This Ecommerce Business Models and Marketing Strategies is a radio interview topic between Engineer Paul Nwokedi and Naomi James; presented at Jordan 105.5 FM, Lagos.
First, What is Ecommerce?
Electronic commerce; also known as Ecommerce is the buying and selling of goods or services via the internet. It involves the use of online payment systems and data to communicate a business the sales.
What does the term: Ecommerce Model Means?
It is different ways individuals and companies can use the internet technologies to market our goods and services. For example, here are few variations of how e-commerce business models you may want to consider if you are planning to take your offline business or brick and muter store online.
There are 6 Variations of e-Commerce Business:
- Social commerce
- Mobile commerce
- Business directorylisting
- Business to Consumer (B2C) Ecommerce template
- Classified online advertising
- Online marketplace
How Can One Start e-Commerce Business?
- First, Register a domain name or web address that suits your niche
- Build a solid ecommerce website with mobile friendly and user security in mind.
- Hire a professional ecommerce development and digital marketing company like Abbakin that would help you stand out and increase sales.
What are the Best Types of Products to Sell Online?
- Simple or physical products
- Virtual products like services
- Downloadable Digital products like music files and videos
- Variable products like fashion and other products with variable sizes, weights and colors.
What are the Types of Ecommerce Selling Approaches?
- Sell as a Retailer: Here, company can sale their products directly to consumers without distribution channels or intermediaries.
- Use Dropshipping: This is the sale of products that are manufactured and shipped to consumers via a third party.
- Mini-Importation: Here, seller can ship ordered products from manufactures or factories in China, Japan, UK and USA.
- Sell as Wholesaler: Products sold in bulk. Wholesale products are usually sold to a retailer, who then sells the products to consumers.
- Use Member Subscription: Here, subscription services are the recurring purchases of products or services on a regular basis.
- Use Crowdfunding: Crowdfunding allows sellers to raise startup capital in order to bring their product to the market. Once enough consumers have purchased the item, it’s then created and shipped.
- Use Promo Coupon codes: Here, seller can promote his or her products by giving our percentage discount to first or return buyer. This can also come as seasonal sales like Black Friday or Christmas sales.
What are Benefits of Ecommerce Business Model
- It’s cheaper to run: One of the biggest advantages of ecommerceto businessis cost reduction. In today’s economy, many sellers and entrepreneurs find it difficult to pay shop rents and other maintain fees for their physical store. Most especially, the cost of ruing a business in Nigeria is also very high.
- Convenience for customers: Today customers are very busy. Thus, they prefer flexible means of shopping for their domestic products, electronics, phones and glossaries. With ecommerce business model, companies and marketers can provide their products and services for sale to customers on the go, in their pocket or at home.
- Easy Product and price comparison: With ecommerce, buyers can easily check product features or specification; and compare products prices online ecommerce using tools. So eve4n if you are not selling online, they already know the price or cost of the products or services even before coming to your physical shop.
- No consumer reaching limitation: Indeed, sellers with physical stores would, not be able to reach a certain number of buyers. They can deliver to the customers within their store location. Thus, there is this distance limitation. While several e-commerce websites and marketplaces have their own logistics and delivery systems, they have the opportunity to reach a worldwide audience.
- Faster response to customers’ demands: Ecommerce Business Model offers 24×7 availability and customer support. They offer buyers a streamlined logistics or delivery system. And manage Products returns quickly. So, you either get your money refund payments or product replacement.
- Flexible payment options: Most ecommerce businesses provide flexible payment methods for convenient online shopping experience. They use online payment options like secure cards payments using Visa Cards, Verve Cards, or Master Cards. They also offer Cash-on-Delivery (COD) payment option for customers who prefer to pay cash payment at points of orders collection.
What are the best ecommerce marketing strategies to use?
- Optimize your products for Google search using SEO.
- Include Reviews and social share buttons on Product Pages
- Use content marketing and guest posting
- Market on social media networks like Facebook, Twitter, Instagram, YouTube, etc.
- Use influencers to build trust, visibility and increase products sales
- Start email marketing and mobile messaging
- Use Google Adwords and other pay per click advertising tools
- Use sales tracking, analysis and conversion tools
What are the Factors Affecting Ecommerce Business in Nigeria?
- Lack of trust
- Online frauds
- Copyright violations
- Logistics Problems