E-Commerce Strategy Training
E-commerce involves activities that relate to the buying and selling of goods and services over the internet – this can also be the transmitting of funds or data over an electronic network (primarily the internet).
These business transactions occur either as business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business – the terms ‘e-commerce’ and ‘e-business’ are often used interchangeably.
E-commerce initially focused on simple bookselling online and evolved into the modern era of selling pin to anchor (purchasing the smallest perishable items to the largest, multi-year investments like household appliances); financial services; digital goods; subscription services, and so on.
People love to shop, and advances in online retail now let consumers shop anytime, anywhere.
This access is unprecedented – and not just for shoppers; retailers also have 24/7 access to their consumers.
As a result, e-commerce has transformed the business model and changed how shoppers approach retail.
Despite its momentous effect on shopping behavior, e-commerce is far from revolutionary; it’s simply an evolution.
Many retailers and manufacturers have simply recognized the opportunities created by new technology.
Effective e-commerce involves:
Getting a defined audience to your website using targeted advertising; this shows the extent of the effectiveness of the advertising.
Showing them the ideal product at a suitable price on an optimized site; identifies the right price that a customer will be willing to pay.
Offering them optimal service levels; providing support the way a customer would like.
Securing payment; giving an optimal payment solution.
Characteristics of successful e-commerce sites:
A picture really is worth a thousand words.
Market your site once it’s live.
‘Total conversion rate optimization’ asserts that everything you do in e-commerce should be designed to drive conversion, including:
Shopping cart design
Merchant you use to make available local payment methods
Your returns policy
Your customer service response time
Define your value proposition, and then your revenue model.
Determine exactly what you are going to sell and how you intend to make money.
Ensure you define what gives your offering a competitive advantage over your competitors.
Choose the appropriate e-commerce platform and put in place the appropriate logistics and infrastructure.
With so many e-commerce platforms and marketplaces, it’s important to choose the right one to gain maximum traction.
Ensure you choose an e-commerce platform that provides you with sufficient backend analytics to drive sales.
Choose the channels you will sell through (such as the marketing, your design ethic and so on).
Gaining awareness is critical and therefore determining your marketing approach is key to being successful across an e-commerce platform.
Consider how best to reach your priority audiences and then target them using the most appropriate channels.
The E-Commerce Business Model
Ensure you create an effective e-commerce business model by defining your audience, showing them the ideal product, offering optimal service levels, and having a robust payment solution.
Total conversion rate optimization asserts that everything you do in e-commerce should be designed to drive conversion.
Generate a holistic value proposition, including the logistical requirements.
Consider the various pros and cons of a bespoke versus hosted solution.
You can develop an e-commerce site in-house, or use a third-party one.
Managing E-Commerce Logistics
Logistics can be used as a differentiator and as a tool to convert customers.
Warehousing options include self-managed, outsourced, and drop-shipping solutions. Each solution offers a different level of control of the logistics process.
Ensure the appropriate packaging for the item.
Role of a purchasing function is to ensure that the right product comes into stock at the right time and price.
Inventory management is key.
Setting Up E-Commerce Payment Methods
An online payment method allows buyers to use a credit card or electronic bank transfer to pay for goods or services purchased online.
Common settlement terms and costs are involved in a contract with a payment provider, and the standard terms to negotiate for a better deal.
There are a variety of payment methods in each market you wish to serve so check before picking a provider to suit that particular market or territory.
You must link payment acceptance to your accounting software of choice.
Managing E-Commerce Customers and Legal Guidelines
Poor customer service adversely affects an e-commerce business.
You can integrate customer service platforms with CRM platforms.
There are a number of legal and value proposition factors driving policies for returns, refunds, and replacements.
Adhere to legal cross-border requirements.