Retailers have seen a sudden shift in operations over the last 20 years or so. With the world suddenly becoming more interconnected, and with surges in modern technology, it’s now possible for anyone with an internet connection to buy or sell goods online any time they like.
In the world of online business and shopping, there are some modern terms that you might want to get familiar with—one of these is the idea of an ‘ecommerce retailer.’ But what are ecommerce retailers exactly? If you’re wondering about this question, then you’ve come to the right place!
In this article, we’re going to take you through everything you’ll need to know about this concept and how it can affect your shopping experience or business! We’ve also included a short Frequently Asked Questions section that will help to answer any other questions you might be having.
What Are Ecommerce Retailers?
An ecommerce retailer refers to a retailer (a person or a business) who sells goods to the public online. The ‘e’ part of this world is short for ‘electronic,’ so when we say ‘ecommerce,’ all we mean is a retailer that operates over the internet. It’s sometimes synonymously referred to as ‘internet commerce,’ and operates in a simple manner.
If you’re new to this concept, you should know that transactions happen in the same way as they would in real life. A customer will browse through an online store, select the product they’d like to buy, and then pay via credit/debit card or with an app like PayPal. This makes buying and selling things easy, and over the last few years, it has become streamlined and simplistic.
So then, an online retailer is an individual or company that operates primarily through the internet. In today’s climate this is a completely reasonable (and potentially profitable) way to conduct business, and many companies are prioritizing this over physical stores. Sites such as Amazon are incredible marketplaces that allow companies to promote and sell their products with quick delivery.
The 4 Types Of Ecommerce
There are three main forms of ecommerce that we can examine. Each one is slightly different, but all of them are important to consider when looking at this subject. Let’s take a look at them below:
This is a selling practice for online goods or services from one business to another. If you consider conventional wholesale services for food products, these would operate through a shop or restaurant going to the place and picking up all the ingredients they need.
There are also physical wholesalers where you can make orders via telephone. Business-to-business wholesalers would instead conduct all of their orders and deliveries online, a practice many companies find much easier and more streamlined.
Consumer-to-Consumer ecommerce is the practice of buying and selling items that have already been purchased from a company. So let’s say you have a whole section of your wardrobe that you no longer wear and are still in good condition.
You might think about selling them. In the past, you’d have to rely on word of mouth or ads in a newspaper or magazine. But these days you can easily list them online and have another consumer buy them off of you. You’ve probably heard of eBay and this is a perfect example of consumer-to-consumer services.
Business-to-Consumer (often abbreviated to b2c) is the most simplistic form of ecommerce. A business will list its products on its website or online store, and consumers can browse and buy.
This is quickly becoming the preferred method of purchasing goods online as it’s quick and easy. The main downside for consumers is that they don’t get to physically see the product before it’s delivered to them, but this is why many companies have lenient return policies.
This is the least common form of ecommerce but it is becoming more popular with the rise of online influencers and servicepeople.
Consumer-to-business commonly occurs when a company wants to buy the services (or occasionally, products) or an individual but does not want to absorb them into their company to do so. For example, a YouTuber uses their platform to promote a company and gets monetary sponsorship in return.
Is Ecommerce The Right Choice For Your Company?
Ecommerce can be a great choice for your business as it allows you to make your goods and services available to a much larger audience. To go a little further into this, we’re going to look at the differences between a small business and a much larger one.
- Small Business: Let’s say you have a passion for making necklaces by hand. You’ve gotten pretty good at it and you’re looking to start selling them. To do this you can easily set up an online store by using a platform like Shopify, which will do the hard work for you and allow you to start selling right away. Many modern, small businesses operate entirely online and it can be a great choice for you.
- Large Businesses: The truth is, if you’re a large business then you probably have some kind of experience with ecommerce. In today’s modern world it’s a vital part of becoming successful, as many customers expect an online store to easily buy products. There are lots of options you have here, and this does depend on the product you’re selling. However, the larger the business the more difficult it is to set up the infrastructure needed to deliver goods and services to the comfort of your customer’s homes.
So there you have it! An ecommerce retailer is simply a company that conducts a retail operation through the internet. We hope that this article has explained everything you wanted to know about them and that you’re now more confident with the topic. If you still have some questions, make sure to check out our FAQ below.
Frequently Asked Questions
What Are The Main Benefits Of Ecommerce?
The main benefits of ecommerce include a faster buying process, cost reduction due to not having to run a physical store, total flexibility for customers, advertising and marketing that connects directly to the place where the customer will buy the product, and much more.
What Are The Most Popular Ecommerce Companies?
Some of the most successful ecommerce companies (as of 2022) are Amazon, Rakuten Japan, eBay, and Samsung. All of these companies are making huge sales and the online aspects of their businesses can be considered the key to their success.
Paul Martinez is the founder of EcomSidekick.com. He is an expert in the areas of finance, real estate, eCommerce, traffic and conversion.
Join him on EcomSidekick.com to learn how to improve your financial life and excel in these areas. Before starting this media site, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.