Full Guide E-commerce 2021
The development of e-commerce is increasingly rapid than year to year along with the existing digital developments. Even world-renowned e-commerce companies have entered the Indonesian market. Alibaba through Lazada and eBay have expanded business in Indonesia. Amazon is rumored to also do the same.
The government itself, through the Kemenkominfo launched so that in 2021 Indonesia’s e-commerce projections could reach 130 billion rupiah. Citing Catadata, Data collected by Nielsen titled “Indonesia Ocean Overing Overing Overcoming Dead Win and Riptide 2017” produces predictions of the Indonesian e-commerce market which will reach 52% of all e-commerce in the Southeast Asia region.
This is why, maybe you’re looking for a guide to running your intention to struggle in the field of e-commerce. But, before we discuss further about how to start your e-commerce company you should discuss first what is actually the definition of e-commerce.
Definition of e-commerce
The term e-commerce is an abbreviation for Electronic Commerce. Electronic Commerce is the process of buying and selling that occurs between business people and consumers without having to be in a physical store. So, buying and selling transactions that occur only take place through electronic media, more precisely online.
E-commerce activities take place supported by the existing qualified technology. These technologies are kind of smartphones, laptops, or other tools that can process online transactions and can run the Inventory Management System.
There are several e-commerce categories when based on anyone involved in the business process. Next, we provide an explanation for each of these categories:
- Business to Business (B2B)
The e-commerce category “Business to Business” was carried out between parties who were interested in running a business. Both parties usually know each other and know the business processes they do each. In addition, the E-Commerce B2B category is carried out continuously because each party benefits each other and has a sense of trust in each other. Examples of B2B business are when two companies as mentioned in the previous explanation held buying and selling transactions online, as well as payments made digitally (via credit cards and so on).
- Business to Consumer (B2C)
The “Business to Consumer” e-commerce category is a business carried out between business people with consumers as in general. The business done is a manufacturer selling products to consumers online. Here, the manufacturer will run a business by marketing its products to consumers without a response or response from consumers to do business again. The point is that producers only market products or services, while the consumers are only buyers or users. So, there will be no element of further cooperation and so on behalf of the “Business to Business” category.
- Consumer to Consumer (C2C)
The “Consumer To Consumer” e-commerce category runs buying and selling transactions where the barter system applies between consumers. The consumers involved can sell each other’s products. For example, consumers of a manufacturer will resolve products to other consumers.
- Consumer to Business (C2B)
This “Consumer to Business” category is a business between consumers and producers with the initiative of one of the parties who seek or need first. The business is carried out by consumers to producers who sell products and services. For example, consumers first inform the product details or services desired or needed online to the producers. Later, some manufacturers who know the existence of these requests will offer products or services to the consumers.
Types of e-commerce activities
Here are some types of e-commerce activities that generally occur:
- Online Shopping (Online Shopping)
The simplest and easy-to-understand example related to e-commerce is expenditure through the internet or what we usually know as online shopping. The shop is made virtually or online and usually offers a lot of variations in his shop compared to the usual physical store around you. It could be that a company has both, virtual and physical stores but usually more variations in their virtual stores. Usually, companies that only have a virtual store intend to reduce the cost of installation of physical stores that cost very large costs for purchases or rental places and others.
- Electronic Payment (Electronic Payments)
This one payment system can apply to anything including transfer of product costs, telephone bills, internet bills, and others. Related to transactions carried out digitally, the aspect of cyber security is very important to note. For those of you who make payments from laptops or computers, try downloading a capable security application so that your transaction runs safely without interruption of hackers. A regular credit card burglary occurs through an electronic payment carried out by the customer. For those of you company managers or online stores, you can help your customers by reminding the importance of Sibernetic security and how tips that can be done to avoid the cyber crime.
- Virtual Auctions (Virtual Auctions)
This e-commerce activity is popularized by eBay. Ebay allows customers to buy and sell at a very profitable price of both parties. This is due to the bargaining process that occurs before the best price is agreed together.
- Digital Bank Transactions (Internet Banking)
E-commerce has allowed people not to bother to make regular visits to physical banks. So, people can do their daily banking activities online through applications provided by their respective banks. The banks in Indonesia claim to be able to provide safe banking services with applications provided for their clients.
- Buy and Sell Online Tickets (Online Ticketing)
Ticketing at this time, all kinds of ticketing carried out by people is done online through the internet. This activity includes the purchase of transportation tickets such as planes, buses and trains. In addition, it also applies to purchasing tickets to watch sports and film matches. This is actually very beneficial for people so they don’t need to wait for a long line.
Distribution type on e-commerce
In e-commerce activities there are various ways for retailers in offering their services. Some of the methods or methods we explain as follows:
- Pure Click
In the “Pure Click” distribution method, the retailer sells only through the virtual location, without Physical Storefront.
- Brick and Click
In the “Brick and Click” distribution method, from the beginning of the Retailer business formation already has both types of stores either virtually and the location is physically.
- Click to Brick
In the distribution method “Click to Brick”, the retailers start their business with the online store or virtual store but then develop it by making a store that is physically on location. The physical store is made as a supplement for their online business.
Prepare your e-commerce
The first thing you can do to start is to develop your business idea. Here are some of its development steps:
- Identify your product
Try to identify your product. Associate this identification with anything that needs to be considered. All aspects include distribution of goods, storage areas, product variations later, mechanism for making products and so on.
- Create your innovation
Even though you have known clearly the product you offer later and how you can sell it, it is very important for you to make it different from the products of your competitors on the market. Customers need the uniqueness of the product you can offer in terms of choosing which product among the like products. Or, if you can’t provide the uniqueness of the product, at least the quality of your product is superior to competitors.
- Test your market and identify your niche
To test your e-commerce business, you can first sell your product on existing buying and selling platforms. This way, you can judge how much the market is enthusiastic about the items you offer, how their response. It is also done to help you understand anyone who buys your product so that your segmentation is visible.
- Prepare your website
There are a number of things you need to pay attention to related websites, namely domain names, fast and secure hosting providers, Dedicated IP Addresses, Private SSL Certficate, Shopping Cart Scripts, and Payment Gateways sort of Paypal.
Usually, a good provider will guarantee your website is not down during a web visitor density. In addition, they are also able to help you take care of the domain and SSL certificate for your website. Froggyads himself can facilitate your work when building the e-commerce. You just contact us to find out more info.
Problem, blog. Maybe you are confused about whether your website needs a blog. We advise you to make it because of some benefits that can be produced from the blog. First, blogs can be a communication channel and can increase your customer engangement. It could be that people who are finding out about certain info find your blog and then interested in reviewing your products based on the posted content on the blog.
The next benefit of the blog is credibility. As we do now through blogs, especially our articles. When you pay attention, there are many of our articles that are made in depth and informative where this can actually show how our experts are in fields related to our products or services. You can also do the same.
Finally, for us blogs is a great way to attract your traffic website. If you consistently manage your blog and produce quality content, you can lead visitors to your website through the search results for a sorting machine like Google.
- Do SEO techniques for your e-commerce
SEO stands for Search Engine Optimization. There are many ways you can do to do it for the sake of achieving the maximum e-commerce. You can read the articles that we have made before discussing SEO specifically for e-commerce. In addition, you might be interested in advertising on the search results page from a sorting machine like Google so that your visitors are a lot. Visitors can be your potential potential customers who buy services and products that you offer.
Advantages and disadvantages of e-commerce
There are several advantages and disadvantages that you can if you run e-commerce. Next, we will give a few points!
- Save time in transactions, no need to wait long or lece like a traditional business that generally occurs
- It makes it possible to transact with companies or stores that are far away, even cross continents
- Do not require major preparation and investment in opening the store physically
- There are many choices available, this is related to the variety of products offered
- There are no restrictions or prohibitions related to shopping time for customers, people can shop whenever they want
- With the internet as a media link, every business person can freely sell to each other through various platforms that make it easy for many available
- Related to digital products, purchases can take place instant and need not wait for a long time for the shipping process
- There is no space limit here, you can display items in the online display as much as any item you want (according to the storage location, of course), this also means the more variations compared to the physical store.
- There is an urgent demand from the customer or prospective customer where all must run very quickly and safely, then fast and safe internet services are needed
- There is also a device requirement (gadget) that is able to provide access to the online store itself, users can access it via a smartphone or laptop
- Experience shopping with e-commerce for customers feels not personal or less emotional, it can be less satisfying like direct transaction transactions
- On e-commerce there is no chance to touch or try the product before the transaction has been done and the item has arrived at hand
- There is a dangerous risk that arises such as credit card burglary or data theft related to cyber security
- To be able to use products, customers or customers need to wait until the item arrives so there is a delay not like the purchase of goods in the Physical Store that can be directly used
- There is also the possibility that the parties who transact are confused because differences in different buying and selling legal depending on their respective locations
Through this article, you have got a useful guide that you can make fundamental information in starting your e-commerce business. We not only define what e-commerce for you, we also provide comprehensive knowledge of e-commerce. Useful info such as the following e-commerce categories, how to start building it and what we have advantages and losses have been described for you.
Basically, mature business planning is the main thing that is important in building your e-commerce business. It also includes identifying your products and markets and testing it. If you are serious about your e-commerce, it should be considered to create your own website and manage it so that it maximizes your sales. Hopefully this article helps!