What is an area in e-commerce

E-commerce

E-commerce, internet trading, online trading - there are several names for buying and selling products on the internet. No wonder, E-commerce is more important today than ever before, and the trend is rising.

What exactly does e-commerce mean?

The meaning of "e-commerce" (English for "electronic commerce") can best be captured with the German translation "electronic commerce". The term includes all electronically processed types of buying and selling products and services on the Internet. In contrast to “e-commerce”, “e-business” also includes e-sales, advertising and online marketing - that is all areas that increase sales and the distribution of products on the Internet are necessary.


You can take these channels into account in your e-commerce strategy.

E-commerce: great importance for the economy as a whole

Online shopping is now a firmly established branch of trade and it is a tremendous part of it great potential for companies and brands. Due to the penetration of households with the Internet and Internet-enabled devices, ordering products in an online shop is now quite a thing natural part of customer buying behavior. Almost all large retailers have an online shop, through which they usually generate high sales.

Although online trading takes place on the Internet by definition, the boundaries to other sales channels, such as brick-and-mortar retail or direct sales, can be fluid. Customers get to the offer in different ways of a company, whereby the touch points can change. For example, it is possible for a customer to click on the link in an SMS and get into the web shop, where they then buy goods. Or it can be found on a printed flyer handed out by a sales representative at a trade fair, the URL of the e-commerce shop, which the customer later enters into his web browser.

Ecommerce - What's the Good About It?

The Purchase without delay is becoming more and more attractive and the e-commerce industry still has enormous potential for growth. Hardly any company can now afford to sell its products exclusively offline. Also in the B2B area more and more sales are being carried out via internet platforms.

The Contact with the customer is on the Internetquickly and inexpensively to manufacture. Via social media, with good content marketing and via advertising on the Internet, potential buyers can be targeted and with few wastage to the right offersteered become. The constant availability of the online shop gives the customer the opportunity to shop in peace at any time of the day or night. Chatbots and automated e-mails contribute to fast, efficient communication.

With the right e-commerce strategy and well-thought-out e-commerce marketing, new customers can be reached relatively easily and also encouraged to make impulse purchases. Online trading is therefore always opening up new ways to sell one's own products to men or women. And it creates direct customer access, also known as D2C.

One To build an online shop, It's not that difficult. Ready-made modular systems and automated customer and warehouse management make it easy for companies to offer their products on the Internet these days. To find products and compare them with one another, you can take a look around on our OMR Reviews platform in the Shop Systems Software area. Let's take a closer look at this in a quick guide to ecommerce.

Create your own online shop? Not that difficult at all!

If you are thinking of selling your products or services on the Internet and opening an online shop for them, the best thing to do is to ask yourself: Should it Sales really through oneown online shop run or enough Selling on large sales platforms such as Amazon, eBay and Co.?

Both variants have theirsAdvantages and disadvantages. When opening an Amazon shop or an eBay shop, commissions are incurred for every item sold. Depending on the product, these are between 5 percent and 20 percent. This can significantly reduce profits depending on the margin and sales. On top of that, the further use of customer data is not possible is, so no newsletters can be sent or direct offers can be made in the subsequent period. In terms of customer loyalty, too, it looks rather poor: the average customer on sales platforms selects his sellers on the basis of a low price rather than on the basis of loyalty or image. You are also dependent on the respective platform and its development and possible cost increases.

These aspects are not relevant for an online shop operated by yourself. But here you are solely responsible for the functioning of the IT, for availability, payment processing, data security and - very important in Germany - legal security.

Of course nothing speaks against it Offline and online trading in parallelto operate. It is well known that you shouldn't put all your eggs in one basket. But in the long run, having your own online shop is the best way to build an established brand and customer trust in e-commerce.

Find good products

If you want to set up your own online business, you should think about it before starting, where and how you ship your products. Digital products are easy to sell by downloading, but physical goods have to come to the customer in some way.

If you already have products that you want to sell and know how to store them, you can start creating your own webshop right away.

If you still need products or are unsure about the distribution system, you can choose between the following options:

  • Dropshipping:
    Here a business relationship is entered into with the manufacturer or wholesaler of products. He usually provides you with pictures, descriptions or even complete online shops. You take care of marketing, customer service and sales of the products. If a customer buys a product, you order it at the agreed purchase price (EK) from the manufacturer or wholesaler, who then sends it directly to the customer anonymously or in your name. So you don't have to worry about shipping, postage, returns or your own warehouse with staff. Your profit results from the difference between the purchase price at the manufacturer and the end customer price or sales price (VK) in your shop.
  • On-demand products:
    This model works like dropshipping, but the Products are only manufactured as soon as customers order them from you. This form can be used, for example, for self-designed T-shirts or other printed items. It is an ideal model if you want to test your market first before ordering a large number of your own products. But beginners in e-commerce are also well advised to do this.
  • Wholesale:
    With the classic among the sales types do you buy wholesale in bulk?, store the products on your own responsibility and take care of presentation and shipping yourself. This form of distribution offersthe possibility of the greatest profit, as bulk buyers often receive massive discounts when shopping in wholesale.

Now you can start: create an e-commerce webshop

Once you have clarified your product procurement, you can start creating the online shop. To do this, you should think about the following things in advance:

  • What functional requirements do you have for the shop?
  • In which languages ​​should it be available to customers?
  • Which payment methods do you want to offer?
  • Which third-party interfaces should the shop be connected to?
  • Do you want to maintain the shop yourself or should it be maintained by a third party?
  • How should any storage software be connected?

Then you choose a suitable shop system. You have a few free options and commercial systems to choose fromthat are more convenient and more individual in the facility. Of course, you can also have your entire online shop created, it depends entirely on the budget that you are willing to invest.

Before you start

But wait before setting up an online shop the most important thing for you: the domain. It gives your shop an address at which future customers can call it up. Think of a snappy name and check in advance that the name is not used yet and that no trademark problems can arise.

Also remember that you have to register separately with all payment providers, shipping service providers, providers of marketing applications, etc. and only then can you integrate their technologies and services into your web shop. If you want to run your brand new shop yourself, you also need own web space or own server. Find a trustworthy hosting provider and choose a web space package in the medium price range that also provides the shop with the necessary technical resources.

Which ecommerce tool to choose?

By far the most widely used e-commerce systems for self-hosted online shops are Shopify, Magento, xt: Commerce, Gambio (based on xt: Commerce), Shopware and Oxid. It is also becoming more and more popular WooCommerce, a free webshop software that works as a plugin on the popular WordPress CMS. You can find more e-commerce systems here.

Every e-commerce shop software can be used as a B2C, but also as a B2B shop system.

Ideal for beginners: the modular system

With a small shop you can also first start with a modular systemthat some providers like STRATO, Ionos (1 & 1) or Jimdo have on offer. Here you get for a monthly fee Storage space, domains, payment provider interfaces and finished shop pages from a single source. The setup is intuitive and well suited for beginners who want to create an online shop themselves. However, if your webshop is growing - as is to be hoped - you should consider a self-hosted solution.

Some Dropshipping sellers also offer “turnkey” e-commerce stores for a monthly rent. These only have to be personalized with a domain and receive automatic article maintenance. Order processing and web space are also included.

For advanced users or beginners with a high budget: open source solutions

With open source software it is possible oneto create a free online shop. These systems require their own hosting package, on whose web space the CMS for the online shop is installed and operated. A certain technical knowledge is required for this, since many settings and maintenance have to be done by yourself.

Let's look at the open source Shop systems in comparison at.

  • Magento: It is the best known shop system in international e-commerce. It has a wide range of functions and is ideal for shops with many articles and high sales. The high-performance system is relatively complicated, which is why those who use it to create their online shop have to reckon with quite high costs.
  • xt: Commerce: The all-rounder is recommended for small and medium-sized shops. The free version has basic functionality and has to be upgraded with many add-ons and modules, some of which are subject to a charge.
  • Gambio: Gambio is based on xt: Commerce, but has been further developed and is sold as a separate shop system with paid support. A good choice for beginners.
  • Shopware: Shopware is available in a free or paid version. It is also a good all-round shop system.
  • Oxid eShop: Medium-sized e-commerce players with a relatively large number of items get a well-structured shop with Oxid. It is available as a scaled-down free version, but also as a commercial edition.
  • WooCommerce: The free plugin for WordPress supplements the popular CMS with shop functions. It is therefore ideally suited for adding a shop to an existing WordPress website or for pushing a shop with a lot of editorial content.

What does it cost to open your own online shop?

Free systems are easy to use, but require some experience. With the extension by paid add-ons or services stay free variants in the end often not free of charge. So it is worth considering saving yourself the trouble and nerves and investing in a commercial solution straight away. Commercial versions offer useful and important functions and professional support.

If you don't know your way around very well, you can one Webshop toocan be created cheaply. The cost varies depending on the requirements. Specialized agencies or freelance developers this can be found on the Internet, Google has advice.

If you don't want to worry about anything, it is best to use hosted shop offers based on a modular system or dropshipping.

Open an Amazon shop

The Amazon platform, which once started out solely with the mailing of books, is undisputedly one of the biggest players in online retail. When it comes to ecommerce examples, Amazon is always named one of the first. In addition to Amazon products, retailers can also Sell ​​your own goods on the digital marketplace.

You too can easily your own Open the Amazon online shop. Setup costs may arise in shapea monthly basic fee as well as sales commission at. The biggest advantage is that you automatically placed on a platform with millions of buyers and can sell your goods without a lot of your own marketing. You benefit from the size of Amazon. In addition, you do not need to run your own online shop.

Note, however, that the accruing commission reduce your profit becomes. However, sometimes you can Compensate for the higher number of sales. You can either opt for a basic shop or a professional shop, depending on the expected number of items sold.

If you have a large amount of products in stock, so can you Amazon FBA ("Fulfillment by Amazon")take advantage of. Here you send your items to one of the Amazon warehouses and the entire process, from shipping to returns, is done by Amazon. You pay an additional fee here, but it couldn't be more convenient. With a little Amazon marketing, you can push your sales a little further.

Note the following things before you open your Amazon shop:

  • You cannot avoid the commercial registration.
  • For your own products you need EAN numbers, which you can request from GS1 Germany.
  • Strict legal requirements must be complied with, especially for products that are subject to labeling.
  • You need your own terms and conditions, a data protection declaration according to GDPR and an imprint.

Open an enebay shop

eBay started out as a pure auction platform, but has now grown developed into a very important digital marketplace, where especially bargain hunters will find what they are looking for. You can also use yours here Bring products to many millions of potential buyers with little effort.

Registering as a seller on eBay is easy and done in just a few steps. You need a bank account, a PayPal account, an email address and go through a proof of identity. You can open your eBay shop as a small business or as a private seller. But note the business registration requirement if you intend to make a profit!

After logging in, you can yours create your own shop and choose from different variants, depending on the desired scope of services. The costs amount to a monthly shop fee and sales commissions.

Conclusion

E-commerce and e-sales offer good opportunitiesto start trading, even for newbies. Various e-commerce platforms are available, depending on your needs. Anyone who creates their own products or wants to start their own business can be successful with the right strategy.

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