An online shop evokes the physical analogy of buying products or services at a regular “bricks-and-mortar”retailer or shopping center; the process is called business-to-consumer (B2C) online shopping. When an online store is set up to enable businesses to buy from another businesses, the process is called business-to-business ( B2B ) online shopping. A typical online store enables the customer to browse the firm’s range of products and services, view photos or images of the products, along with information about the product specifications, features and prices.
Online stores typically enable shoppers to use ” search ” features to find specific models, brands or items. Online customers must have access to the Internet and a valid method of payment in order to complete a transaction, such as a credit card, an Interac-enabled debit card, or a service such as PayPal. For physical products ( e.g., paperback books or clothes ), the e-tailer ships the products to the customer; for digital products, such as digital audio files of songs or software, the e-tailer typically sends the file to the customer over the Internet. The largest of these online retailing corporations are Alibaba, Amazon.com, and eBay.
Benefits of selling online
Selling online has a number of advantages over selling by traditional methods, including:
Making savings in set-up and operational costs. You don’t need to rent high street premises, pay shop assistants or answer a lot of pre-sales queries.
Reducing order processing costs – customer orders can automatically come straight into your orders database from the website.
Reaching a global audience, thereby increasing sales opportunities.
Competing with larger businesses by being able to open 24 hours a day, seven days a week.
Being able to receive payment more quickly from online transactions.
Attracting customers who would not normally have investigated your type of high street outlet.
Improving your offerings using the data gathered by tracking customer purchases.
Using your online shop as a catalogue for existing customers.
Online selling will work best if you have:
well-defined products or services that can be sold without human involvement in the sales process
fixed prices for all types of potential customers
products or services that can be delivered within a predictable lead time
Many businesses can run pilot e-commerce sites without significant investment. However, creating a fully automated online shop tailored to meet your precise requirements could be expensive.
Whatever form of online shop you choose, it’s important to take a strategic view. If you launch a website that disappoints your customers or is overwhelmed by traffic, you risk damaging your reputation and losing sales
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