E-commerce: learn how to increase profits by selling online

E -commerce has become one of the most popular business models for marketing products and services, and there’s a “why” to it: the ease of selling to anyone — anywhere in the world — without necessarily having a brick-and-mortar establishment.

This guide was created to clarify all doubts about e-commerce and show, in a simple way, how it is possible to reach a greater number of customers and guarantee more sales through the internet.

Table of Contents

What is e-commerce and what is it for?

E-commerce, or electronic commerce, is a business model that uses only the internet to sell products or services. In other words, the company uses the virtual environment to display its merchandise, attract the attention of potential customers and calculate sales made online.

How does e-commerce work?

E-commerce works like a large digital showcase. Users browsing the internet can access the channel chosen by the brand to check out all the products and services for sale.

If any of the items is of interest, the consumer is free to insert the product he wants in the cart, update the delivery address and make the payment. All in a few clicks, from a mobile device.

Types of e-commerce

Currently, there are 7 types of e-commerce that formalize the purchase and sale of products and services over the internet:

B2B (Business-to-Business): in which companies sell to other companies, such as suppliers, distributors and resellers;
B2C (Business-to-Consumer): in which companies sell directly to the end consumer;
B2E (Business-to-Employee): in which companies sell products or services directly to their employees;
B2G (Business-to-Government): in which companies sell products or services to government bodies;
C2B (Consumer-to-Business): in which consumers offer products or services to companies;
C2C (Consumer-to-Consumer): in which consumers sell products or services directly to other consumers;
G2C (Government-to-Consumer): in which the government offers services or products directly to the final consumer.

The choice of e-commerce will depend on the field of activity and the initial objective of the company or entrepreneur.

How has e-commerce changed the market?

Before e-commerce, entrepreneurs who dreamed of selling their products and services had only one alternative: to open a physical establishment where they could display their goods, interact with the customer and do the marketing.

The problem with this business model was that the bureaucracy to open and maintain the store limited the dream. Many did not have enough resources to rent a part, start operations, invest in marketing strategies, or maintain a considerable volume of inventory .

However, with e-commerce the scenario has changed dramatically. Entering the market has become much simpler because the internet does not require a physical space, and what previously required time, effort and high investment has become a profitable, accessible and low maintenance business model.

In addition to the businessman, the consumer was also impacted by the new commerce model. The variety of online products and services, the price offer and the agility in the purchasing, selling and delivery processes enchanted customers, helping them to change behaviors, preferences and needs.

E-commerce and virtual store: what’s the difference?

E-commerce and virtual store are terms that tend to be very confusing because they are both related to the internet. However, there is a difference.

The term “e-commerce” is broad and deals with the sale of products or services over the internet, while “virtual store” refers exclusively to an online platform — developed specifically for the company — that allows the sale of these items.

As it is a space, the virtual store includes resources such as a product catalog, shopping cart, payment system, among others. In other words, it has all the components of a normal store.

E-commerce, in turn, can include not only the virtual store, but also other online sales channels, such as marketplaces, social networks and even messaging apps.

What is the E-commerce Law?

With the popularization of e-commerce, it was necessary for laws to be applied to protect consumer rights and promote transparency and security in online transactions.

The E-commerce Law, sanctioned on March 15, 2013, works as an extension of the Consumer Protection Code (CDC), but aimed at the digital universe. Therefore, it covers topics ranging from:

Deadline for using the offer
Discrimination, in the price, of any additional or accessory expenses
Respect for the right to repentance;
Between others.

Since it came into force, every company or entrepreneur who wants to operate in the digital environment needs to follow Law 7,962/2013 to regulate their activity.

Advantages of e-commerce

The great advantage of e-commerce is that the company can sell its products to anyone, anywhere in the world, without having to have direct contact with them. This means you can expand your reach, guaranteeing much higher financial returns than in a traditional store.

However, there are other benefits:

Cost Savings

The company does not need to worry about paying rent, maintaining a large workforce or investing in physical infrastructure. You can control and carry out your store’s operations virtually, which minimizes costs .

Access to new markets

There are no barriers on the internet. The company can identify more business opportunities , enter new markets and reach a significant audience of people, which was previously limited due to geographic issues.

Flexibility and convenience

The merchant can manage his store’s operations from any place and time, simply by having a mobile device with internet access. This flexibility contributes to more active management, which allows professionals to identify bottlenecks and opportunities faster.

Customization

The company or entrepreneur can customize its business model according to its demands and needs. Payment methods, service channels, marketing strategies, logistics. You can select the options that match the real situation of the store and customer profile.

Data analysis

By involving digital channels, the entrepreneur is also able to monitor market metrics regarding accesses, sales and returns. The data is useful for validating the assertiveness of marketing strategies, as well as helping to develop new actions to increase sales and retain more customers.

E-commerce trends

E-commerce began to gain prominence in the 90s, and since then it has undergone a series of redesigns to keep up with the changes caused by technology . This year, it will be no different. Below, we have selected some of the main trends for e-commerce in 2023:

Mobile e-commerce

With the advancement of smartphones, consumers are expected to increasingly use mobile devices to buy and sell products. Companies must, therefore, focus their strategies on offering mobile applications and channels to meet this new behavior.

Use of artificial intelligence

Artificial intelligence will be used even more for data collection, analysis and interpretation. Entrepreneurs will be able to use this technology to learn more about the customer profile, understand behavior and better target strategies. AI will also play an even more important role for customer service and after sales.

Personalization and user experience

Companies and entrepreneurs that want to stand out in the digital environment will need to offer competitive differentials. These can involve personalization of service, even strategic actions and promotions to improve the user experience.