E - Commerce is nothing but the buying of goods or services in an electronic marketplace such as the Internet. It was first introduced in 1979 and has since evolved with great complexity.
There are basically two types of E-Commerce. One is called B2B or business to business commerce and the other is B2C or business to consumer commerce. The B2C segment is much larger than the B2B segment when it comes to electronic commerce.
When it comes to E-Commerce today, names such as Ebay and Amazon immediately spring to mind. These are marketplaces where a consumer can find and select a product, and they pay for it online using a credit or debit card or Paypal. Statistics have shown that the travel industry and the bookshops have seen the largest growth in E-Commerce over the years.
Buying online is a growing trend. It is becoming more and popular everyday as it allows the consumer to choose wisely and hunt for the best available deals before deciding on a purchase. This is something that would be very difficult to do in the offline world where you will have to make several phone calls or physically visit many different shops to find the best deal.
Instead, consumers can browse the World Wide Web and search for the best deals. When a consumer decides to purchase a certain product or service from a particular website, the process is called a conversion. This is a very crucial factor to the success of an online marketplace. Let us discuss this in a little more detail.
You might have a great website that gets a lot of visitors but there is not much of a point to it if the visitors are not actually spending money on your website. Conversion rates on the Internet can be as low as 0.5% depending on how well your site is optimized to make a sale.
Conversions on an average are very low for most online businesses because they are not well optimized. A website owner can greatly improve the conversion rate of the consumer by making changes to the website. But how does one identify what changes are needed to be made? This is where website analytics come into play. There is a new breed of analytics called real time analytics that will allow a website owner to monitor his site as and when users visit it
With real time analytics, the online business owner can see which parts of the website are getting the most attention from the visitors. He will also be able to see what exactly is causing consumers to leave your website. Being able to watch consumer behavior live will greatly help a business owner to identify what needs to be changed on a website.
TIf one were to install analytics and actively make changes to the website, there is no reason why they cannot tremendously increase the conversion rates which is the most important factor leading to success in E-Commerce.