In the E-commerce ecosystem, there are many players and they all have their own different roles.
The entire E-Commerce ecosystem includes E-commerce websites, customers, digital marketing agencies, payment gateways, logistics companies, etc.
How to start your profitable E-commerce business?
Key Note #1: E-Commerce Eco System
E-Commerce Website
Let’s understand this through an example.
You are making food, like a Biryani. In this, we put different types of masalas and different ingredients. Every ingredient has its own role.
Bay Leaves, Black Pepper, and Kewra water each have their own role to play here.
Similarly, in this E-commerce ecosystem, there are many players and they all have their own different roles. If in your Biryani, any one ingredient is missing, or if you are not using any ingredient properly, then what do you say?
“It does not taste good and something is missing from this.”
Similarly, when you come to know that in this E-Commerce ecosystem what all happens and what is its role? Then, you can make the right mixture of it and even the customer will say, wow, it tastes so good.
So, let’s begin this exciting journey.
Let’s first begin with the customer’s buying behaviour.
For Example:
If you open your showroom or shop in the market or if you are a manufacturer selling your products to a retailer. The retailer has a shop where the customer buys the product.
Similarly, in E-Commerce, you have to open a Digital Dukaan, which is known as an E-Commerce Website. On this website, you will see:
Products – Listed
Details
Photograph
Pricing Details
Videos
Customer Feedback
Size
Colour variation
You will find all this information here. If you are selling a product which has different sizes and colours, you can also provide those details here.
This is done so that the customer can see all the information here and make a buying decision.
Your website should have 2 parts:
Frontend
Backend
Like in your showroom, you have a display area where the customer comes and your products are displayed.
There is also a warehouse in your showroom where you store your products.
When your display products get over, then you normally tell your shop or store assistant to fetch those items from the warehouse.
So similarly, in your Digital Dukaan, you have a frontend which acts as the display for your products and you have a backend where you do the rest of the work like:
Inventory
Pricing
Labeling
Order
All these things will be explained in-depth in the upcoming videos, for now, you will understand this concept.
Customer
The next player in this ecosystem is your customer.
You must have heard this saying, ‘If you have life, you have the world.’
Similarly, if you have customers, then you have a business. This is the ultimate truth for businessmen.
So, on one hand, you have your customer and on the other hand, you have your Digital Dukaan.
Digital Marketing Agency
To bring your customer to your Digital Dukaan, it is a digital marketing agency that will help you.
The role of a marketing agency is to use different methods to bring customers to your digital dukaan.
This is done through:
Social Media
Social Media Advertisement
SEO (Search Engine Optimisation)
Google Ads
E-mail Marketing
SMS
WhatsApp
When a customer has come to your Digital Dukaan and he has decided to buy a product, then you have to collect the payment from that customer.
For this, the next important player comes, which is called Payment Gateways.
Payment Gateways
These payment gateways collect the payments which are transferred to your account.
In India, there are many payment gateways like:
PayU
Razorpay
PayPal
CC Avenue
All these payment gateways collect payments through:
Debit Card
Credit Card
Net Banking
Wallets
Amazon Pay
Paytm
Google Pay
Let’s say you are thinking that, if a customer wants to pay through cash on delivery, then how are you going to collect the payment?
Logistics Company
This is the company that picks up your products from the warehouse and delivers it to the customer. Logistics companies are the backbone of your E-commerce business.
These logistics companies can deliver products to almost every pin code in India.
Now, let’s come back to the cash on the delivery case. If the customer chooses C.O.D, then the C.O.D has to be collected at the time of delivery itself. Your courier company will do this on your behalf. This payment will be transferred to your account by your courier company in about three to five days.
So, this was one customer’s purchase cycle in which you came to know which players are involved and what their work is.
Software Company
Now, let’s go over the backend or behind the scenes. There are lots of software companies here, who provide you with lots of tools like:
Warehousing Inventory Management Tools
Order Management Tools
Accounting & Reconciliation
Website Development Companies
- Packaging Companies
Packaging companies also provide you with services in which you pack your products and goods.
- Photographers
- Content Writers
All these players help you in running an excellent E-Commerce business.