The Ultimate Guide to Ecommerce Marketing
What is e-commerce?
The process of selling goods and services over the Internet is known as e-commerce. Customers visit the website or online marketplace and make purchases with electronic payments. The merchant ships the goods or provides the service after receiving the payment.
Electronic commerce has been around since the early 1990s, when Amazon only sold books, but it is now a multibillion-dollar industry that has grown even more during the pandemic. According to Digital Commerce 360's analysis of US Department of Commerce data, e-commerce spending reached $347.26 billion in the first half of 2020, up 30% year on year. In comparison, e-commerce sales increased by only 12.7% in the first six months of 2019.
It's hardly surprising. Consumers became accustomed to purchasing everything from food to furniture from online stores because they had few other options.
"We're certainly seeing several studies that show folks are going to keep their new habits," said Tory Brunker, director of product marketing at Adobe. "I truly believe this is our new normal."
According to McKinsey & Company research, several online shopping categories, including over-the-counter medicine, groceries, household supplies, and personal-care products, are expected to grow by more than 35%.
How does e-commerce work?
E-commerce follows the same rules as traditional retail. Customers visit your online store, look around, and then buy something. The main difference is that they don't have to leave their couch, and your customer base isn't restricted to a specific geographic area or region.
Running an e-commerce website involves the same steps whether you're selling running shoes or home supplies:
Accept the order.
The customer places an order through your website or e-commerce platform. An order will be placed and you will be notified.
Process the order.
Following that, the payment is processed, the sale is recorded, and the order is marked as complete. Payments are typically processed through a payment gateway, which can be compared to the online equivalent of your cash register.
Ship the order.
The final step in the e-commerce process is shipment. If you want repeat customers, you must deliver on time. As a result of Amazon, customers are accustomed to receiving items within two days.
Understanding the Basics of E-commerce Marketing
E-commerce marketing is a dynamic and rapidly changing landscape that provides businesses with limitless opportunities to connect with consumers in the digital age. Understanding the fundamentals of e-commerce marketing is critical for any organization seeking to thrive in today's competitive market, as it is a fundamental component of modern business practices.
The art of attracting, engaging, and converting online visitors into loyal customers is at the heart of e-commerce marketing. Targeting and communicating effectively with potential and existing clients requires a strategic mix of data-driven tactics, technological innovations, and a keen understanding of consumer behavior.
Effective e-commerce marketing is about harnessing a diverse range of channels to create meaningful connections and drive growth for your business, whether through search engine optimization (SEO), social media, email campaigns, or targeted advertising.
As the world embraces digital transformation, those who can navigate the complexities and capitalize on the potential of e-commerce marketing will find success, stay ahead of the curve, and, ultimately, sustain long-term profitability.
What are the types of eCommerce marketing?
1. B2C – Business to consumer
Everything you buy as a consumer is a B2C transaction: clothing, furniture, food, entertainment, and so on. Because the decision-making process for a B2C purchase is usually brief, the acquisition period is brief, and customer resistance is usually low. The most basic example would be fashion stores, which either exist entirely online or have standalone locations, such as ASOS or Adidas.
2. B2B – Business to business
A company that sells its products or services to another company. In general, the B2B model means a longer sales cycle but a higher order value. This category includes any online service (for example, Drift, a conversational marketing platform).
3. C2B – Consumer to business
When individuals sell products and services to businesses. For example, a platform that allows people to post work they can do and have companies bid on it. This category can also include affiliate marketing services.
4. C2C – Consumer to consumer
Consumers in this model exchange goods and services among themselves and typically make money by charging transaction or listing fees. Consider Craigslist and eBay.
With the continued growth of eCommerce, additional eCommerce Models have emerged.
5. D2C: When a company sells directly to its customers, it eliminates the distributor (and thus the overhead costs).
White label:
When a company imprints its name on a generic product obtained from a distributor.
Private label:
When a retailer commissions a manufacturer to create one-of-a-kind items for them to sell exclusively.
Dropshipping:
Marketing and selling of items fulfilled by a third-party supplier (such as AliExpress)
Subscription service:
Monthly/annual subscriptions are now available in almost every industry because they provide shoppers with increased convenience, flexibility, and savings.
E-commerce Marketing Strategy
Now that you understand the fundamentals of e-commerce marketing, let's put it all together and go over some pointers for developing a successful marketing strategy for your online store.
Set goals based on industry benchmarks.
There are some industry benchmarks that you can use to measure your goals against, depending on your industry, location, business size, and a variety of other factors.
Consider goals such as website visits, click-through rates, conversion rates, and customer acquisition costs, and compare them to those of other e-commerce businesses in your industry.
Break down your strategy into small tactics.
There are several paths you could take when developing a marketing strategy for your online store, many of which we have listed above. It may be tempting to pursue all of them, but doing so ensures that none of them will be effective.
We recommend that you begin by focusing on a couple of key strategies that you believe will have the highest ROI — and are the most accessible to you — and developing action items for each.
For example, suppose you decided to focus on a paid strategy to drive users to your store. Set up a Google Ads account, determine your ad spend, create an ad group based on your target keywords, and monitor your account daily.
This may appear overly simplistic — and it should. You don't want to get lost in the pursuit of the next "great e-commerce strategy" without thoroughly executing one and allowing it to work for you.
Delight your new and long-term customers.
Marketing does not end when a sale is made. Once a customer becomes a client, you should continue to engage, nurture, and delight them.
You'll be assisting your customers' long-term success, which will increase loyalty. It will also encourage your customers to share their positive experiences with your leads and target audience members via case studies, reviews, testimonials, and word of mouth.
Strategies for E-commerce Marketing
There are numerous strategies and tactics used to market products and services, but the following are the most commonly used strategies that consistently produce results:
Engage Customers with Email Marketing
Email marketing is one of the oldest forms of digital marketing in general, but it still produces results after years of use. It survives effectively because it is usually personalized and simple to use due to automation.
It's personalized in the sense that before you can access an individual's email, they must have been registered with your company in some way. The invention of automation and drip campaigns to give your business a needed push has made your job as a marketer easier.
Capitalize on Search Engine Marketing (SEM) and Search Engine Optimization (SEO)
Search Engine Optimisation is supposed to fall under Search Engine Marketing, but it has evolved into a potent tool in Ecommerce. SEO and paid ads are both part of SEM.
SEO is the use of keywords and content optimization strategically to generate organic, unpaid traffic. It is simply meticulous content development (such as blog posts) that makes a website easier to find. Stringing words strategically based on the most searched-for words and phrases while conveying relevant and meaningful content.
Paid ads are another aspect of SEM that dominates Ecommerce marketing. There are numerous marketing plans and platforms that support advertisements. This section focuses on social media marketing and PPC campaigns. The use of social networks for marketing purposes is referred to as social media marketing.
Twitter, Instagram, Facebook, and other social media platforms support this. While PPC campaigns entailed creating ads and finding relevant websites to place them on. When an ad is clicked, the user is redirected to your website. In exchange, you pay the previous site's owner.
Google Adwords is the most effective platform for running PPC ads because it will bring up your site when relevant keywords are typed in.
Leverage Market Affiliation / Affiliate Marketing
Affiliate marketing occurs when another website includes links to yours about a post that they have written. And, as with everything else in Ecommerce marketing, you will almost certainly have to pay. This is a very effective e-commerce marketing strategy.
Assume you sell dinner gowns and a smartphone user is looking for the best restaurants to host a dinner party. Assume you are associated with the author of a list titled Best Restaurants for Dinner Events. A list of Beautiful Dinner Gowns would most likely capture the searcher's attention after scrolling through possible restaurants. They are then transferred from the landing page to your product page.
Conclusion
E-commerce, or electronic commerce, has revolutionized the way businesses operate and consumers shop. It encompasses the buying and selling of products or services over the internet, providing convenience, accessibility, and endless possibilities. In this article, we have explored the concept of e-commerce, its various forms, and the impact it has had on businesses and consumers.
E-commerce has transformed the traditional retail landscape by eliminating geographical boundaries and time constraints. It has created a global marketplace where businesses can reach customers worldwide and consumers can access a wide range of products with just a few clicks. The growth of e-commerce has been fueled by advancements in technology, secure online payment systems, and the increasing adoption of mobile devices.
The benefits of e-commerce are manifold. It offers convenience, allowing customers to shop from the comfort of their homes and businesses to operate 24/7. E-commerce provides a platform for businesses to showcase their products or services, reach a wider audience, and increase sales potential. It enables businesses to personalize the shopping experience, offer tailored recommendations, and gather valuable customer data for targeted marketing strategies.