The Secret of Successful Business in 2019
Ideas for Newcomers in Online Trading
‘If your business is not on the Internet, then your business will be out of business’
- Bill Gates, Founder of Microsoft
And know what — Bill Gates wasn’t kidding when he said these words. The world has drastically changed with the advent of the Internet. It covers absolutely all spheres of human life and activities, and business isn’t an exception, of course. When it comes to online trading, the most common term nowadays is e-commerce.
Majority of us, who can perfectly surf the Internet, have interacted with e-commerce at least once, without even thinking of what exactly it is. Moreover, we can barely imagine a person under 45 who has never purchased goods or services via the Internet. No wonder. The advantages of electronic trading outweigh the ordinary mode of buy & sell, enabling customers to find desired products at affordable prices, or businesses to sell non-stop. And this is just a minuscule part of all the benefits of e-commerce I will probably tell you about the next time. But this post will reveal the secret of success of two e-commerce giants and will float you some profitable e-commerce ideas for a successful business in 2019.
There are few main business models to talk about, when it comes to e-commerce:
1. Business to Business (B2B) sales model represents trading relationship between 2 companies, where products and services are marked to other business.
2. Business to Customer (B2C) sales model represents commercial relationships between a business offering products or services to end customers.
3. Customer to Customer (C2C) sales model represents online trading relationships between customers only, when they can trade with each other.
Even if you hear these business models for the first time, you have definitely heard of their global representatives at least once. Amazon and eBay — the biggest players in e-commerce which dominate online marketplace for more than 20 years. Think their founders could reach such a big heights selling in a brick and mortar store? I doubt. Moreover, I am strongly convinced that exactly e-commerce helped them succeed and reach global and lasting fame, providing second-to-none customer service. Hence, Amazon.com Incorporated is one of the largest B2C electronic commerce companies in the globe, while eBay is the world’s largest and most successful C2C online auction marketplace. Despite the fact that these websites belong to different business models, they have one thing in common — the trading experience via the Internet.
I am curious: whether the founder of Amazon Jeff Bezos could predict a big success like this in 1994 when he launched the website. Few are aware that initially Bezos set up a shop in the garage full of books in his Seattle house and some time later Bezos was selling books already on Amazon. In its first two months, the advantages of being online were apparent. According to Investopedia, Amazon sold books in all 50 states as well as more than 45 countries, bringing in $20,000 in sales per week by late 1995.
Amazon attained such a huge level of popularity that Time magazine named Bezos its 1999 Person of the Year. Already in 2004, selling a wide array of products from books and CDs to clothing, electronics and more, Amazon brought in revenues of $6,9 billion, which increased to $8,5 billion in 2005. The program’s success led Amazon to launch it in Germany, Japan, the United Kingdom, France, Italy and Canada over the next eight years. According to Forbes, Amazon earned $427 billion by May 2017. Impressing, isn’t it?
You may say: “OK, it’s clear with Amazon. But what about eBay? It mostly sells second hand items. How could a website like this reach such a great success offering new and used products?”
The history of a great company is always interesting. Their ups and downs, their pinnacles and valleys, their victories and defeats, all play a role in their eventual but ever-changing status. Thus eBay is one more ‘garage band’ type startup, settled by Pierre Omidyar in 1995. Success found eBay pretty early in the game as they experienced over 7,2 million dollars worth of sales within the first two years of business. The virtual shopping center eBay sold its one million item already in 1997. And now, more than 20 years later, it is still considered the master of the online auction, with no other auction-based business coming close to its success.
Well there are few lessons we all should draw from the success stories of Amazon and eBay:
1. Start selling in your garage.
2. Go globally due to e-commerce.
Well, yeah, I’ve joked about the garage, but not about online trading. Let’s face it: efficient sales are possible only due to electronic commerce.
So why is e-commerce so important?
E-commerce isn’t a luxury. Global e-commerce is a necessity for every entrepreneur who isn’t eager to accept small sales. It is also a necessity for consumers, who want to purchase products at more affordable prices, than is offered by retail shops, or to buy products which are inaccessible at his or her location. In order to make this information not baseless, I’m going to explain the large scale of electronic commerce using real numbers and facts.
E-commerce is a global phenomenon, and in almost every country the industry is growing at a healthy rate. In 2017 global e-commerce reached around $2,3 trillion and is expected to hit $4,5 trillion in 2021 (according to Statista report).
According to Business.com, the world’s biggest e-commerce markets are as follows:
- China: $672 billion
- United States: $340 billion
- United Kingdom: $99 billion
- Japan: $79 billion
- Germany: $73 billion
- France: $43 billion
- South Korea: $37 billion
- Canada: $30 billion
- Russia: $20 billion
- Brazil: $19 billion
Almost 40% of Internet users worldwide have bought products online via desktop, tablet, mobile, or other online devices. This amounts to more than 1 billion online buyers, the number that is projected to grow continuously. Moreover, e-commerce eliminates the distance between businesses and customers from every part of the world and can help generate repeat sales and deepen customer engagement.
Jeff Bezos once said, ‘If you do build a great customer experience, customers tell each other about that. Word of mouth is very powerful’. Indeed, satisfied customers can boost your business, while unsatisfied can ruin it. Furthermore, 92% of consumers draw attention to feedbacks and other recommendations when purchase online. So it is essential to provide great customer service in order to stay ahead of the competition.
Ideas for newcomers in online trading
E-commerce continues to evolve at a rapid pace, and you need to keep up with the latest developments. Do you have a big idea that could be the next eBay or Amazon success? If no, here are some inspiring ideas for successful e-commerce business for 2019 suggested by Profitable Venture Magazine and interpreted by me.
1. Automotive Parts and Accessories Business
This kind of business offers huge segment of items for sale due to the vast number of automobiles that ply the roads. This business idea is also full of niches and sub-categories for any e-commerce entrepreneur to find a significant amount of opportunity to thrive in. And it is profitable sphere of course.
2. Social Media Consultancy Business
As a company providing social media consultant services, your business will easily grow on the Internet. As a social media consultant, you will advice your clients on developing online media campaigns and help them manage their presence on popular social networking sites such as Facebook, Google+, Twitter and LinkedIn.
3. Online Currency Exchange
It’s a rare business model. However, this area is useful for clients that are always on the go, and would need a trusted online exchange they could go to.
4. Electronics and Accessories Business
This is the most popular category in electronic trading. As the world of electronics develops with enormous pace, the products are always in high demand. A good website offering qualitative electronic devices and accessories for sale can be very profitable.
5. Online Book Store
People still read and prefer to do this in old-fashioned manner — using paper books. A good online book store with famous books from all over the universe is a discovery for book fans.
6. Merchandising Platform
An online merchandising platform is very profitable business idea niche. Your business is an middleman which can help connect online retailers with suppliers or large retailers with smaller online stores.
7. Online Escrow Payment Solutions
Your company fulfills functions of an authorized third party in a transaction in order to guarantee secure payment procedure most often among seller and buyer, minimizing any risks and possibilities of fraud. An escrow company provides services of holding an amount of money from one party that can be only released once the specific conditions are met by both parties. Thus, escrow has one main priority — the guarantee that all conditions needed are fulfilled. This form of business gives a wide range of opportunities due to large number of websites selling goods and services, and being interested in such a security regulations.
8. App and Software Testing Services
Every app and software developer needs testing services. And you may create a company able to provide effective services in this field. The most important for you as for a business holder is to hire skilled staff with profound knowledge in software and testing.
9. Translation Services
It’s not about online vocabularies. However, why not? Entrepreneurs going into this field can decide to go into a specialized niche such as video interpretation or document translation. The only criteria needed is to be proficient in one or two foreign languages or to hire qualified staff in this domain.
10. Affiliate Marketing
Affiliate marketing is an additional source to profit from your website. Whatever the field of the website you are running, you may get commissions from referral services you provide to other companies with no investments, difficulties or efforts.
‘The e-commerce industry is a force that no investor can afford to ignore’
- Cushla Sherlock, Group CEO engagements and Group Strategy communications at ‘Swiss Re’; ex-Assistant Vice President, Corporate Communications at ‘Credit Suisse’
All you need is to find the niche that interests you and that, which you have a knowledge or passion for and take the massive opportunities of e-commerce. Remember that success is saved for the stubborn, persistent, those who are obsessively focused on succeeding, and won’t take ‘no’ for an answer. And no matter what niche you choose for starting a business, either selling goods or services, it has a big chance for success if it is present online.
If you have a business or are starting one soon, think about how you will represent your story and your company message to the world :)