E-commerce a long-term solution?
In a context of globalization characterized by the acceleration of commercial and financial exchanges on a global scale thanks to the development of information and communication technologies, e-commerce occupies a growing place in the sales market. This trend is expected to intensify in the years to come, due to changes in consumer habits caused by crises such as the global health crisis of Covid19. Today, 85.5% of French Internet users order on the Internet. The e-commerce market is thus experiencing strong growth with an increase in annual sales of 11.4% between 2018 and 2019 according to FEVAD. Because of this, the majority of merchants or future entrepreneurs plan to start or expand their business online . This trend appears to have intensified due to the constraints of the COVID crisis that have brought telecommuting and online ordering to the fore. E-commerce has totally upset the rules of traditional commerce, without for the moment dethroning the latter. We are now talking about an increasingly connected trade where the synergy effects between the two are numerous. The temptation to engage in online sales is growing for many brands.
- So, how does e-commerce upset sales codes within companies and prove to be an essential need?
What is e-commerce?
E-commerce, or electronic commerce, is defined as the remote pecuniary exchange of goods, services and information via computer networks, in particular the Internet. In other words, it is a commerce that manages the transaction of goods and services between a buyer and a seller. This concept thus refers to the management of the means inherent in this mode of consumption, from the management of payments using electronic means, to the delivery methods offered to Internet users. E-commerce essentially encompasses commercial transactions that take place on the Internet from different types of terminals on e-commerce sites or commercial mobile applications.
- computers
- tablets
- smartphones
- consoles
- Connected TVs
Mobile has indeed become an essential medium for e-merchants, since it is the one that generates the most visits at 42%. However, the computer remains the means favored by Internet users to make their purchases at 63%. Although they are not the channel bringing the most visits or conversions, social networks remain for Internet users a privileged means of unearthing new products.
- Pinterest is clearly doing well: 55% of its users say they use it to find and buy products
- Facebook is only 12% but tends to improve in the sector
- Instagram with its 12% is also trying to grow by offering new features.
In just a few years, e-commerce has become the main channel for “ distance selling ”, which explains the replacement of the term “mail order”. According to FEVAD, e-commerce represented only 10% of retail trade in 2019. However, e-commerce only covers part of the challenges of Internet commerce because the presence of companies online also influences purchases made at points of sale or through other channels. Nevertheless, still according to FEVAD, the turnover of French e-commerce amounted to 103.4 billion euros in 2019 with an average basket of 60 Euros, an average of 33 online purchases per year , the all thanks to a network of more than 200,000 merchant sites. Thus, the main areas of online shopping are in the tourism sector at 44%, cultural products at 43% and finally home textiles.
Why is e-commerce an attractive sector?
E-commerce is thus a major opportunity for consumers. Often, online orders are perceived as faster , but also practical thanks to the accessibility of the site 24 hours a day and comfortable since it saves customers a trip, and they are not in a hurry to make their purchases. Internet users also think this mode of consumption is cheap because it makes it easier to compare the different products and platforms, the choice of which is increased on the Internet. Many sites such as the giant Amazon also offer a return in the event of a problem with the product, a security that reassures consumers.
E-commerce is also a huge challenge for businesses. Beyond a large and rapidly growing market, this sales method has decisive advantages:
- Reduce fixed costs : with the aim of increasing margins.
- The advantage of scalability : in an e-commerce, unlike a physical store, it is possible to sell to an unlimited number of people at the same time.
- Expanding the target : Being able to buy and sell from anywhere in the world makes it possible to obtain more customers.
- Collect data on consumers: allows you to identify consumption patterns and preferences in order to improve customer relations and offer products, services and above all communication adapted to your audience, which will increase sales .
However, e-commerce remains a challenge for businesses. Indeed, it comes up against difficulties such as the lack of confidence of Internet users : although gateways and means of payment have made enormous progress and are now as secure as in physical stores, many people continue not to fully trust online transactions. Another disadvantage encountered is dematerialization , since customers can neither see nor touch the products they are interested in, which often hinders their purchase. In addition, the dependence on the Internet connection as well as the possible technical difficulties complicate this method of sale. Finally, competition is increased online since the economic barrier of entry to create an e-commerce is not as high as for a physical commerce and above all, acquiring visibility requires more time than for a physical commerce which, as soon as it opens its doors, is noticed by passers-by.
How to get started in e-commerce?
According to INSEE, more than 500 companies are created in France every day, but the majority are created without having defined a strategy beforehand, which explains why 65% close in less than 3 years. There are several steps in launching your e-commerce project. Once the idea of a service or product to sell has been completed, it is necessary to analyze the challenges that will emerge during this online adventure . For this, it is advisable to call on an expert, often a consulting firm, but also a Junior Enterprise.
Indeed, ESCadrille Toulouse Junior Conseil offers strategic support and action plan development services in order to guarantee long-term support. Indeed, using a junior firm is considered advantageous in the field of e-commerce since the customers who order the most on the internet are under 35 years old, they can therefore be receptive to the innovative ideas of our consultants, which will allow an online platform to distinguish itself from its other competitors thanks to services that exactly meet the needs and uses of its consumers. We thus offer a consulting service in major decisions such as the business model of the company:
- marketplace
- dropshipping
- services
- affiliate e-commerce
But also the methods of payment, delivery or even the type of customer service to be preferred, knowing that these criteria are the most decisive in the choice of one platform rather than another for a customer, but also in the loyalty process. .
In addition, ESCadrille Toulouse Junior Conseil benefits from 42 years of experience in marketing and offers a methodology that is as solid as it is precise, but above all knows how to adapt to the needs of each project. Indeed, it seems essential to identify the target of an e-commerce project in order to propose the offer, the design of the platform as well as the methods of communication as close as possible to the potential clientele . It is with this in mind that ESCadrille Toulouse Junior Conseil offers web-marketing services. The objective is thus to guarantee the viability of the project so that this enterprise is a success. To find out more, discover our solutions.