A very valuable guide to understanding e-commerce
Everyone talks about the profits that electronic stores achieve, but how does the store succeed in the first place so that it can achieve profits?
What does the consumer or buyer want?
First, you need to increase the product options. Whatever the number of goods, there must be a number of options. The customer does not like to be forced or restricted to a specific type of commodity, so try to have many and multiple options for your products.
How do some merchants and large companies compete in a few commodities?
The first answer is by artificial intelligence and the customer’s desire, to use technology and artificial intelligence. A large company like Amazon has an option called Amazon choice. For example, you are looking for a specific product that will give you several options, for example, the first two products give you two Amazon options.
Amazon chooses this item and this merchant based on artificial intelligence, it analyzes everything related to the product,
It analyzes the following:
- Option
- the quality
- Delivery speed
- Return feature
- Security
- Evaluation
- And a lot of other data.
Sometimes most companies use this data for their own benefit and not for the benefit of the merchant, as they get a very large number of data that you can use and know what matters to the customer and how to target it.
The company copies this data and puts it in its own products and gives it a priority in search engines.
- Many people can copy and imitate your product, but you cannot stand out, you can always compete and be distinguished and be better, and one of the most areas of competition that interests the buyer is the price.
- The user has many options and is very wide in the competition, but you can always attract the customer with the most attractive thing, which is the price and discounts, to the extent that it has become the most colossal company and its promise is the cheapest products
- In fact, there were expectations that there would be fierce and intense competition between the platforms of small stores and commerce giants such as Amazon and others, but the reality turned out to be very different.
- Small stores have a big role. They are actually a complement to the big stores and not a competitor. The customer has a relationship with a small store, for example, a local online store that he understands more.
But the question is, as a trader, what is the benefit? Sell on Amazon or sell in my own store or sell in small stores like Zed or Basket?
It is necessary for the trader to follow a strategy called Omni channel, that is, he has more than one place in which he sells, but he manages it from one place. The trader who depends on one place misses very large opportunities.
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The biggest example of the pandemic that has passed us I learned everyone, the merchant who was all dependent on his direct store on the ground without also benefiting from electronic commerce lost a lot and learned from this pandemic, and this is one of the examples.
Ok, now all the big stores are all launched, do you think you missed the digital commerce train?
Of course not, my friend, because this sector is promising and renewable, and there is always an inexhaustible demand. There is no such thing as you missed the train or you were late for the topic. It is ready when it starts.
According to the latest statistics in Saudi Arabia, only 4% of retail products are sold online. The percentage is very small, meaning that there is no very strong competition. The Saudi market is very large and has much more demand than supply.
Ok, so if the wave of electronic commerce is in its infancy and the base wave is growing day by day, does the infrastructure bear all these demands?
Is there a bottleneck that can slow this wave?
The biggest obstacle to e-commerce is delivery, there is no customer who likes slow delivery and he tells you, for example, that I have no problem with delivery within a month, for example, there is always the need and urgency for delivery as soon as possible
In the previous period and years, there were very few shipping companies, much less than today, today there are new shipping companies that appear every day, and the biggest reason is the increase in demand, that is, the problem of express delivery is in a remarkable development and there is a permanent shift.
With all these developments, the product is delivered within a few days, and if it is local, it will be delivered on the same day, and this is a good thing, other than when you forgot that you were ordering online because of the many delays in shipping.
How can you succeed in particular if you and all the merchants have provided all the conditions and pillars that we mentioned?
The answer is:
user experience.
- Usability of your site
- customers service
- Marketing Identity
- loyalty programs
- And many more.
- But the user experience is everything and the most important thing for your company and your store.
10 steps to establish a successful project to achieve your first million riyals
Why the first million? Because the first million net profit is the most difficult million, ask any successful person, any merchant, any millionaire, and he will really tell you that the first million is the most difficult and then it is easy because you start from scratch.
