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Ecommerce Business Models & Their Features

Tag: online business

ecommerce-business-models-their-features
Mohab Ecommerce 0

Ecommerce businesses are growing at a fast pace across the world, with technology advancements in the sector making the functions easier and efficient. There are several businesses models which have proved their worth in the market. Each has its benefit and challenges. To make your online business successful, it is essential to pick a model that suits your requirements. But do that, you need to analyze them carefully.

So, read on to know about the various ecommerce business models –

  • Business 2 Business:

    It is also known as B2B ecommerce and deals with products and services provided to other businesses. Some of the main examples of this e-business model is the supply of raw material and products to retailers. This is one of the most common and versatile models of ecommerce businesses. While, this model generally has high volume and scale, it also tends to have niche market, which may impede its growth. Under this model, your organization will not be dealing with the end customer but would be supplying goods and services to intermediaries in the supply chain. It generally uses customized ecommerce platforms for carrying out their operations.

Also Read: The Importance of Starting an Ecommerce Business

 

  • Business 2 Consumer:

    The B2C model is one of the most commonly used business structures. However, there is a big scope of customization under this umbrella. This type of e-business model features high turnover but relatively lower value per order. Due to shorter turnaround time, the amount of marketing expenses is generally lower. This model is also designed to promote easier pivot as consumers change their taste frequently. The use of technology is more prevalent under this kind of model, with an aim to provide optimal shopping experience to their clients.

 

  • Consumer 2 Consumer:

    This ecommerce model goes by the name of C2C model and is one of the latest innovations in the area. Under this, consumers are connected to each other for the exchange of goods and services. Such business derives its income by changing listing fees or transaction fees. Some of the most prominent examples of such company are eBay and Craigslist. While this type of business mainly thrives on account of its simplicity, it also faces various challenges such as technology maintenance and quality control. The use of social media has proved to be an excellent strategy for such businesses.

 

Also Read: The Rise of the Subscription Business Model

 

  • Consumer to Business:

    C2B business model is an innovative structure where an individual offers products and service to organizations. These individuals are generally highly-qualified and offer services such as writing, artistry and professional acumen including accounting and legal work. Unlike other online ecommerce business models, this structure is loosely regulated. There are no specific rules applicable to this sort of arrangement, which may hamper the growth prospects. The model also tends to deal more with the services than with products. However, with the use of technological tools and changing mindsets, this business model is set to see an uptick in its adoption.

 

  • Mixed Business Models:

    Ecommerce is a highly dynamic field, and therefore, is constantly evolving. In many circumstances, it may be prudent to employ a mix of different business models available. Such customized models fall under the category of mixed business models. However, all the business models are required to use robust online payment methods. Further, such models may also be created by combining different traditional ecommerce business models. The utility of such ecommerce model is greatly enhanced if a proper analysis of the market is done to understand its exact requirements.

 

Also Read:5 Simple Steps to Launching a Successful Ecommerce Business

3 years ago
key-payment-data-points-that-your-business-should-value
Mohab Super Merchants 0

It is important to take available information into account while taking any business-related decision. The use of correct and relevant data makes the decision more robust and efficient. However, many businesses have yet to understand the importance of payment related data. While payments are deemed to be a process, it is vital to understand that the information generated by them is immensely helpful in taking various business decisions and carrying out payment processes.

Here are some of the key payment data points which are highly useful for an online organization.

  1. Conversion Rates:

The main idea behind using key payment data point is to improve the customer experience. If the customers are finding the payment setup difficult to understand, then you should take a hard look at the payment processes. Chances are your procedures are too long or tedious for the visitors. Your payment data analytics may also show a large number of people leaving your payment sign up page midway, prompting you to re-evaluate your sign-up

 

  1. Rate of Authorization:

This tells you the success rate of the attempted transactions. As in how many transactions were completed. The lower rate of authorization implies that the payment process met certain roadblocks on the way. There could be many reasons behind that. For example, the authorization might not come through if the client does not have adequate funds in their accounts or their card may have reached its limit. Other reasons include expiry or misuse of the card. This metric can automate the process, making it more efficient.

 

  1. Ratio of Chargebacks:

Chargeback rate is one of the most important metrics for a business. Higher chargebacks may indicate a wide range of issues, making it imperative for businesses to pay proper attention to this payment data point. You should look at the occurrence of a chargeback to determine the root cause. Prompt information about a chargeback may allow you to look into its reasons quickly. Additionally, you should find out why it happened. Once you have identified the reason you may work on rectifying it.

 

  1. Reconciliation of Payments:

Another important exercise needed to be carried out by businesses is to look at the reconciliation of the payments. In simple terms, it refers to the time taken for the eventual cashing of a transaction, that is the time taken by the money to actually hit your bank account. Proper knowledge about this metric can help you in designing an automated process, leading to better liquidity. The reconciliation process can also be automatized for more robust payment data analytics. With the help of this metric, you can identify clients who are prone to late payments, letting your design better collection policy.

 

  1. Customer Satisfaction:

It is another important consideration. You should know the preferred methods of payment for your clients. This data can be easily collated from the software you use for processing payments. If you use multiple sources of payments, then you can analyze the data to understand the pattern. You can also segregate the data based on various metrics such as markets and products. This insight can help you to tweak your processes accordingly. With such changes, you can retain your customers, and at the same time, attract new ones.

Conclusion

With these key data points, you can improve every aspect of your payment strategy of our online business.

Also Read: Key Points to Know Before Integrating a Payment Gateway into Your Website

3 years ago
how-paytabs-egypt-can-help-your-business-grow-seamlessly
Mohab Covid19 Resources 0

The online consumer market has witnessed massive upswing in its development all over the world. The pandemic and the subsequent stall in usual business activities have further fueled the growth of online shopping and transactions. And this surge is especially palpable in emerging economies such as Egypt. The country is witnessing an astronomical rise in its online commerce segment. +50% percent of its population is already using the internet and the penetration rate is expected to grow by leaps and bounds in the coming time period. With its massive population of nearly 100 million and the dramatic growth of internet users, Egypt presents an excellent opportunity for online businesses. It also provides ample scope for online business service providers.

In order to empower the Egyptian online business community with a leading solution, EFG Hermes has joined hands with PayTabs, a leading online service provider in the Middle East. Here’s how this collaboration can help you grow your business online:

  • Offers Seamless Online Payment Process:

    The collaboration between EFG Hermes and PayTabs seeks to make the process of online payments in Egypt smoother, faster and more accessible. With the growth in ecommerce sector, there is adequate scope for this collaboration to make its mark. Both companies deploy latest technologies and tools to make this process seamless. Furthermore, the collaboration resulted in an initiative that grants setup, integration and operations of an online payment gateway completely free of charge during the final quarter of the year for SMEs.

 

  • Integrated Services:

    The partnership between EFG Hermes and PayTabs ensures that you are able to get a wide range of services with just one contact, PayTabs Egypt. This solution will enable you to integrate its offerings and enhance your business’s synergies. Your business can offer an all-encompassing payment solution to your clients by removing the requirement to interact with multiple vendors, this new collaboration not only helps you save your time and energy, but also cut your expenditures.

 

  • Ensures Transaction Security:

    Owing to the ever-increasing threat of cyber-attacks, it is important that your business is able to provide data protection services to your clients. Your business requires safeguarding of its own data as well. In such a situation, it is vital that you choose your online payment services providers carefully. PayTabs Egypt is known for using state of the art software to provide protection against cyber hacks and attacks. Its emphasis on security ensures that all tools are up to date and ready to withstand any kind of attack. The collaboration aims to protect both data and funds for all the parties involved.

 

If you own an ecommerce platform in Egypt that you think qualifies for the SME initiative, apply here

Know more about PayTabs

PayTabs: PayTabs is a top online payment service provider in UAE. While the firm mainly focuses on Small and Medium Enterprises, it offers its services to a wide range of other businesses as well. The company is ever expanding to provide latest services to its clients. PayTabs makes it fast, safe and efficient to make and receive online payments anywhere, anytime, and even track your business’s financial health on a single platform.

The collaboration between these two stalwarts is expected to add a new edge to the online commerce segment in Egypt. With the launch of PayTabs Egypt, businesses of all types and sizes will be able to access cutting-edge online payment services in a holistic manner.

Also Read: PayTabs Payment Gateway Option for Egypt

3 years ago
understanding-the-difference-between-a-payment-gateway-and-a-payment-processor
Mohab Payment Orchestration 0

Businesses now need to deal with online transactions more than ever. For this, you need to set up an online payment processing system that is safe as well as efficient. Such a system can comprise of several service providers. So, it is important to know the precise services provided by each provider. For starters, you need to distinguish between a payment gateway and a payment processor. While both of them provide online payment related services, they have very distinct areas of operations. So, read on to better understand their differences and run your business with confidence.

What is a payment gateway?

A payment gateway is a tool that helps process the payment between the client’s bank account and the business’s bank account. The main function of a payment gateway is to secure the transmission of online payment data from one end to another. These service providers are also responsible for authorizing payments for card-not-present transactions. A gateway is mainly useful for processing online credit card payments.

In simple terms, a payment gateway is a like a middleman between a client and an online business. When a client provides their payment details to an online business, then the gateway sends this data to the payment processor for further action.

For an online business, a payment gateway can provide a wide range of services such as ensuring the safety of personal data, uninterrupted services, and the ability to accept multiple payment options. Furthermore, a payment gateway may also enable your business to accept different currencies, thus enabling international transactions. While selecting a gateway for your business, you should pay proper attention to the service offered as well as the various fees and commissions charged.

Also Read: What are the benefits of working with a payment processor?

What is a payment processor?

A payment processor is generally a financial institution which carries out payment processing services for online businesses. Such payment processors generally enjoy collaboration with other companies, which have direct interaction with merchants or consumers. A processor acts as a connecting node between a payment gateway and a merchant’s account.

The main task of a payment processor is to facilitate the transfer of payment related information and to keep the data secured. A processor collects the data pertaining to the transaction, validates and executes the instructions, and then deposits the money into the merchant account. It concludes the cycle by informing the payment gateway about the final outcome of the transaction.

There are a wide range of payment processors available in the market today. It is important to pay attention to different criteria while selecting an appropriate payment processor for your business. A processor should not only provide swift and smooth transfer of funds, but it should also be able to ensure that sensitive data transferred remains safe and secure.

Also Read: The 4 Step Procedure for an Easy Payment Gateway Integration

Integration of payment gateway and payment processor

For an online business, it is important to engage the services of both a payment gateway and a payment processor. In order to complete the cycle of online payments, the services of both are required in conjunction with a merchant account.

Essentially, a payment gateway is required to receive the payment related details from the client. Then pass the information on to the payment processor, which carries out the rest of the transaction and sends the status back to the payment gateway.

These service providers should be chosen carefully after taking your business’s specific requirements into account.

3 years ago
the-most-popular-online-payment-methods
Mohab Ecommerce 0

Online payment methods have become increasingly popular due to widespread use of internet-based shopping. Efficient payment solutions not only ensure that your business retains its liquidity but also endeavors to provide smooth services to the clients. The right payment method helps you attract more customer and address a larger market. However, before choosing one for your business, it is important to keep certain facts in mind. The selected methods should be flexible yet robust. To make things easier, here is the list of the top online payment methods.

  1. Credit Cards:

    Credit cards have emerged as one of the most frequently used online payment methods. These cards usually have international acceptability, making them highly useful for online transactions. If you want to offer this feature to your customers, you need to decide whether you want your own dedicated merchant or an intermediary holding account. It is important determine the best option as selecting one over the other can result in different business processes and funding times. This method is highly flexible as the client may choose to make payments in installment. Further, these cards also offer high level of transaction security.

 

  1. Internet Banking:

    This is an upcoming online payment method. Internet banking comes with various payment options, which are tailored to meet different requirements of clients. This electronic payment system is considered safe and secure. The client may be required to pay certain charges to their bank for using these services. However, this method is still relatively cheaper than most of the other online payment methods.

 

  1. Mobile Payments:

    Mobile payment methods are regulated transactions that is performed from your mobile device. This payment method has become widely popular as people consider contactless payment to be the safest option. It is secure, fast and convenient. Mobile may be used for processing payments made by a chip card or a credit card. This payment option is highly flexible as it incorporates several methods such as typing the credit card number or simply dipping a chip card to process a payment. There has been development of mobile payment hardware as well for the purpose of swiping physical cards and processing the payment. This method of online transaction will likely to gain more traction in the coming times.

 

  1. Online Payment Gateway:

    You can offer this payment method to your clients by simply adding an online payment solution. It is the simplest way for organizations to collect online payments from their website or an app. This solution is swift and convenient. Choosing a reliable online payment gateway is an important decision as several options are available in the market. However, it is vital to check out all the options and pick the one that best suits your business as many gateways offer one stop solution. These gateways not only allow you to expand your market but also to offer security and safety to your clients.

 

  1. Click to Pay Email Invoicing:

    Email invoicing is amongst the most user-friendly methods of online payments. It is a fully integrated and intuitive to use. It also allows your clients to generate their payment by producing an invoice. Businesses can streamline their process with this method. With increasing number of people making online purchases, the payment solution has become quite popular. It is also fast as when a customer clicks the link and pays the invoice, it is automatically updated in the system as paid, saving both your time and energy.

 

Also Read:5 Emerging Trends In The Mobile Payments Space

3 years ago