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Common Question & Answers (Q&A) About E-Commerce Business

Common Question & Answers (Q&A) About E-Commerce Business

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The eCommerce market is surging ahead at lightning speed and is expected to reach US$ 111 billion by 2024 and US$ 200 billion by 2026. Many individuals who have a considerable interest in eCommerce business want to dive into the market as eCommerce entrepreneurs.

They have countless questions that keep them confused about how to start an eCommerce business, reach the target audience, and get a consistent source of loyal customers and revenue stream.

Fynd Platform has surveyed several new brands using its eCommerce business solutions. It has carefully curated common Questions and Answers (Q&A) asked by every entrepreneur eager to impact the eCommerce business positively.

1) How does the eCommerce business work?

eCommerce business works in the same way as a physical store. Customers searching for products reach eCommerce websites that have these products in stock. They view and check the details of the product using images, descriptions and customer reviews.

Then as a customer uses a cart to collect the products in supermarkets, customers utilize the Add to Cart option, make the online payment, and have them deliver it to their home.

The only difference is customers do not need to go personally to shop for the products. They can use smartphones, laptops, desktops, iPad, and iMac devices to shop online and ship them to their homes. 

2) What eCommerce business should I start?

What eCommerce business should we start? That is a question that only entrepreneurs or individuals with a business mindset can answer. One should try to find out a clear answer to below questions before starting an eCommerce business– 

  • What is the niche/interest area for your planned business?
  • What is the problem you will solve that is still unsolved in today's business environment? 
  • How are end customers going to benefit from these products/solutions?
  • Does your product address the problems of a broad range of customers?
  • Who are your competitors & what distinguishes your business from them?
  • Have you thought of an online marketing strategy that will bring sales for your products?

Example: Niche can be a jewellery business with a play of floral and fluid metallic forms with exotic crystals like Parishri.

Problem statement: Customers demand jewellery showing the rich culture and heritage of Rajasthan but couldn’t find one due to the absence of trustworthy brands in the market.

Benefits for end customers: Customers can choose authentic Rajasthani jewellery in 18K Carat gold embedded with semi-precious and precious stones like Ankeletes, Mang-Tikka, Choker, Nose rings, bangles and a lot more.

Addressing the specific problems of customers: A big yes! The online store of Parishri serves as a one-stop-shop for customers deeply interested in Rajasthani culture & heritage, shopping for authentic Rajasthani Jewellery in a single place. 

3) What is the most profitable eCommerce business?

There is no straight answer to this question as it largely depends on the type of products or services offered, the target market, and the level of competition in the space. However, these are the top 3 eCommerce business ideas that are highly popular among startups and entrepreneurs in 2024.

A) Jewellery products: The global jewellery market is observing an electrifying growth story and is expected to grow from USD 269.19 billion in 2024 to reach USD 518.90 billion by 2030.

Jewellery is a niche area that has never lost shine in any challenging business situation. There is always a staggering demand for jewellery products from women of all age groups. Many target customer segments are still waiting to be explored. Some of these are: 

  • Customized jewellery
  • Diamond Jewellery
  • Costume jewellery
  • Vintage jewellery
  • Handmade jewellery
  • Plated jewellery

B) Fashion Products: The fashion industry business statistics would make you drool to set up a profitable eCommerce business. The industry is said to be valued at $3 trillion and constitutes 2% of the world’s GDP. 

Women’s apparel: The women’s apparel segment of the fashion industry has an estimated revenue of $804 billion and is expected to grow by 4.81% annually. Hot selling products in the women's apparel business are sarees, leggings, churidar, Palazzos, jumpsuits, kaftans, gowns, lehengas and a lot more.

Men’s apparel: The men’s apparel segment of the global fashion market has an estimated value of $483 million as of 2018 and is expected to rise to $740.8 by 2025. Hot selling products in men's apparel are t-shirts, jeans, cargos, track pants, suits, blazers, waistcoats etc.

Children's wear: The value of the children’s wear fashion market was $169 billion in 2018 and is predicted to reach $239 billion by 2024. Hot selling children wear are tops, joggers, skirts & shorts. Jeans, joggers, trousers and Bermudas.

Bridal attire: The industry for the bridal dress is expected to grow to $43.5 billion by 2024.

C) Cosmetics Products: The growth in consciousness about external beauty and an individual's internal intellect has become one of the major driving factors for the use of cosmetics in the global market.

Presently, along with women, there is a rise in the use of cosmetics among men in their daily routine, which complements the growth of the global cosmetics market demand.  The global cosmetics market was valued at $380.2 billion in 2019, and is projected to reach $463.5 billion by 2027, registering a CAGR of 5.3% from 2021 to 2027. 

The top-selling category of cosmetic products are:

Skincare products: The skincare market makes up about 30% of all cosmetics sold, the largest share of any category.

Hair Care products: Products for the hair are the second most popular type of cosmetic making up approximately 25% of sales.

Colour cosmetics: They make up 20% of the cosmetic market.

Fragrances: They make up 10% of the cosmetic market.

4) What are eCommerce business models?

The ecommerce business model is a business structure that allows individuals and companies to sell goods electronically. There are six types of eCommerce business models:

Business-to-Business (B2B): Ecommerce B2B model is where a business entity interacts with other businesses to sell or buy products and services. At the same time, an e-commerce platform facilitates the interaction between them.

Examples of eCommerce platforms following the B2B model are Uniket and Alibaba. The advantage of this business model is that order sizes are pretty large, and repeat orders are very common.

Business-to-Consumer (B2C): eCommerce Business to Consumer (B2C) model is one of the most popular online business models. Online retailing enables businesses to sell products or services directly to consumers over a computer or internet connection. Amazon, Fynd Store, and Flipkart platforms follow eCommerce B2C models.

Consumer-to-Consumer (C2C): eCommerce C2C model is a model of ecommerce where the buyers and sellers deal with each other directly. It is more efficient than traditional e-commerce because any third party does not control this marketplace, and there are no additional charges.

The business model ensures that even small businesses get access to global customers without paying any commission to any platform. The best examples of C2C eCommerce business models are Etsy, eBay and Craigslist.

Consumer-to-business (C2B): Consumer-to-business is a type of eCommerce business model where a customer provides a product or service to the business. The customer is an individual that has something to offer to different companies. 

For example, an individual is an expert in making eCommerce websites and doing it for retailers, entrepreneurs and startups. Examples of C2B business: Shutterstock, Upwork.

Business-to-Government (B2G): Business to Government (B2G) is a type of ecommerce business model in which a company sells its products to government agencies. Government issues request for proposal (RFP). Then eCommerce companies have to bid on government contracts, and if they get selected, they bag the contract and get the golden business opportunity from the government.

Business to Business to Consumer (B2B2C): A business model where two different companies form partnerships to sell their products and services to the end consumer. 

Example: Instacart is an excellent example of how B2B2C works for newer tech startups and legacy grocery stores to add a beneficial service for consumers. Instacart is Company no 1 that reaps the benefits of partnering with the existing grocery stores, which gives them a built-in customer base. The grocery stores are Company no 2 that can offer a service to their customers without investing their resources.

We have many readers interested in learning more about eCommerce, but we understand it can be a complicated subject for new audiences. So we have compiled a list of common Questions and Answers (Q&A) about eCommerce business for every aspiring business owner. We hope that we have answered some of the critical eCommerce business queries, and this is helpful for those of you who want to learn more about the industry.

Fynd Platform is the number one eCommerce platform that helps you sell products online to global customers. Start, run and grow your business with Fynd Platform. Start 30 days Free Trial Now or Book a Demo today.

Maximize Festive Season Sales With Fynd Platform

Learn from the masters and cracks the code to festive season sales success with Fynd Platform's Festive Readiness Guide

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