When it comes to making money online, one avenue you cannot ignore is ecommerce. Billions of dollars are spent online every quarter, and as more online shopping options become available, and as shipping gets faster, that number will only continue to grow. There has never been a better time to monetize in this way, and we are going to show you how to do it.
Ecommerce refers to all business transactions that are conducted electronically. While we tend to think of this as buying and selling online, it includes other types of business transactions as well. Some common forms of ecommerce are online retail shopping, online auctions, online ticketing, online banking, and online payments.
Ecommerce transactions are classified based on who the participants in the transaction are. There are three primary ecommerce classifications.
B2B: Standing for business to business, this type of ecommerce involves a transaction between two businesses.
B2C: Standing for business to consumer, this type of ecommerce involves a transaction between a business and a consumer.
C2C: Standing for consumer to consumer, this type of ecommerce involves a transaction between two consumers.
Depending on how you approach monetization through ecommerce, your model should be either B2B or B2C. C2C is less common and is mainly found on auction sites, such as eBay.
When comparing ecommerce to selling in an actual storefront, there are significant benefits. For one, your customers are not significantly limited by geographic location. If you are shipping goods, you might need to consider limited customers to those in the country where you reside. However, if your goods are downloadable or you offer an online service, literally anyone could be your customer.
The costs are also a significant improvement. Since you do not need to pay rent on a storefront or worry about the extra bills that come with that, you can keep costs low, passing the savings on to your customers, making you more competitive.
Also important is that it saves you time. There is no commuting and you can really work your business around the rest of your schedule.