a shopify Solutions v Pricing Resources v What's new v Login<br>Blog Findanldea  StartingUp Marketing Latest More wv Search Q<br>Start your free trial with Shopify today—then use these resources to guide you through every step of the<br>process.<br>BLOG | ENTREPRENEURSHIP<br>What Is Ecommerce? The Complete Guide To<br>Explore ecommerce, from how it works to types of ecommerce models to online shopping trends to the<br>benefits of selling online.<br>On August 11, 1994, a compact disc of Sting's "Ten Summoner's Tales" by Dayna Winter<br>was securely exchanged in the world's first online sale. The birth of Aug 12. 2024<br>ecommerce, this transaction marked an important shift in global<br>shopping and business.<br>Today, ecommerce—the buying and selling of goods online—is<br>powered by a massive ecosystem of technologies and digital<br>platforms, from website builders to payment gateways to social<br>media sales channels. With global ecommerce sales projected to<br>reach $8 trillion and account for 23.6% of all retail activity by 2026,<br>new technology for selling products to customers online is emerging<br>every day.<br>Ahead, explore the ins and outs of ecommerce: from how it works<br>to types of ecommerce models to online shopping trends to the<br>benefits of selling online. Plus, learn how to start an ecommerce<br>business and launch your own big idea.<br>What is ecommerce?<br>Ecommerce refers to when individuals or companies buy and sell<br>goods or services online. Ecommerce can be carried out on a<br>smartphone app or online store, on a social media platform, or<br>through an online marketplace. You can participate in ecommerce<br>anywhere you can establish an internet connection. Common<br>examples of ecommerce include online shopping, electronic<br>payments, online auctions, and internet banking. The goal of Keep up with the latest<br>ecommerce for the seller is to drive online sales using digital from Shopify<br>marketing strategies. Get free ecommerce tips, inspiration,<br>and resources delivered directly to your<br>inbox.<br>The history of ecommerce<br>. Enter email<br>What counts as the first ecommerce transaction is up for debate,<br>with some activity observed as early as the 1970s. But the first legal j<br>transaction that occurred entirely online was conducted in 1994, Subscribe<br>when one friend sold a CD to another, 300 miles away. From there, By Ey ial youl aes Tore<br>ecommerce exploded, with Amazon and eBay launching just a year marketing emails from Shopify.<br>later, and PayPal following in 1998.<br>Since then, technology moved fast to meet the demands of this new<br>type of shopper. Ecommerce platforms like Shopify democratized the<br>industry, allowing a small business to sell directly to consumers<br>anywhere in the world. Social commerce, mobile wallets, and Al<br>round out today's selection of ecommerce tools.<br>How does ecommerce work?<br>|<br>jl Ea<br>ef Ek<br>Pr ~~ POPULAR POSTS<br>SOCIAL MEDIA OPTIMIZATION<br>How To Make Money on<br>Instagram in 2024 (9<br>After a customer makes a purchase, the online retailer delivers the Actionable Ideas)<br>order via shipping, store pickup, or local delivery (in the case of STARTING UP<br>physical products), or digitally (for digital products like PDFs, virtual<br>courses, or online consultations) How To Start an Ecommerce<br>§ : Business: Guide for 2024<br>Ecommerce transactions happen across a variety of devices and GUIDES<br>platforms, using a number of different payment methods. Other What Is Dropshipping and<br>applications and businesses support this ecosystem, from ad How Does It Work? (2024)<br>platforms like Google Ads to third-party logistics companies to<br>ecommerce store apps. Here are a few of the technologies powering FIND AN IDEA<br>online sales: What Is Print on Demand &amp;<br>How To Start a Business<br>(2024)<br>Types of ecommerce platforms and online<br>sales channels<br>[J<br>°<br>-<br>= Plant Scout<br>Refresh your home with lif fav@llites<br>[J<br>Fearred collection<br>There are many ways to reach and sell to consumers online, including<br>owned channels like an online store and through third-party<br>platforms. There are pros and cons to each and many online sellers<br>choose an omnichannel approach, selling through multiple channels.<br>Ecommerce platforms Cal<br>-<br>An ecommerce platform is a service that allows you to make money |<br>online through your own website. Shopify is an example of an<br>ecommerce company that enables individuals, creators, and<br>businesses of all sizes to sell online and in person through a brick- THE POINT OF<br>and-mortar store. SALE FOR<br>EVERY SALE.<br>Benefits: These ecommerce companies generally offer everything<br>you need to build a website, create product listings, and accept<br>payments online, making them an easy way to build a brand and start<br>selling.<br>Challenges: Selling on your own website requires active marketing<br>efforts to drive traffic and make sales.<br>The Best Ecommerce Platforms: Which ... [J fod<br>he Best J<br>t/<br>-<br>Ecommerce ji ©<br>&lt;<br>Platforms%g<br>Pa<br>c<br>Online marketplaces<br>Online marketplaces are ecommerce sales channels that allow you to<br>sell products and services to an active audience. Online selling sites<br>like Amazon or Etsy are also powerful search engines, as they are<br>often the first point of discovery for consumers looking for products.<br>Benefits: You can sell on marketplaces in tandem with your Shopify FOPULARIPOSTS<br>online store using integrations to sync sales. Marketplaces often have<br>. i Ny . . SELL ONLINE<br>discovery built in, meaning you benefit from traffic with less active<br>marketing. How To Create a Website in<br>9 Steps (2024)<br>Challenges: Marketplaces make it difficult to build a brand versus a a —<br>standalone ecommerce store. You often don’t own your customer<br>lists and you have limited control over the look and feel of your store Flow Jo Siar Sn Grins<br>ve Ve Store in 2024 (Step-by-Step<br>or brand. Guide)<br>FIND AN IDEA<br>Social selling channels How To Make and Sell Merch<br>: : Ye F Will L (2024)<br>Many social media platforms offer in-platform buying and selling our Fans Will Love ( )<br>features, enabling small businesses or personal brands to sell directly SELL ONLINE<br>to audiences without an online storefront. Facebook and Instagram 10 Best Ecommerce<br>both offer native shopping features. You can also sell to social Website Builders for Your<br>audiences with a Shopify Starter plan, an economical alternative to a Online Store (2024)<br>full ecommerce website.<br>Benefits: You can easily sell to existing audiences on channels you<br>already manage without building an ecommerce website.<br>Challenges: The audiences you build on social media sites areoften<br>not owned. If you lose your account or the platform shuts down, you<br>will need to rebuild from scratch.<br>Reach customers everywhere they are with<br>Shopify<br>Shopify comes with powerful tools that help you promote and sell products<br>on Facebook, Instagram, TikTok. Google, and YouTube from one back office.<br>Make sales on multiple channels and manage everything from Shopify.<br>Explore Shopify’s sales channels<br>Payment methods for ecommerce<br>once #1224 hy<br>$42.00 Jan28 |<br>Ceramic Mug Set<br>$42.00<br>Shop Pay is an accelerated checkout option that consumers can use to buy products on<br>Shopify ecommerce sites with a few clicks.<br>Consumers can make online purchases in a number of ways from<br>digital wallets to credit cards processed through a payment gateway<br>in an online store. Ecommerce platforms usually include integrations<br>with payment processing services and sometimes offer their own<br>digital payment platforms. These services are the liaison for online<br>transactions between a merchant and a customer's bank. Payment<br>options are often bundled in the checkout to offer the customer<br>choice.<br>A few types of payment methods for ecommerce stores include:<br>+ Accepting credit cards and other popular payment methods<br>through a payment processor like Shopify Payments<br>+ Redirects through a payment platform (e.g., PayPal)<br>+ Mobile wallets such as Apple Pay and Google Pay (includes<br>accelerated checkout options like Shop Pay)<br>+ Buy now, pay later (BNPL) services<br>«Recurring billing (as in the example of subscription models)<br>«Order online, pay in-store on pickup with a point-of-sale system<br>like Shopify POS<br>Boost sales with buy now, pay later<br>Shop Pay Installments gives customers flexibility at checkout by letting<br>them pay in 4 interest-free payments or monthly installments up to 12<br>months. Increase average order values, reduce abandoned carts, and turn<br>more browsers into buyers today.<br>Discover Shop Pay Installments<br>Types of ecommerce businesses<br>explained<br>oe .<br>¢ Yo<br>) WB hr<br>{| hd | | I | 2<br>3. |<br>B J<br>-—<br>wh:<br>There are many ecommerce types, defined by who you are and who<br>you're selling to. Some helpful ecommerce terms to know are as<br>follows.<br>Business to consumer (B2C)<br>A business that sells goods or services to an individual consumer<br>(e.g.. An ecommerce footwear store sells individual pairs of shoes<br>directly to its customers).<br>Business to business (B2B)<br>A B2B business that sells goods or services to another business (e.g..<br>A software company sells licenses for its technology to a small<br>business).<br>Consumer to consumer (C2C)<br>An individual who sells goods or services to another individual (e.g., A<br>person sells a single used sofa to another person on a buy-and-sell<br>marketplace). Note: Once a person begins selling multiple items in<br>this way (a vintage reseller using channels like Depop), their business<br>model could be considered B2C.<br>Consumer to business (C2B)<br>An individual sells their own products or services to a business or<br>organization (e.g., A business pays an independent influencer to<br>promote the brand on social media).<br>You may also encounter a few other terms to describe types of<br>ecommerce businesses. Direct-to-consumer (DTC or D2C) brands are<br>those that primarily sell directly to their customers, either online or in<br>person, without a middleman (a retailer or distributor). A digitally<br>native vertical brand (DNVB) refers to a DTC business that started<br>entirely online. Popular examples of these ecommerce business<br>models include mattress brand Casper and men’s grooming brand<br>Harry's.<br>5 ecommerce revenue models<br>In addition to deciding what type of ecommerce business you want<br>to run, it's important to decide how that business will make money.<br>There are at least five different revenue models used by businesses<br>selling online. They are:<br>1. Sales model. This is the most common model used by online<br>brands and physical stores alike. It involves selling products and<br>services for profit.<br>2. Subscription model. Growing in popularity among consumers<br>and ecommerce DTC brands, this model relies on recurring<br>revenue from subscriptions to products or services.<br>3. Advertising model. This model is common among online<br>creators and influencers who grow personal brands thanks to<br>advertising deals (promoted content) with other businesses.<br>4. Affiliate model. Affiliate programs are also popular among<br>creators who have large followings and may or may not sell their<br>own products. They earn commission when a customer buys a<br>product using an affiliate link.<br>5. Transaction fee model. This model applies to ecommerce<br>companies that process financial transactions. They earn<br>revenue by charging a fee on each sale.<br>@ How a Meat Business Thrives on a Subscription Model<br>In this episode of Shopify Masters, ButcherBox founder Mike<br>Salguero explains how his meat and seafood business started<br>as a side hustle and bloomed to a nine-figure brand using a<br>subscription revenue model.<br>Hear his story<br>The benefits of ecommerce<br>businesses<br>N<br>02%<br>SSA<br>- 5 Ae<br>CX XG KZ<br>\ CXX3 £2<br>\ CX Xa 4<br>XX4 52<br>® Xa 7<br>XY<br>XX3 2<br>YY<br>y bh (4<br>1 en<br>Running an ecommerce business has its perks. Not only does this<br>business model allow you to launch a business quickly, it also offers<br>access to a global pool of potential customers looking for a<br>convenient way to buy your product and interact with your brand.<br>1. A convenient way for consumers to shop<br>Ecommerce allows customers to shop from anywhere, on any device,<br>at any time, without the need to physically visit a store. Potential<br>customers can more easily discover your brand—even from another<br>country—and compare products, features, and prices in minutes.<br>With a multitude of payment options offered by ecommerce,<br>shopping online is even more convenient.<br>2. Increased reach and access to new<br>markets<br>An ecommerce business can reach a wider audience than a physical<br>store alone. With an ecommerce store, businesses can sell their<br>products to customers all over the world, without the need for a<br>physical presence in every location. Shipping partners and logistics<br>companies connect the dots, moving online orders across the globe.<br>@ This Grandmother Took Her Local Business Global<br>Nonna Nerina offered old world pasta making classes to<br>tourists in her small village in Italy. Then the pandemic put a<br>halt to travel. With the help of her granddaughter, she launched<br>Nonna Live to a global market online.<br>Read her story<br>3. Personalization and data<br>While it's difficult to replace the one-to-one touch of a retail<br>experience, online stores have a leg up on personalization. Customer<br>data can be used for ecommerce marketing personalization, with<br>customized experiences tailored to each individual. This can include<br>personalized product recommendations, targeted marketing<br>campaigns, fit finder quizzes, and loyalty programs.<br>Online stores usually have the ability to offer more choices, like color<br>variants or product customization. Personalized shopping<br>experiences can help businesses build stronger relationships with<br>their customers and increase customer loyalty.<br>4. Lower startup and operating costs<br>Ecommerce businesses often have lower overhead costs than<br>traditional brick-and-mortar stores. An ecommerce business can be<br>run from anywhere, including a home office. While new business<br>owners are still on the hook for inventory and costs to set up a<br>website and domain, they often don't need to worry about rent,<br>utilities, and other high startup costs. Certain ecommerce business<br>models such as dropshipping or print on demand don't require<br>inventory, and can be fairly inexpensive to set up and run.<br>The challenges of ecommerce<br>businesses<br>&amp; J<br>¢ 4 |<br>on =<br>RY =<br>- a Sh —<br>i = » - |<br>i | * B 3 od<br>BB EE<br>| 1 i<br>—<br>~ :<br>fa J<br>While running an online business has its benefits, it also comes with a<br>few challenges. If you're looking to start an ecommerce business,<br>plan for these potential pitfalls before you proceed.<br>Security concerns in ecommerce<br>One of the biggest challenges of ecommerce is security. Customers<br>need to trust that their personal and financial information is safe<br>when they make purchases online. Ecommerce businesses should<br>invest in secure payment gateways, SSL certificates, and other<br>security measures to protect their customers’ data. Note: Plans on<br>Shopify come with security features like SSL and a secure payment<br>gateway.<br>Clearly outline these security measures for customers in your terms<br>and conditions and on the checkout page.<br>Increased competition<br>Ecommerce is a highly competitive space, with many businesses<br>vying for the same customers. Online businesses need to<br>differentiate themselves from their competitors by offering unique<br>products, competitive prices, and exceptional customer experiences.<br>Shipping and logistics challenges<br>Every successful ecommerce business owner knows that a<br>customer's experience with shipping can make or break a brand.<br>Online stores need to have efficient and reliable shipping and<br>logistics systems in place to ensure that products are delivered to<br>customers on time and in good condition.<br>How to Package and Ship Orders: Ecom... [J] 25<br>Watch Later} Sha8<br>CKAGE 4<br>AND SHIF 4<br>ONLINE —<br>Watchon EB Voulube A<br>ZR<br>Returns and customer service demands<br>In order to be competitive, ecommerce brands need to have robust<br>return policies and customer service systems in place to handle<br>customer inquiries and complaints. This can be challenging,<br>especially for businesses that sell complex or technical products, or<br>for small businesses with little or no staff.<br>Top ecommerce trends and<br>statistics<br>Sado Ge CED<br>Coes vf Gao bes Su BO BS. ©.<br>= 100% Organic<br>3 ii of - ~<br>Fi SP RC [<br>Ecommerce trends impact everything from how websites look and function to the most<br>popular products types.<br>Staying on top of ecommerce shopping trends will help your<br>business remain competitive and meet ever-changing customer<br>needs. While trends are constantly evolving, there are a few that<br>signal a more permanent shift in the way consumers discover, buy,<br>and support businesses.<br>1. Social ecommerce is on the rise<br>Social commerce sales in the US are expected to reach $80 billion by<br>2025. Effective social selling means engaging in actual conversations<br>with potential customers online. As you build trust and establish<br>relationships, you can eventually move the customer through the<br>marketing funnel toward a successful sale.<br>Learn more about this trend and how to sell on social platforms with<br>these selling guides:<br>+ How to sell on Facebook<br>+ How to sell on Instagram<br>+ How to sell on TikTok<br>+ How to sell on Pinterest<br>+ Top 10 Social Selling Platforms To Utilize This Year<br>2. Social platforms are the new search<br>engines<br>More and more, product discovery is happening in places you might<br>