals, each profile can trade on the Internet. However, a few specificities must be taken into account, such as the use of service providers, private companies, platform specifications, etc. These models are each defined by an English expression that we will try to understand.
"Business to Business" corresponds to the type of trade between companies. One entity will sell items or services to another. Often, this relationship is not subject to certain taxes such as VAT. The products are then presented in H.T., Excluding Taxes. Octopus Market ; Alibaba or Amazon suppliers work with businesses in B2B commerce.
B2C: between businesses and consumers
The acronym "Business to Consumer" refers to the commercial relationship between companies and customers. These may be commercial transactions, online auctions or even online reservations (such as for the purchase of concert tickets, plane tickets or hotels, services in the field of tourism, for example).
The professional sells to the individual who is the final link in the chain, directly or via a marketplace like Amazon. This standard scheme is used in most physical shops with storefronts, such as supermarkets for example.
B2A: between business and administration
Sometimes, companies can collaborate with institutions, administrations. The English expression "Business to Administration" highlights this relationship. For example, when French companies have to pay their taxes, they contact their financial establishments in order to send the sum or sums requested to the tax authorities on national soil. It is therefore a B2A transaction for which they gave the right beforehand.
C2B: from individual to professional
"Consumer to Business": this is the model that puts the individual in commercial contact with the company. For example, on online image banks, amateur photographers sell their productions to professional platforms.
C2C: between individuals
The "Consumer to Consumer" model corresponds to transactions between consumers. For example, the Vinted or LeBonCoin sites allow individuals to sell their items to empty their cupboards so that other individuals can buy them in France and in certain European countries.
Be careful however, French law limits transactions per year for this type of business because beyond a certain amount collected, the individual is considered to be a professional.
C2A: from the individual to the administration
Very close to B2A, C2A connects a talented individual who can serve an institution, for example to edit a training plan, to write texts, a page of questions relating to the operation of a service of a municipality, the rules applicable within an administration, etc.
Similarly, e-commerce includes both purchases made from a computer and those made from another mobile device, a more recent process and also known as "m-commerce" for "mobile commerce". This sales channel gained momentum in the early 2010s, when adaptive technology was brought to market and then popularized, especially through Android and iOS devices.
Today, almost all e-commerce companies employ a multichannel strategy with the possibility of displaying their website on computer, mobile or tablet. What are the advantages and disadvantages of Internet commerce?
If e-commerce has taken such a boom, it is simply because e-commerce provides many advantages, not only for the buyer, but also for the merchant.
Moreover, creating your own business on the Internet has never been easier. It only takes a few minutes to create your own store, and no special computer knowledge is needed to get started.
Why get into e-commerce?
A great opening to the world
Unlike a physical store that only reaches local customers, e-commerce can extend the marketing of its products well beyond the borders of our country, European countries, to the United States, to Asia, which represents many more potential customers for merchants!
A constantly open store, here or elsewhere
While physical stores have limited hours, an e-commerce remains open all the time. Again, this is a great opportunity to increase your turnover.
A much lower financial investment
E-commerce has significantly lower operating costs than physical stores. To operate, they do not necessarily need staff or premises. It is also thanks to this that it is possible to offer particularly competitive prices, while displaying very good profitability. Simple logistics
It is also much easier to manage your stocks from an online store than in a physical business. Inventory management is much less tedious, which again reduces operating costs and inventory costs for e-merchants.
Collecting information about customers through e-commerce is also easier than in-store. Buyers are better able to provide their address, phone number and contact information in general than when they find themselves in front of a seller in a physical store. This information then makes it possible to set up much more targeted and therefore more effective marketing actions.
The ability to work anywhere
Finally, the manager of an e-commerce can work from anywhere in the world, provided he has an Internet connection. Thanks to this freedom of location, many entrepreneurs have chosen to pursue nomadic careers, working anywhere in the world to fulfill their dream while running a business.
The disadvantages of e-commerce (in general)
However, like any lucrative business, e-commerce also has some disadvantages: The obligation to be a very competitive merchant
On the Internet, and via the “shopping” tab of search engines, it is particularly easy to compare the prices of the same product between different brands. Consumers are very well informed and do not hesitate to compete. This tends to reduce the margin, which can sometimes hinder their profitability.
Transparency, honesty and humility can guide your business in order to satisfy ever more demanding customers. If, in addition, you add to that an ultra responsive e-commerce interface and a well-designed customer experience, you will be sure to stand out! The lack of human interaction.
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Although most e-commerce businesses can be reached by email or telephone, have a multi-channel strategy and are present on social networks, many consumers regret a lack of contact when shopping on the Internet. It is much more complicated to obtain personalized information online than in store.
Do not hesitate to imagine formats that can break the digital frontier: Live Shopping, story facing the camera, videos of your sales area, or even webinars around your area of expertise. The more links you create, the more your community will be loyal to you!
The need to deal with technical problems
To operate your online business, you will need a good technical infrastructure.
The fear of hacking
Computer security is crucial when running an e-commerce business. The fear of falling prey to hackers is one of the major drawbacks of e-commerce.
E-commerce can also put off the most eager customers. While they have the possibility of having the object they want immediately by going to the store, they are subject to delivery times when they order on the web.
Fortunately, shipping services are increasingly competitive and now offer 24H or 48H options. An opportunity for any e-commerce that wants to build customer loyalty quickly! How to get started effectively in e-commerce?
If e-commerce is particularly buoyant at the moment, it is better to properly prepare the launch of your business to ensure its success. It will then be necessary to establish an effective action plan in order to leave nothing to chance.
You can imagine creating a SWOT, an English expression for "Strengths - Weaknesses - Opportunities - Threats" or "Strengths - Weaknesses - Opportunities - Threats", to assess the challenges and risks, or even look at what your future competition offers to follow certain codes, price ranges or style of communication used. Ask yourself the right questions before you start
Do you know the 5W rule? This label, widely used in the United States, corresponds to a list of questions, which we can translate into French as follows: “Who, What, Where, When, How, How Many, Why”. As in any personal or professional project, the goal will be to know if you have any interest in investing in a new adventure. Challenges, time and money will be used to build your path to success.
Opening a business on the Internet is not an easy solution! If the investment is less important than for a physical company, the competition, on the other hand, is much greater. So take the time to have the perspective necessary to find the buoyant market! Make sure you find the right idea, while having enough motivation and time to devote to your new activity.
Also, do not neglect the importance of your communication: your social networks and your online presence will be your showcase for soliciting new customers and new partners.
Investing in image and marketing can help you gain notoriety and influence more quickly. It's not just selling in an e-commerce business!
Find an original concept online
To stand out, I also advise you to find an original and differentiating concept. Put yourself in your customers' shoes for a moment… What would be the reasons that would push you to buy on your own merchant site rather than from another e-commerce?
Offer them quality products at attractive price offers. Make a point of securing their digital data and shipments. Be reactive and attentive. Find the right balance to be competitive, yet profitable.
Do market research for your business
Your e-business will also be entitled to its market study before being launched! Before starting your project, find out about your potential customers, your competitors and your suppliers.
Try to identify the niches in which you could position yourself to specialize. Finally, precisely define the profile of your customers and their consumption habits.
These standard profiles will be guides to build your project. They will be able to determine many details of your marketing plan such as the presentation of your site, the way you communicate, expectations in terms of payment, shipping, delivery and, why not, localized requests (depending on their city or region ). Create your domain name, your logo and then your site
Once the concept is clearly in place, find an impactful and easy-to-remember domain name for your site. It must be available and original, without being too long. Really take the time to think about it, because it is a very important point to ensure the success of your e-commerce. Communication, public displays, online advertisements, brand DNA... All of these elements will be influenced or even conditioned by your name!
Your logo must also be well thought out, while revealing your sector of activity from the outset. From then on, all you have to do is create your site. For this, adesignmedia offers a complete and easily accessible solution, while offering you a large number of ergonomic designs.
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Take care of administrative procedures
At the same time, do not forget to manage the administrative and legal procedures inherent in the creation of an electronic commerce, such as the choice of your status, the opening of your professional account, the drafting of your statutes or the implementation of your business plan, to convince potential investors. Take advantage of complete and free training on e-commerce!
winning e-commerce!
To guarantee the success of an e-commerce and generate sales, many entrepreneurs stick to the famous “5P rule”: the product, the price, the promotion, the place and the business plan. In other words, to get off to a good start, take a step back from these different elements.
Find the attractive product and offer it at a competitive price and ensure good promotion with an effective marketing and web marketing strategy. Make yourself a place of choice on the net so that your e-commerce is noticed before your main competitors.
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