What is e-commerce? and the difference with online shop
The term e-commerce, short for electronic commerce. Describes all commercial transactions on the Internet, including the purchase and sale of goods on the Internet. E-commerce includes not only online shop, but also other areas of e-business, such as online banking or customer service. In general, however, the term we use e-commerce is in everyday language for online shop.
Online shop or marketplace model in e-commerce
People often equate e-commerce with selling products through your own online store. But there is also the so-called marketplace model: If you, as a founder, do not want to deal with the complex technology of online shops. Marketplaces such as eBay or Amazon can be a good alternative. Numerous retailers offer their goods there and the platforms take care of the smooth running. Commercial retailers can enter their products into the tried and tested system and reach customers worldwide. Search more information in ecommerce development in dubai.
If you want to get into e-commerce as a founder, you should consider:
Do I create my own online shop or do I sell my goods via a marketplace?
Your own shop: With your own online shop, you as a founder are much more flexible, but you have to invest a certain amount of time and money in setting up the shop. The advantage: you are and remain your own boss and control the entire process. You also don’t pay any sales fees to third parties. But don’t forget to always develop your e-commerce. You can ask to the professional ecommerce development company dubai.
Marketplace: Amazon and eBay have a combined 66 percent market share in e-commerce. None of the competitors get more than 2 percent. When selling via a marketplace like Amazon or eBay, you can benefit from their huge customer base and generate sales from day 1. However, the marketplace operators earn money from every product sold and make important decisions about the conditions under which sales are permitted.
Online retailers
Online retailers and retailers via eBay, Etsy and Amazon FBM are best off using the one-stop shop to pay income tax to the recipient countries. The OSS process reduces bureaucracy to a minimum. Registration with Elster is necessary to participate.
Anyone who uses Amazon FBA can also use the one-stop shop service. But needs to be registered for VAT in all EU countries they supply.
As both models have advantages and disadvantages, it is advisable to work with a combination of your own online shop and sales via marketplaces. You will undoubtedly find customers more quickly on the established marketplaces. But in the long term, the most money will stay in your own pocket with your own shop. It usually takes people years to set up an online store, whereas you can start one immediately on the marketplace. As long as the buyer is looking for the product you have. Products can also be tested very quickly and easily via a marketplace. Increase your income with ecommerce development company in dubai.
E-commerce to support brick-and-mortar retail
Brick-and-mortar retail has suffered from e-commerce for many years. First, people laughed at e-commerce as a short-term fad. Then retailers cursed it for its growing market share. In the meantime, however, there has been a rethink in stationary retail: under the technical term “multichannel”, traditional retailers are no longer only active in stationary stores, but also in e-commerce. Choose the best ecommerce development dubai.
Retailers are using different forms of multi-channel sales. Some are taking a two-pronged approach and offering their goods separately in terms of price and logistics – i.e. online and offline. However, it has now become clear that a close connection between e-commerce and stationary retail is the most economically effective. The advantages of traditional retail can be used. For example by allowing online orders to be picked up in the store free of charge. Customers can also be lured into the store by special offers that they receive online.