By definition, ecommerce is a business conducted electronically using the internet. It is also called electronic commerce or internet commerce. The ecommerce industry has recently evolved with increased internet accessibility across the globe. Many people have invested in ecommerce platforms to release good returns in a matter of weeks.
Some of these entrepreneurs use the 20% letter to gain insights on the best e-commerce assets to invest in for guaranteed returns. Many e-commerce platforms make a prime prospect for any entrepreneur looking to start a business or an investor looking to put their money to work. Let’s look at the types of e-commerce and different companies within each category that can make you money through returns on investments.
There Are Three Kinds of E-Commerce Available To Users;
1. Business to Consumer (B2C)
B2C e-commerce is the exchange of goods and services from businesses to clients. This industry served clients from all walks of life and was worth about $3.67 trillion in 2020. The market is expected to maintain a consistent growth rate of 9.7% annually between 2021 and 2028. This growth curve is supported by the increase in disposable income expected in the coming decade.
The most robust niche in the B2C e-commerce industry is the smartphone and tech gadget niche, further propped up by the increased penetration of internet services to more areas. Most importantly, the increased dependence on digital services significantly contributes to forecasted growth over the next few years.
Another contributing factor to the expected growth of B2C e-commerce is the increased convenience of online shopping and purchasing. The tech industry makes it easier to access numerous goods, services, and information that would otherwise be beyond our reach. Wise entrepreneurs can use this predicted growth to invest in tech industries.
2. Business to Business (B2B)
As the name suggests, business-to-business e-commerce happens between two business entities. They usually sell and purchase products or services. Businesses may buy products to resell or as raw materials for a manufacturing process.
The B2B e-commerce industry was currently worth around $7.35 trillion in 2020. Experts estimate the market will grow to about $18.75 trillion in 2026. These numbers suggest businesses will likely increase online purchases and other transactions in the coming years.
The retail and wholesale industry makes up a significant portion of all B2B e-commerce transactions, which makes it a prime niche for investors and entrepreneurs to invest in. Thanks to e-commerce, buyers can generate orders through digital procurement systems like EDI software (electronic digital interchange).
On the flip side, B2B digital marketplaces are quickly gaining popularity in this e-commerce category. This growth is fueled by their ability to provide more customized and flexible supply for businesses, adjust to demand levels, and provide an interactive customer experience.
3. Consumer-to-consumer (C2C)
The C2C e-commerce industry is arguably the most underestimated investment avenue. This category involves selling goods and services from one consumer to the next. Platforms that support this e-commerce model include Etsy and Craigslist. These platforms give the consumer an upper advantage when it comes to price. Consumers are more likely to set competitive prices and offer more value by cutting out intermediaries.
The C2C e-commerce industry will be valued at about four billion dollars in 2028. Annual growth rates are estimated at around 28.4%, according to Bloomberg. The driving forces behind C2C e-commerce include an increase in internet connectivity and increased ease of communication between people in different parts of the world.
In addition, end-to-end encryption has made communication channels more secure for monetary transactions between consumers. C2C can also refer to any business that creates a platform for consumers to market their goods to other consumers.
Why you should consider joining the e-commerce universe
The most apparent reason entrepreneurs and investors should look into this sprouting market is the money they stand to gain, but that is not the only reason. Other reasons why you should invest your time and money into e-commerce include the following;
- Improved access to real-time information
- Cost efficiency and reduced operations costs
- Flexible customer interaction
- Increased accuracy of business records makes running your business easy
- Affordable and effective advertising and marketing
- E-commerce makes it easy to reach clients from all over the world, regardless of country or continent
- Faster and safer buying and selling processes
- Simplified payment processes regardless of currency
- Tracking goods and business operations are more accessible and cheaper for business owners from any remote location in the world.
- Exports are easy to process
Working in the e-commerce industry also allows entrepreneurs to set up their payment mode of choice and integrate it with other popular payment methods. It is also easier for the investor to collect data from the client through open communication and feedback channels. Open communication allows the entrepreneur to adjust market positioning to increase demand and returns speedily.
You can also count on your client’s information being kept safe. Copies of IDs, passports, licenses, and banking information are encrypted using several layers of security. Your data is also backed up on several servers so that you can count on data security in the event of a hack or other security breach, or software malfunction.
Thanks to e-commerce, you can invest and earn from the comfort of your current residency—no need to visit an office daily to get your work done. You can design your work environment and culture to maximize productivity. What’s more? You do not need large sums of money to invest in the e-commerce industry. You can start small and grow your investment by plowing back any accruing interest. Thanks to internet access and tech equipment, setting up your investment and monitoring growth is also easy.
E-commerce may be a promising market, but, like any other investment, it has its risks, so it is essential to conduct research and be on the lookout for scammers poised to swindle money from unsuspecting investors and entrepreneurs. Enlist a finance specialist’s help if you are unsure about the legitimacy of an opportunity in the e-commerce industry. When doubtful, you stay safe, and avoiding committing any money is better.
Conclusion
The global e-commerce market is predicted to maintain steady growth rates in the coming years. Many other trends, like the increased access to the internet in many countries and the advancements in technology, support it. In a way, there is synergy between e-commerce and many other social trends getting slowly integrated into society. This presents a unique opportunity for entrepreneurs to invest and take advantage of the almost guaranteed growth in the industry.
