Ecommerce Guide for Small Business Owners

The power of ecommerce for small businesses

There’s a reason for the abundance of online retailers – more accurately, there are many reasons the ecommerce market has long been booming. ecommerce is also one of the rare sectors that the COVID-19 global pandemic has helped rather than harmed.

Small businesses like yours should sell online, not just locally or in person, for the below reasons, and more:

• Demand for online business is booming. For several years now, consumers have been pivoting from traditional retail to online shopping. In fact, one forecast predicted a 12.8 percent increase in ecommerce sales by 2021 – and that was before the COVID-19 pandemic. Thereafter, online stores saw so much additional demand given lockdowns and brick-and-mortar closures that this figure was adjusted to 13.7 percent.
• Customers want convenience. Why take the time to go to and from a store when you could make the same purchase online from the comforts of home? That’s how customers often think, and it’s why adding ecommerce to your wheelhouse can increase your sales. Instead of losing customers who don’t want to, or are unable to, visit in person, keep them drawn to your products with a webstore.
• Ecommerce imposes virtually no limits on your customer base. When your product ideas reach solely your local market, you can only grow so much. With an ecommerce store, you can couple your in-person operations with a component that, theoretically, any internet user anywhere can access. Considering 59.5 percent of all people use the internet, that’s a whole new world of customers!
• You can communicate with your customers at any time. Your customer loyalty benefits greatly when your customers have easier access to ask questions. In fact, when customers can shop 24 hours a day, seven days a week, it’s almost expected that they can get answers rapidly. Tools like live chat, email replies, robust frequently asked question sections on your website, and self-help portals can help these customers make shopping decisions, even while you’re asleep.

Why you should care about ecommerce

It’s no secret that ecommerce is the future of shopping -- and that future is here now. But there are a few more reasons why you should care about ecommerce, including:

• It leads to more sales. All the above points can be combined into one key takeaway: Adding ecommerce into your mix boosts your sales. When you meet the demands of customers both in your backyard and far beyond, you give yourself more revenue opportunities. Plus, with the enhanced customer service that ecommerce can provide comes greater customer loyalty that leads to more sales.
• It allows for more diverse marketing tactics. Some marketing methods that online retailers often find successful might not yield great results for your brick-and-mortar business. However, the more channels through which you market, the more success you’ll typically find. For example, when you add an ecommerce option, you might see more returns on your email marketing. After all, email links can take customers directly to your online store, whereas they would otherwise need to travel to your in-person location.
• It enables sales-boosting subscription models. For business-to-consumer (B2C) companies, ecommerce has led to subscription-based plans that benefit both parties. The customer doesn’t have to remember to restock on their favorite product, while you can secure future sales from that customer. The result is a higher customer lifetime value (CLTV) that benefits your bottom line.
• It allows for several potentially disruptive business models. Let’s say you’re looking for another product to sell as part of a market expansion strategy. With ecommerce dropshipping models, you never need to stock any physical inventory of that product. Instead, just find a reliable, low-cost supplier with their own inventory, then add compelling product descriptions to your website. When you make a sale, buy the item from your supplier and have them ship the item to your customer – it’s that easy.

ecommerce business models

All online stores fall into one of six ecommerce business models. These six models are as follows.

1. Business-to-business (B2B). If your ecommerce business sells services to other businesses, then you run a B2B company. It’s also possible to be a product-based B2B ecommerce company, such as an online office supplies retailer. Either way, the same B2B marketing tips should hold.
2. Business-to-commerce (B2C). As explained earlier, B2C businesses sell products to individuals. A traditional in-person clothes retailer is a B2C retailer, as is that store’s ecommerce equivalent. It’s the most common ecommerce business model – after all, the internet is full of customers shopping for personal purchases. Mobile apps, retargeting, and customer loyalty initiatives can help drive B2C sales.
3. Consumer-to-consumer (C2C). Sellers on platforms such as Craigslist ® , Etsy ® , and eBay ® fall under the C2C umbrella. Typically, one person helms a C2C operation and sells products directly to other people. The aforementioned ecommerce platforms make starting these businesses easy, but they do nothing to control or analyze product quality.
4. Consumer-to-business (C2B). When a freelancer or sole proprietor with no employees finds clients through the internet, their business follows the C2B ecommerce model. C2B businesses often find work through online freelance marketplaces, potentially making traditional marketing less necessary.
5. Business-to-government (B2G). Technically, the government isn’t a business, but it does often seek the same services that businesses need. Any business that provides these services online to government agencies is a B2G ecommerce company. Notably, government agencies often require their vendors to sign contracts barring them from serving other parties until the contract expires. Though strict, these contracts are often highly lucrative, and they at least temporarily eliminate your need for marketing.
6. Consumer-to-government (C2G). A C2B online business that serves the government rather than private entities is a C2G ecommerce company. It’s the most narrow ecommerce business model, as it’s usually limited to consumers paying for government services or providing feedback to government agencies.