Fundamentals of E-Commerce: from Amazon to ASOS and eBay

With smartphones and fast internet, users have embraced the world of E-commerce. Online shopping has become a norm, allowing people to purchase a wide range of products and services from the comfort of their homes: gadgets, video games, clothing, furniture, booking tickets and ordering food.

The "Whales" on which E-com hangs on

It’s been almost 30 years since the first sale online — of Sting’s new album, “Ten Summoner’s Tales.” Back then, buyer Phil Brandenberger paid $12 for the record and used a bank card to pay for shipping.
Today, E-commerce is undergoing a global transformation. In-app, on-site and point-of-sale online advertising reaches nearly 20% of all digital advertising. And experts estimate that by 2025, the share of social media shopping will reach $1.2 trillion.

E-commerce has successfully united marketplaces and services with online payment:

Marketplaces and online stores — AliExpress, Amazon, eBay, Shopify, ASOS, Coinbase, etc.
Mobile commerce — app and software stores, such as Google Play and App Store;
Supply chain management — courier and logistics companies, such as Wolt, Uber Eats, Glovo;
Internet marketing to attract and retain customers through various channels (social media, content marketing, search engine optimization);
B2B services for automation of data collection and warehouse management — CRM-systems (Bitrix24), tax and accounting (1C), platforms with no-code tools (Tilda).

What to sell? Services, physical and digital goods such as food, beauty products, dietary supplements, apparel, electronic gadgets and more depending on authorized GEOs and restrictions.
Who to sell to? Business is conducted directly with consumers (B2C) or other companies (B2B). E-com also considers C2B formats — for example, an outsourced performer (designer, programmer) offers his services or goods to large companies. And the C2C model is suitable for those users who directly provide services to the client, such as tutoring, confectionery, etc.

The everyday life of E-commerce: statistics

The rapid jump in digitalization and the general shift to an online economy has improved the conditions for the development of E-com. More than 5 billion unique users today have access to the Internet, and thus automatically become potential buyers.

The good news:

Global E-com retail sales have reached ~$5 trillion since 2021;
By 2023, there are over 2.14 billion online shoppers in the world;
By 2026, the E-com market size will grow at a CAGR of 56% and its value will break through a ceiling of ~$8.1 trillion
By 2027, global E-com revenue will grow at a 15% CAGR with revenues exceeding $27 trillion.

It’s now known that 69.4% of consumers use smartphones to make purchases. But what attracts them to E-com?

Free shipping — 50%
Promotional offers — 40%
Return policy — 33%
Quick shopping cart checkout — 31%

At this rate, by 2040, about 95% of all purchases will be made through E-commerce. That’s a great reason to get in place and launch a successful advertising campaign today.

Challenges for classic marketing: advantages & disadvantages of E-com

E-commerce continues to grow, actively using advertising technologies AR, AI, voice shopping, and sales through social media. All of this offers customers new opportunities to interact with brands.

The pros of E-com include:

No leasing retail space or hiring salespeople;
Reducing costs and making it easier to scale the business;
Ability to sell directly through a personal website;
Availability of in-depth analytics and call tracking;
Online presence to increase leads.

What is it about sales without the downsides? Here they are:

No internet access = no sales;
Difficulty in filing copyright protection for electronic goods;
Ongoing brand competition.

Entering E-commerce: What to look out for?

Among the global development trends in E-com is the growing demand for eco goods (e.g. energy-efficient refrigerators, lamps, goods made of recycled materials, electric cars, furniture made of eco-friendly materials).

By the way, AdSkill has a great case study on electric car sales. We have published it earlier.

Omnichannel shopping is a special approach to sales through different channels and platforms is gaining popularity. It allows customers to choose the most convenient way to buy and interact with a brand. For example, Starbucks often accompanies the client and works with him at all stages of the funnel.

NFT, AR and VR technologies are continuously being introduced into E-commerce to create engaging experiences for customers. A prime example was Nike’s $134,000 virtual sneakers case.

E-commerce experiences are a real challenge to traditional marketing — vibrant, fast, engaging for the consumer. The AdSkill team will help businesses successfully launch and grow their online E-commerce experience: develop effective marketing strategies, increase brand visibility and improve conversions. Take advantage of our comprehensive promotion solutions, agency accounts, and expert support to easily scale in the E-commerce era! And how to choose the most successful trends and promotion channels, we’ll help you understand in the following overview.