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The Origins of E-Commerce

eCommerce has become one of the most sort after areas of business investment opertunities in recent years, given the increasing numbers of consumers prefering to use online shopping to aquire hard to find items and ensure they are paying competitive prices, the Internet shopping expeirence soon consums those who tread into these shallow waters.

Investing into eCommerce has many advantages not least E-Commerce spending reached 8% of consumption by 2017, the long term stastainability of such companies typically remains relativly stable, with the market size increasing, and loyal customers becoming repeat buyers, leveraging upselling and special offers, it soon becomes clear why eCommerce marketplaces are growing expotentially each year, with a race to win in various marketing platfroms, such as adwords, facebook ads or twitter ads, according to the targeted market.

For example, people who use Google know already what they want and are activly search for a supplier, whereas people using Facebook are typically not in the business for the particular offering but are persuaded to purchas on a whim, having read an interesting article or being convinced by an advertorial. Twitter on the other hand is ideally addapted to finding niche markets, targeting those who show a keen interest in a particular subject. 

Therefore it is not surprising that these ad networks have become the largest magnets for the profits that are extracted from eCommerce companies. It always becomes one of the largest monthly bills for most online retailers while they are growing their loyal consumer base. Obviously the more you can retain consumers and lower your advertsing spend or by leveraging orgainic search results will positivly impact your bottom line. So it makes total sense to provide an outstanding user experince and ensure that consmers recieve what they were expecting and more. Good custmoer service online soon becomes its own postive feedback loop, and poor expereinces are typically not tollerated well online with many options to leave online reviews.

Dealing with customer engagement becomes a delicate balance between providing feedback and correcting the brand narrative that is being constructed in the minds of savy potential buyers who are quick to become armchair sluths while doing online due diligence on companies they are about to engage with. No one wants a bad expeirence and nowdays purchasing online comes with many easy tools and feedback loops that allow finding out more about who one is about to deal with becomes a necessary and easy pre-check. As well as looking at online reviews, one can check databases such as companies house, to seel the anulaised financial statements for a company as well as looking at gossip mentioning the company in places such as Facebook or Twitter.

Managing The Busineess

If you are interested in aquiring a passive investment portfolio of companies with a hands off expeirence, then you will need to automate all of the aspects of running the business. Such as the web management, the logictics and the marketing, leaving you with higher level tasks; for example many eCommerce businesses use fulfillment centers, while many also use reliable eCommerce development agencies to manage their web pressence, hosting, upgrades, and security magement. For advertising, depending on the creative nature of the individual involved, many entapaunures prefer to handle this aspect of the busineess themselves, while outsourcing graphic design and email marketing to third party agencies, while keeping a handle on the concepts, themes and marketing messages that they create. Such as trademark names, product names, brand names, and marketing stories and messages. It is these aspects of the business that create the brand culture.

Getting into the Business

If you are considering getting into this line of business, it would be a good investment to take some time to study a digital marketing major, as their are many courses and programs to study eCommerce which is an extreemly more useful degree than simply "media studies" or some vague diploma that really has no specifc focus with regards actually earning a living.

Getting out of the Businesss

Selling an eCommerce to another company can even be completly managed online, and this can provide liquidity to another entitiy who are able to levage more expeirence and time on the project, which most oftenly becomes the most easy way to exit the company and provides a lumpsum to the founders and managers. This is where platforms such as online market places for eCommerce company sales becomes the focus of our next article, where we discuss the due diligence and prices expected from such liquidations. These are very exciting times to be invested in this space both technically, financially and emotionaly. Feel free to contact us at any time with any offers you have of selling your own eCommerce company as we are always looking for such unique inversmnts where we can add our own layers of skills and technlolony to advance the platform before it undergoes a final sale.

 

 


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