Is eCommerce the right move for all businesses? That’s a loaded question. Statistics tell us that we’re crazy to have a business without an eCommerce component. It’s clearly foolish to ignore the 2.5 billion global digital buyers.
However, not all businesses are cut from the same cloth. Some may benefit from a complete eCommerce business model while others may benefit from a mixture between eCommerce and a traditional business model.
Nevertheless, eCommerce is the way of the future and customers expect the brands they love to incorporate some features of eCommerce in what they offer. Here, we define eCommerce as the buying and selling of goods and services over the internet. An eCommerce business can have one or a combination of these strategies:
- Business to Business (B2B)
- Business to Consumer (B2C)
- Consumer to Consumer (C2C)
- Consumer to Business (C2B)
These strategies support one of the following eCommerce revenue models:
- Business to Business (B2B)
- Direct Sales
A strong eCommerce business model relies on a detailed understanding of the eCommerce business strategy and revenue model. There are also several other components which, if used correctly, can prevent that business from being a part of the 80 percent of online stores which fail within the first 2 years. Choosing the right industry can also give an eCommerce business owner the upperhand.
Here are five of the thriving industries in eCommerce.
1. Internet and Communications Technology (ICT)
The very nature of the ICT industry makes it suitable for an eCommerce business model. App developers, widget creators, website hosting platforms, voice over internet protocol (VOIP) service providers and so on derive most, if not all, of their sales from eCommerce.
One of the growing eCommerce business ideas in the healthcare niche is an online pharmacy. Shoppers pay for convenience. In healthcare, it’s extremely convenient for customers to either visit a website or use an app to purchase medication that is delivered right to their doors. Statista reveals that the market size for the global online pharmacy market was $ 29.4 billion in 2014 and is expected to rise to $128 billion in 2023.
3. Food Delivery
Grub Hub. Door Dash. Uber Eats. Ringing any bells? These are names of a few of the US based food delivery companies. Customers are able to satisfy their cravings from the comfort of their homes or offices in a matter of minutes. All it takes is a few clicks. Statista estimates that about US $128 million has been earned from the online food delivery segment so far in 2020.
Blended learning is becoming the norm globally. Several secondary and tertiary level institutions offer a mixture of online and face-to-face learning opportunities. Some offer strictly online options. Therefore, students have flexible learning opportunities which fit their unique schedules. The global e-learning market was worth $165.36 billion in 2014 and is projected to be worth $325 billion in 2025.
Oftentimes, the first thing that comes to mind when considering eCommerce is a retail store. Dipesh Rai, a digital marketing specialist, estimates that there are between 12 to 24 million eCommerce stores selling products globally. Some sellers use platforms such as Amazon, Etsy and eBay to sell their products. Others have their own websites. Regardless of the platform used, nothing can refute the undeniable fact that selling products online is a billion dollar industry.
Most businesses benefit from incorporating eCommerce into their sales strategy. However, there are some industries which thrive using eCommerce. Five of these industries are: ICT, healthcare, food delivery, education and retail. Which other industries do you think should be included? Leave a comment below to share your thoughts.