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The Importance of Starting an Ecommerce Business

Tag: online payment gateway

the importance of e-commerce
Mohab Ecommerce 0

the importance of e-commerce

Who does not want to run a successful business without breaking the bank? And if this can be achieved by making the most of digital revolution, then there is nothing like it! That is probably the main reason why ecommerce continues to soar globally and why even large companies are opening their doors to this business model. The importance of ecommerce in the Middle East is probably evident in the fact that by 2025, the market is likely to be worth $50 billion. Supportive government initiatives, avant-garde technologies, and a rise in disposable earnings are some factors driving this growth.

According to forecasts done by Emarketer, the significance of ecommerce also lies in the fact that sales is all set to grow by leaps and bounds and possibly touch $2.5 trillion by the end of 2018. And that’s not all. A study conducted by Credit Suisse Research Institute, earlier in 2015, had predicted that total annual online retail sales could reach upto 3.5 trillion USD. With such positive outlook surrounding this business model, we decided to deep dive into the reasons why starting an ecommerce business makes so much sense.

Importance of Ecommerce for Better Business Growth

For starters e-commerce businesses can sell tangible and intangible products or services, and reach out to millions like never before. They can not only sell more this way, but also diversify more, enhance their brand image, widen the customer base, and take risks and cut losses.

  • Unlimited Reach: The global internet audience continues to grow (3.5 billion as per Plunkett Research) and thanks to the vast base of high speed internet, it’s much easier to offer your audience a range of products and services. And that makes ecommerce a natural winner. Whether you are planning to create a new company or expand an existing one, ecommerce can open up a world of opportunity. The significance of ecommerce in blurring geographical boundaries, earning in international currencies, and scaling without investing in physical stores, cannot be overlooked.
  • Location Indifferent: Unlike physical stores, ecommerce stores don’t require prime locations to be visible to their audience. The swanky high street corner spot does not matter anymore. All you need is a smart domain name, good product photos, and a selling platform to get up and running – and the world can be your audience. You can do better if you don’t underestimate the power of physical advertisement in places like subways or parks. Just employ advanced technology whenever possible. For instance, capitalize on social media platforms to forge deeper connections with your target audience, especially if they include millennials or Gen Z people. Connect through popular communication channels such as instant messaging apps and SMS while subtly pushing products and promotions.
  • Go with your Favourite: With e-commerce, you offer a wide array of options to customers, be it clothes, cookware or electronics. Naturally, the buyer feels more motivated to make a purchase, as he or she can surf different categories or items for hours and read reviews or research. You can even profit by catering to very specific kinds of customers or those with unique preferences and sell say diabetic baked goods, bird houses and feeders, 3D printed items, pet health trackers, or sci-fi equipment.
  • Don’t have to Break the Bank:The importance of ecommerce from a financial standpoint is that you don’t have to go bankrupt to start a business. Not a lot of investment is needed to set up ecommerce sites, more so if you are in the know about SEO tools and the concept of marketing automation. Once you master the art of ranking high on search engines and maintaining an engaging site, you will see website traffic rolling in easily. Just build good relationships with distributors, so that you can procure quality products.
  • Easy to Build Loyal User Base: It has been found that around 80% of the web population purchase from ecommerce sites now and then. There’s no reason for you to not make use of this staggering figure! An easily navigable and aesthetic website, great informative content and ample privacy and security measures can encourage customers to trust you. Understand the buyer journey and what kind of motivation is required at every stage, from awareness to consideration. Experiment with multiple content formats to generate awareness, build interest, drive conversion, and encourage shoppers to keep coming back for more. Keep making improvements to build a large loyal base.
  • Retargeting Customers Easier than in Physical Stores: Ecommerce businesses sure have more advantages than physical stores. For instance, the problem of abandoned carts can be addressed smartly with retargeting tools when you have an ecommerce site. Valuable, engaging and original content is yet another way to lure customers and inform about discounts or promotions. You also get to tap into social media platforms like Facebook or Twitter, by integrating your ecommerce site with them. Interesting and useful posts, offers and fun competitions can boost your social media image and enhance the traffic for your online store.
  • Ecommerce Offers a Personalized Experience: By setting up an ecommerce site, you can offer a more personal experience to shoppers than brick and mortar stores. Advanced technology, including AI and deep learning tools, can help you read and analyze customer behavior quickly and easily. This way, you will know what to offer whom. Potential buyers will get to enjoy benefits like prompt customer service, tracking of orders, rewards, personalized recommendations, newsletters and more.
  • Offers Ease of Shopping to Customers: Remember that the more convenient you make the shopping experience for your customers; the higher will be your sales. And what better way to do it than with ecommerce sites? On such sites, shoppers can place orders on busy weekdays, weekends, early mornings, late nights and holidays too. So, the importance of ecommerce also lies in the fact that the model offers tons of freedom and flexibility to shoppers, whether they are stuck at home, travelling, suffering from a disability, or too busy at work.

Time to Appreciate the Need and Importance of Ecommerce

Apart from all the benefits listed above, starting an ecommerce store can let you manage your time and resources as you wish, and build your brand in a more affordable way than the traditional route. Plus, trusted online payment gateway services like PayTabs can help you with hassle-free payment receipt, enable mobile payment, send invoices to customers, and make fund transfer a cakewalk. You will be able to monitor all transactions in one place, detect problem areas on time, identify opportunities, and take smarter decisions for improved profitability. So, what are you waiting for? Take your business online and see the difference!

FAQs

• What is the Importance of E-commerce Business?

The need and importance of ecommerce cannot be emphasized enough in today’s fast-paced world, as it helps businesses to expand the customer base fast, build better relationships by offering more flexibility and options to shoppers, earn from any part of the world, and grow even without setting up physical stores. Through ecommerce, businesses can also offer a customized experience to buyers, gain trust, drive more conversions, and draw them for repeat purchases.

• What Economic Factors Contribute to the Significance of Starting an Ecommerce Business in Today’s Market?

It is considerably cheaper to start an ecommerce business compared to a traditional brick-and-mortar venture, as you will just need a website and have to learn organic marketing tricks. Even paid social media marketing will cost you less than physical advertising. Moreover, millennials with higher disposable incomes are increasingly buying from e-stores these days. The cost of digital communication and transactions is also significantly less than in a physical setup. Storing and managing important data is cheaper in case of ecommerce too.

4 months ago
4-solid-tips-to-help-choose-the-best-online-payment-gateway
Mohab Growth Hacks 0

A payment gateway is one of the most important components of an ecommerce venture. With a secure payment gateway, you can ensure the safety of your business as well as of your clients’. In these tough times, payment gateways have become a soft target for scammers and hackers. If your business is dependent upon online payments, then it is necessary to take proper steps to ensure the robustness of these online payment systems. There are several criteria which should be kept in mind when choosing a secure online payment gateway. Listed below are some tips will help you find the right one.

Protection against Cyber Attacks:

A secure payment gateway is the one which can protect yours as well as your clients’ data. With the growing scope of online shopping, the segment come under phishing and spamming attacks. It is important that your payment gateway is able to provide protection against such attacks. This is generally ensured by employing latest technological tools to defend your data from being stolen. These cyber attacks may not only impact your data but also your reputation in the market. Therefore, it is essential to pick your online payment gateway after thorough consideration.

Also Read: Top 3 things to consider while choosing a payment gateway for your business

Pay Attention to Chargebacks:

Another metric which can help you gauge the impact of a secure payment gateway is the number of chargebacks. A company generally faces two types of chargebacks — distribution chargebacks and consumer chargebacks. Both are detrimental to the business in long run. Distribution chargebacks are generally more difficult to recoup. The ideal solution is to minimize the incidences. Consumer chargebacks, on the other hand, are generally caused by unscrupulous clients. If they are making payments through stolen or otherwise ill-gotten means then such payments are bound to fail, leading to chargebacks. You should choose an online payment gateway which is able to minimize chargeback related issues.

Proper Integration:

Incorporating an online payment gateway on your website is no longer a tedious task. However, you should still ensure that the integration of the payment gateway is seamless and secure. This is important to provide fast and reliable experience to your clients. You should also ensure that various software used by you such as online store software, shipping database and cart software are compatible with your online payment gateway system. Any technological loophole can make your system vulnerable to cyber attacks and threats. Your software should also be compatible with your website and hardware to provide smooth experience to your clients.

            Also Read: Tips To Choose the Right Payment Integration Method for Your Ecommerce Site

Secure Data Storage:

Another important feature to look for in an online payment gateway is the data storage process. However, data storage is an expensive proposition. You may have to limit the amount of data that may be stored. You should properly carry out the cost benefit analysis of data storage facility provided by your online payment gateway system. Payment gateways like PayTabs provide optimum solutions in this regard. Furthermore, the system should also have proper checks and balances in place to weed out dubious transactions. These solutions should use technologies such as fraud scrubbing and anti-theft software to enhance their credentials and provide the best possible services.

Also Read:9 Things to Look For In a Payment Gateway

3 years ago
what-you-need-to-know-before-starting-an-ecommerce-business
Mohab Ecommerce 0

Ecommerce businesses demand dedication and careful planning. It is also important to properly execute the plans so that you can achieve efficiency and success. While setting up an online business is a dynamic process, there are certain guidelines which you can follow to ensure that your efforts yield the best possible results.

Let’s discuss those guidelines in detail –

Research the space

The first step in the process of setting up an ecommerce business is to research the online space. Apart from studying the broad online scenario, you should also analyze your own specific ecommerce segment. At this juncture, you may want to focus on several points such as the breadth and depth of the market and the likely future growth rate. Once you are done with the analysis, it is time for to create a niche for yourself. You may start by finding out your unique selling points or USPs. Recognizing the unique propositions of your business can help you in targeting the desired market segment in a more efficient manner.

Also Read: Starting Your E-Commerce Business: Key Points

Choose your Offering

Once you have analyzed the market, it is time to pick what you are going to offer to your clients. You may have a product to sell or a service to offer or have a portfolio consisting of various offerings. You should carefully curate your offerings to ensure the right mix. It is generally advisable to have a variety of goods and services so as to provide more comprehensive experience to your clients. It is also important to diversify your risk factor by investing in different lines of products. You should also pay attention to the supply chain to avoid the roadblocks for the procurement and the distribution of your product.

Set up your Business

It is the most crucial stage. You need to put your plans into practice. At this juncture, you need to pick up a proper name for your ecommerce business. Ideally, your business name should be closely related to your product and be easy to remember. You can further customize your business by choosing a logo to represent your mission. These things will help you in creating a distinct identity of the brand in the market. It will also be helpful in creating a niche market for yourself.

Also Read: How to Quickly Create an Online Store and Integrate a Payment Gateway

Take Care of Legalities

Every business is regulated by certain rules and legal requirements. Before you start your operations, you should make sure that your business is registered with proper authorities. You should also ensure that all the required fees and payments have been made. Ideally, the business name and logo should also be registered to protect your intellectual property. If you are entering into any collaboration with supply chain partners, then such partnerships should be ratified accordingly. It is generally helpful to take the services of a qualified legal professional to avoid any complications.

Automate

Ecommerce businesses are highly amenable to automation and the incorporation of technological tools. You should take advantage of these processes and incorporate them into your business. Some of the main examples of these tools are the billing processes and ecommerce payment gateway. Automation can not only free up your time, but can also help in optimizing the use of various resources including cash and human resources. Automation of services such as the use of ecommerce payment gateway also leads to smoother experience for your clients, thus promoting brand loyalty.

With the above points in your mind, you can easily navigate through the process of setting up an ecommerce business.

Also Read: How to setup your e-commerce store using Payshop

3 years ago
how-to-choose-an-online-payment-gateway
Mohab Ecommerce 0

For an online business, choosing an online payment gateway is one of the most important decisions. In order to do that, you should pay attention to a number of factors including customer satisfactions. It is important that your business provides smooth payment experience to the clients, while ensuring the safety and security of their funds and sensitive data.

Here are some of the guidelines that will help you choose the right online payment gateway to ensure that your clients get the best services.

Understand the Process

In order to make an informed choice, it is important to understand the process of online payment gateway system. It is a tool that authorizes credit card payments and other types of online payments for e-commerce transactions. When a client enters their credit or debit card information for online payment processing, then gateway encrypts the data and sends it to the payment processor. The payment processor is responsible for sending the request to the client’s bank, which may either accept or reject the request. This decision is again relayed by the payment processor to the payment gateway.

Fees and Charges

Pricing is another important aspect to keep in mind while choosing an online payment gateway. If the fee is charged on the basis of percentage then you should be careful about the volume of the business, as after a certain extent, these fees begin to pile up. Different payment gateways may charge different fees and expenses. You should make it a point to note that such fees are not excessive. Some of the most common types of charges are interchange, assessment, markup and processing. You should carefully analyze your business to find whether you should opt for flat pricing or tiered pricing.

Also Read: Switching Your Payment Gateway

Hosted or Integrated

While incorporating a payment gateway, this is yet another important factor to be kept in consideration. A hosted payment gateway redirects the clients to the payment processor’s platform for data input. On the other hand, integrated payment gateway is connected to your website using the gateway’s API for online payment processing. Here, customers do not have to leave the store to enter their financial data. However, this option will require you to undertake rigorous task of payment gateway integration.

Safety Measures

While it is important to provide a fast and smooth experience to your clients, it is equally vital to ensure that yours and your clients’ data is adequately secured. You should look at the technologies employed by various online payment gateways. Nowadays, a Payment Card Industry Data Security Standard or PCI DSS protocol is deemed to be the bare-minimum necessity. You should also consider the compliance level offered by the payment gateway. Further, it is also recommended to study the PCI Self-Assessment Questionnaire and completing Attestation of Compliance. You should also check whether your service provider offers regular software updates to ensure protection against cyber-attacks.

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

Study the Support System

Online payment gateway is an important component of an online store. On many occasions, you may require support system to help solve your payment related issues. Ideally, your online payment gateway should offer different modes of support system including chat service, telephonic support and email support. Further, your payment gateway should also be able to process different type of payments systems such as credit card, debit card, direct debit among other systems. If you are engaged in cross-border business, then you should be able to process different types of currencies as well.

To conclude

Choosing the right online payment gateway is not that difficult if you understand your business needs. All you need to do is consider all the factors discussed above before selecting the right provider.

4 years ago
challenges-and-opportunities-for-ecommerce-businesses-
Mohab Covid19 Resources 0

The current pandemic has dramatically changed the way businesses are functioning, struggling, and surviving. And while the e-commerce segment has been witnessing more demand than ever, owing to lockdowns and social distancing, they are not immune to certain challenges. However, COVID-19 also offers a few opportunities to e-commerce entities. Hence, running an online business during recession will require you to balance customer demand and supply smartly and watch your venture’s bottom-line as well. And all of that needs to be done in an empathetic manner.

So, what are the challenges?

  • During this pandemic, many e-commerce businesses are not being able to deliver with their original efficiency or speed. The reason is that not enough employees are available for this operation. Some online businesses have had to restrict delivery of non-essential products and only focus on essentials.
  • Stocking items that are not very common can become difficult during this crisis. Naturally, e-commerce stores might have to let go of some customers in the process, temporarily.
  • Shipping products can also take time due to lockdowns and local restrictions. Similarly, it might take time for customers to return the products that they don’t want.
  • Since now is the time when many first-timers will flock to online stores, enough customer support needs to be in place to help such shoppers navigate through your website.
Also Read:Startups living in uncertain times?

And here are the solutions and opportunities

As an e-commerce business, you need to remember that your customers are as anxious about the future as you. So, making your digital communications as clear and empathetic as possible is a good move. Your website must also state what you are doing to help the community and adhere to safety regulations. Some other solutions you can offer and opportunities you can make use of are:

  • Contactless delivery should be explored during this crisis, to assure customers that you are doing everything to contain the spread of the virus.
  • Offering essential products like everyday groceries, medical aids and hygiene items at discounted prices is also a good move. You can highlight such products on your webpage as well.
  • Online businesses will need to re-look at their website, layout, navigation system, and checkout process to see if everything is simple and easy to understand, even by those who are new to online shopping.
  • When it comes to examining the recession impact on e-commerce, you must note that many existing and potential customers might be out of jobs, struggling with loans or suffering salary cuts. So, extending payment dates for invoices might be a good idea during this phase. It can help boost their loyalty and establish long-term relationships.
  • If your business is going through a bad patch, if your inventory is low, or if you expect shipping delays, make sure these are clearly mentioned on your website, e-store and social media pages.

Further solutions and opportunities

  • COVID-19 is likely to enhance the prospects of businesses that deal in healthcare products, medicines, digital learning and entertainment products, and edibles and personal care items. Books, hobby kits and household cleaning products will also be in high demand for quite some time to come. Hence, promoting such items is a good idea. However, avoid hard-selling.
  • Offering a smooth and safe payment experience is crucial for an online business, especially during this economic crisis, as people will be more careful about frauds and losing money.Your customers may be reluctant to reveal their card information online due to the fear of scams. However, you can help allay such fears by collaborating with reputed online payment service providers.A reliable and efficient e-commerce payment gateway can offer multiple payment options, support many currencies, ensure a quick checkout and keep sensitive information safe.

All in all, the ongoing pandemic has brought several future opportunities in e-businesses to the forefront. All you have to do is make the most of them by tweaking your business strategy, powering up your online presence, understanding the changing needs of customers, and being empathetic.

Also Read:Transform your eCommerce today with PayTabs!

4 years ago