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Balance of Trade (BOT): Definition, Components, and Calculations

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What is the Balance of Trade?


The Balance of Trade (BoT) is the difference between the total value of exports and the total value of imports in a given period. It is also known as trade balance, commercial balance, or net exports (NX).

Balance of Trade is to be paid as a measure of the value of goods and services locally at outsourcing (exportation) plus that of the products being imported (imported) over the course of the period. Consequently, the BoT is considered as the main economic indicator of international commercial activities of payment and an important parameter for evaluating economic consumption.

While the total value of exports is superior to all imports, the Balance of Trade is positive and has commercial excellence. An excellent commercial sign that pays a profit in international commerce. The government can use the additional budget to increase local investments to improve the level of living or foreign investments to create new sources of return for the country.


While the total value of exports is lower than that of imports, the Balance of Trade is negative and has a commercial deficit. A commercial deficit that pays less than it does not increase on the world stage. Consequently, the government shall pour a counter-meter in place of new taxes or print other payments or international monetary organizations such as the International Monetary Fund (IMF) to cover the budget slopes.

BoT is the largest part of the balance of payments (BoP), which is the balance of international financial activities of a country. It consists of a current account (international commercial transactions), which includes BoT, and a capital account (international investment transactions).


BoP is the sum of all incoming and outgoing transactions between the economic entities of a payroll and the rest of the world. In theory, the two components constantly balance and produce a balance of zero-sum payments. However, the different economic policies and fluctuations of the change rates driven by the discharges.

Components of Balance of Trade

Economic products including in the calculation of Balance of Trade are classified in goods or services and their prices have a direct influence on the values ​​of export and import.

Goods are tangible materials produced locally, providing nutrition and energy supplies.

Services are based on human interactions and implicitly taking a bite or taking away the responsibility of a piece. The port of the services can be used for diversion and training at the same time and place.


The prices of goods and services depend initially on production coats such as primary materials, storage, transport and personal dispensers. For example, ground fluctuations occur at the manufacturers of petrol products to adjust their prices to reflect changes.

The productive profit margin of the manufacturer is augmented as a function of local off / demand ratio. The volumes of supply and demand vary depending on the companies and are heavily affected by the economic and fiscal conditions that lead to inflation and taxes.

External demand is the final determinant of prices. As long as the foreign currency is higher than the local currency, the companies naturally prefer to export their products and realize the most elevated benefits. Consequently, the export routes are continuously increasing, which are retrospectively feasible for the foreign accelerators.

On the other hand, an industry with an exquisite demand encourages companies to import products, preferably to pay at low prices and increase the total value of imports. In other words, the nominal prices on the internal margins increase and reduce the value of the exports.

How to Calculate Balance of Trade?

In order to compare imports and exports, Balance of Trade with evidence of the effectiveness of international commercial activities of a country. The BoT formula is as follows:

TB (Balance of Trade) = X (total value of exports) – M (total value of imports)

The calculation can vary according to pay. For example, the main ratio of the Balance of Trade of the euro area to France does not match the prices and does not account for the services. The French Balance of Trade of services is calculated separately and the two categories are regrouped in a different report.

How the Balance of Trade Affects the Economy?

The Balance of Trade reveals that it generates additional resources beyond its local capacity at the end of the value. As an important indicator of economic growth potential and constituting an important part of gross domestic product (GDP), governance and central banks are closely monitoring BOT figures to augment their policies. Commercial excellence is generally the PIB, although there is a commercial deficit of capacity.

Beneath the breakdown of wages indicating a positive commercial balance, an excess or a deficit in the index without necessarily a force or an economic failure. BOT figures must be interpreted in the context of current economic conditions, economic policies, and the economic cycles of the country.

Export- and Demand-led Growth Strategies

During a period of economic recession, the government can adopt and stimulate the Greek economy with a crop-driven export strategy. The objective is to think of the outsourced resources being paid by increasing the volume of the outlets to the outsider. Consequently, an excellent commercial deficit is considered as a result of a commercial deficit and a political deficit.

However, if the economy is expanding, an economic contraction policy will be used to keep inflation rates at bay with demand-driven demand. The importation of more foreign goods and services could favor competition by prices in the national economy. Consequently, a commercial deficit leads to a natural consensus, which is an exceptional commercial signifier of inefficient import activities.

Trade wars

If health and economic efficiency are important, other factors will flow out of their respective economic policies. Commercial warfare between the largest consumer and the largest producer of the world, the United States and China, is a good example.

United States. a short-lived trade deficit with China, amounting to $ 375 billion in 2018. As a result, President Donald Trump has accused China of violating international commercial practices with the United States by manipulating foreign exchange, the volume of owned intellectually and with an accent resting on the march.

China responds to accusations by suggesting that Trump is trying to impose economic power on China. Consequently, the commercial warfare proceeds only to the United States deciding to apply a tariff of 25% on various Chinese products and also rapidly increasing it to the extent that the advantage of double standards being imposed on Chinese imports.

Considering that the United States adopts a cross-cutting strategy driven by demand, common and diffuse imports are a contradiction to economic policy. Measuring that import figures are declining, the US commercial deficit remains constant and falls within the value of the US dollar in relation to other currencies.

Balance of Trade as an economic indicator

Balance of Trade is a retarded economic indicator and is not retrospective. A positive BoT digit indicating that the total value of exports increases augmented that imports during the reference period, even as a negative commercial balance ratio suggests the opposite. Several factors that influence the commercial balance:

  • Principal national industries and their internal conditions such as local supply/demand
  • Coats of primary materials and intermediate goods
  • Fluctuations in change rates
  • Commercial policies, taxes, regulations, and restrictions
  • International relations with the main commercial partners
  • Personalized controls

In financial transactions, the BoT is used as an economic indicator of the economic viability of payroll and its proximity to economic policy objectives. Commodities following BoT publications to evaluate the performance of international trade pay and reduce the potential for the crop is to be realized and expanded. It is considered a good predictor of PIB and government budgetary policy futures.

How to use the Balance of Trade reports?

Balance of Trade is an important part of the actuality. The effect of the ratio on the value of currency differs from economic policies and sentiment. An increase in commercial output in an economy driven by exports exhibits a positive effect on the economy, while for an economy driven by demand, there is a growing increase in the commercial deficit.

READ ALSO: BACKTESTING TRADING: Definition, How It Works and Examples

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How Does ELECTRONIC RETAILING Works: E-tailing vs E-Commerce

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Electronic-Retailing

Electronic retailing (e-Retailing) or online retailing is the sale of goods and services over the Internet. E-retailing can include business-to-business (B2B) and business-to-consumer (B2C) product and service sales. With e-tailing, companies must adapt their business models to capture Internet sales. This also includes the development of sales channels such as warehouses, Internet websites, and product dispatch centers.

How Electronic Retailing (E-Retailing) works

E-retailing spans a wide range of businesses and industries. However, there are similarities between most e-commerce businesses, including having a responsive website, an online marketing strategy, efficient product or service distribution, and analyzing customer data.

Successful e-retailing requires a strong brand. Websites should be attractive, easy to navigate, and regularly updated to meet the changing needs of consumers. Products and services must differentiate themselves from competitive offerings and create added value for consumers’ lives. Also, a company’s offerings must be competitively priced so that consumers don’t prefer one company over another based on cost.


Electronic retailers need strong distribution networks that are fast and efficient. Consumers cannot wait long for products or services to be delivered. Transparency in business practices is also important for consumers to trust and stay loyal to a company.

There are many ways that businesses can generate income online. The first source of income is, of course, selling your product to consumers or businesses. However, both B2C and B2B companies could generate revenue by selling their services through a subscription-based model like Netflix, which charges a monthly fee to access multimedia content.


Income can also be generated through online advertising. For example, Facebook generates revenue from the ads that companies display on their website that they want to sell to Facebook users.

Types of e-retailing

Business-to-consumer (B2C) e-commerce

Business-to-consumer retail is the most common of all e-commerce businesses and the most familiar to most Internet users. This group of retailers includes companies that sell goods or manufactured products to consumers online directly through their websites. Products can be shipped and delivered from the company’s warehouse or directly from the manufacturer. One of the main requirements of a successful B2C retailer is maintaining good relationships with customers.

Business-to-business (B2B) e-commerce

Business-to-business retail includes businesses that sell to other businesses. These retailers include consultants, software developers, freelancers, and wholesalers. Wholesalers sell their products in bulk from their manufacturing facilities to companies. These companies, in turn, sell these products to consumers. In other words, a B2B company like a wholesaler can sell products to a B2C company.

E-tailer Examples

Amazon.com (AMZN)


Amazon is the largest online retailer selling consumer products and subscriptions through its website. Amazon’s website reveals that the company had sales of more than $ 230 billion in 2018 and at the same time generated more than $ 10 billion in profit or net income. Other electronic retailers that work exclusively online and compete with Amazon are Overstock.com and JD.com.

The Alibaba Group (BABA)

Alibaba is the largest electronic retailer in China operating an online commerce business in China and internationally. Alibaba has introduced a business model that not only includes B2C and B2B trade.

They connect Chinese exporters with companies around the world looking to buy their products. The company’s Rural Taobao Program helps rural consumers and businesses in China to sell agricultural products to people in urban areas. In 2018, Alibaba had nearly $ 40 billion in annual sales and just under $ 10 billion in profit.

E-tailing advantages and disadvantages

The benefits of electronic retailing include:

  • Easy Market Access – In many ways, market access has never been easier for entrepreneurs. In online marketplaces like eBay and Amazon, anyone can set up a simple online store and sell products in minutes. See the sale through online marketplaces.
  • Reduced Overall Costs – Selling online eliminates the need for expensive retail stores and customer-facing employees, so you can invest in a better customer and marketing experience on your e-commerce website.
  • Rapid Growth Potential- Selling on the Internet means that traditional restrictions on retail growth: e. B. Finding and paying for larger products are not essential factors. With a good digital marketing strategy and a plan for an order fulfillment system at scale, you can respond and increase sales. See Planning for e-commerce.
  • Expand your market/export – A great advantage over local retailers is the ability to expand your market beyond local customers very quickly. You may find that your products are in high demand in other countries, and you can respond to this with targeted marketing, offering your website in a different language, or working with a foreign company. See Export basics.
  • Customer Intelligence – The ability to target new customers using online marketing tools and website analytics tools to better understand your customers’ needs. Read more guides on how to improve your customers’ experience

Disadvantages of E-Retailing

Some negative aspects of electronic retailing are:

  • Website Costs: Planning, designing, building, hosting, securing, and maintaining a professional eCommerce website is not cheap, especially if you expect large and growing sales volumes. Check out the common pitfalls of e-commerce.
  • Infrastructure Costs: Even if you are not paying the cost of customer space, you need to think about the cost of physical space for order fulfillment, merchandise storage, returns processing, and staffing for these tasks. See Fulfill orders online.
  • Security and fraud: The growth of the online retail market has drawn the attention of sophisticated criminal elements. Your company’s reputation can be deadly if you don’t invest in the latest security systems to protect your website and transactional processes. See Ecommerce Errors: Security Vulnerabilities.
  • Legal Issues: Dealing with e-commerce and the laws can be challenging. You must know and plan how to deal with the additional customer rights associated with online sales. Check the law and sell online.
  • Advertising Expenses: While online marketing can be a very efficient way to attract the right customers for your products, it requires a generous budget. This is especially true when competing in a crowded industry or for popular keywords. See pay per click and paid search advertising.
  • Customer Trust: Establishing a trusted brand can be difficult, especially without a physical company with a history and face-to-face interaction between customers and sales reps. You should consider the cost or the establishment of a good customer service system as part of your online offering.

E-tailing vs e-Commerce

E-tailing is the implementation of business processes on the Internet. Electronic commerce (electronic commerce or e-Commerce) is the purchase and sale of goods and services, or the transfer of funds or data through an electronic network, mainly the Internet. E-commerce generally creates a platform for sellers to offer their products or services to consumers.

Do you want to start online retailing? Check out 6 Easy Steps to Developing a Business Plan Outline for your business

RELATED: E Marketing: The Ultimate Guide

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Marketing Environment: Definition, Concept & Best Practices (+ Case Studies)

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If you take a real quick retrospect you’ll realize that even in our daily non-business lives we make tons of mistakes because we neglect our environment. These mistakes can cause lots of damages and at the extreme of this spectrum, can cause demise. So also in business, a company can neglect its environment so much that it can lead to its demise; especially its marketing environment.

As you might have figured out, the marketing environment are forces that a company must not act against in order to stay profitable in business and at the least maintain an expectant market valuation. Let’s take a peek on an example of the marketing environment. A commercial-scale farm that plants crops throughout the year. If it’s based in sub-Saharan Africa and depends on rainwater for irrigation, it’s faced with drought during the dry season. The changing season is a natural force here. And the farm-owner has to provide a source of irrigation during the drought period else profit will plummet.

The list below highlight the concept of the marketing environment :

  1. Factors that affect businesses:

    This perhaps ranks highest among all the concepts of the marketing environment. The basic idea is if you can’t influence the market let the market influence you. Decisions you made and those made by other establishments can affect your marketing environment and considering this you don’t go against the tide, always go with the big numbers. This is one major marketing concept for small business

  2. Effect of time:

    Timely intervention is paramount in every aspect of life. In most organizations, there is a penalty for the lateness this also applies in the marketing environment. Any change in your marketing environment should be acted upon aggressively and if you ain’t proficient in the new change at that time, hire skilled people so you don’t fill the market with shabby products.

  3. Power of the unexpected:

    If you are a Forex trader then you’d probably been hit by the reality of this. Watchful waiting, you have to be doing that. Therefore avoid complacency and the thought that you’re in control of your market. Nokia is a good victim of this.

READ ALSO: WHY NOKIA FAILED AND 4 WAYS TO PROTECT YOUR BUSINESS

COMPONENTS OF MARKETING ENVIRONMENT


Let’s talk about the components of the marketing environment. As you already know the way a company plays to the forces that affect its market environment are important determinants of the prospects of the company. These forces can be broadly divided into two main components. The internal and external environments.

THE INTERNAL ENVIRONMENT

The internal environment as a component of the marketing environment is important forces within the boundaries of a company. Let’s break it down with these 5Ms. Men, Money, Machinery, Materials, Marketing strategy.

  1. Men:

    An efficient and effective workforce with a good work ethic and interpersonal relationship is handy if you must have a decisive advantage over your competitors in the market. And each person in every department must work with the concept of the marketing environment in their mind.

  2. Money:

    Yeah, you need a good budget for the finance at your disposal as this will help in your marketing and sales activities. For example, a small business that can’t afford a full-fledged in-house marketing team can resort to hiring outside contractors.

  3. Machinery:

    You can have the best team in the world but with a below standard working tool. They will find it difficult to squeeze out good success from the market cos this will affect their efficiency.

  4. Materials:

    You should work hard always to deliver products that are appealing to your customers. Therefore, make improvements, introduce innovations, and retain the ones that sustain the audiences’ interest. Google is a good example of this, they make too many innovations, after some years they archive the ones that didn’t thrive well in the market and keep those that are doing a great job.

  5. Marketing strategy:

    A comprehensive review of marketing strategies should be done by businesses from time to time to know the ones that are most compatible with their marketing environment.

    Read Also: CPA Marketing Guide 2020 (+ Free Course)

THE EXTERNAL ENVIRONMENT

The external environment consists of factors outside the boundaries of the company. The factors that are under this component of marketing environment would be further divided into the micro and macro external environment. These 2 components of the external marketing environment are not as within control of the business owner as the internal marketing environment. So, Let’s take a good look at them.

Micro component of the external marketing environment


This component of the external marketing environment consists of factors that are usually directly related but outside the boundaries of the company. It consists of customers, partners, and competitors.

  1. Customers:

    The signature phrase of Jeff Bezos when he started Amazon.com was ‘customer obsession’. Consequently, he would place an empty chair, which is a symbol of the customer, in company meetings reminding major decision-makers the role of the customer. So, you need to understand your customers, create campaigns properly targeted at them, and most importantly, provide a good customer care service that will help ingrain your business as part of their daily life.

  2. Partners:

    These refer to marketing intermediaries, financiers, and advertising agencies. Marketing intermediaries are people that help promote, sell, and distribute their products to final buyers. They include resellers, physical distribution firms, and financial intermediaries.

  3. Competitors:

    A company must have a good understanding of the big boys in their industry and know their position relative to these big boys. They can learn from these guys and even develop strategic advantages over them.

Having gone through the micro-component of the external marketing environment let’s progress to the macro-component of the external marketing environment.

Macro component of the external marketing environment


This component is the furthest away from the control of a firm, it consists of factors that affect the whole industry where a company functions. They include demography, economy, natural forces, technology, politics, and culture.

  1. Demography:

    A shoe manufacturing company produces kids’ shoes in quantities much larger than the real population of that age range in the market. Now the end result of this is chaotic but it happens folks. So a business ought to consistently update itself with the relevant demographic data of its market.

  2. Economy:

    Investment rates, inflation rates, exchange rates influence the marketing environment. Individuals will buy products when they can afford it. Inflation weakens the purchasing power of currency and this can have a crippling effect in a market.

  3. Natural forces:

    The annual report of the British Petroleum plc as at the end of 2013 on proved global oil reserves estimates that the earth has nearly 1.688 trillion barrels of crude. Afterward, companies in the industry started reacting to discover new oils by application of A.I. This is a good example of natural forces affecting the whole industry in a marketing environment.

  4. Politics:

    Big companies that lobby the legislature of different countries understand this very well. Because it will result in the legislature enacting laws that help them thrive.

    Read also: MARKETING DEPARTMENT: Overview, structure, roles, expectations (+free tips)

MARKETING ENVIRONMENT ANALYSIS

So, now you know about the concept and components of the marketing environment. But how do you get a good grip on these forces? It’s not so hard. With this in mind, let’s talk about Marketing environment analysis. Since the employer can control his internal environment but has less control of the external environment. Market environment analysis tools are available to help with the external environment. So, there are lots of these tools. But the PESTLE tool is the most popular because of its simplicity and efficiency. In fact, some small businesses use just the PEST tool which is simpler. Now, we’re gonna list the things to consider under each factor in the PESTLE market analysis tool.

  • Politics:

    Future government stability, foreign government policies, the extent of government involvement in trade unions, tax laws.

  • Economic factors:

    Labor cost, interest rates, fiscal and monetary policy, stock market trends, inflation rate, exchange rate.

  • Social factors:

    Buying behavior, income level, family size, attitude towards saving and investment.

  • Technological factors:

    Rate of technological advancement, communication infrastructure.

  • Legal factors:

    Consumer protection laws, employee protection laws, Government procurement laws, Laws of health and safety at the workplace.

IMPORTANCE OF MARKETING ENVIRONMENT

No matter what. Don’t let this knowledge slip outta your mind, “moving with the tide in business has lots of benefits”. So, real quick, let’s take a look at the importance of the marketing environment.

  1. Understanding customers:

    You can use any method to ingrain this importance into your head. Customers are the sole aim of every business. So if you go against them you might not like the end result.

  2. Exploiting the trends:

    You never move against the trend in any industry. It is just uncool to do that.

  3. Timely identification of threats and opportunities:

    This importance helps the business to position itself always on a solid foundation despite what that’s going on in the market. For instance, Jeff Bezos is a good example even with the current pandemic his net-worth is rising.

  4. Understanding competition in your niche:

    The concept of the marketing environment helps businesses realize every opportunity presented by competition and strike decisively.

So far so good. From the concept to components, then to the importance of the marketing environment. Now the next stop is for you elite readers, that read till the end.

GOOGLE: A CASE STUDY OF SUCCESSFUL MARKET ENVIRONMENT


This section is based on a study published on springeropen.com by Sang Kim Tran. I’m gonna highlight important areas relevant to this article.

  • Operating HR is a field of science at Google. They are constantly experimenting and innovating to find the best way to satisfy employees and to help them work effectively.
  • Google made an important acquisition to buy Youtube… Youtube has grown to become the world’s largest online video sharing service
  • Every company wants to hire talented people to work for them… realizing this impact, Google created a distinctive corporate culture when the company attracted people from prestigious colleges around the world.
  • The role of flow and building capacity for innovation… flow is the movement of information or equipment between departments, office groups, or organizations… flow plays a role in getting stakeholders involved in working creatively and innovatively… Definitely, Google gets it done very well.

Most highlights of this study show Google’s proficiency in handling their internal marketing environment. In addition:

  • Google acquired Android, made it open source, created OHA (Open Handset Alliance). So, this made android to successfully rival against iOS and change the mobile phone market trends.
  • Most of Google’s products are free for users further making business miserable for iOS.

Damn, Google is a class on its own.

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Electronic Commerce (e-commerce): Definition, Websites, Advantages, and Disadvantages

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What is eCommerce?


E-commerce, or electronic commerce (sometimes referred to as e-commerce), is a business model that enables companies and individuals to buy and sell things over the Internet.

Types of e-commerce models

E-commerce can be divided into four main categories. The parties involved in the transactions are the basis of this simple classification. So the four basic e-commerce models are as follows:

Business to Business(B2B)

These are business-to-business transactions. Here companies do business with each other. The end user is not involved. Therefore, only manufacturers, wholesalers, retailers, etc., participate in online transactions.

Business to Consumer(B2C)


Here the company sells its goods and/or services directly to the consumer. Consumers can browse your websites and see products, images, and reviews. They then place their order and the company ships the goods directly to them. Popular examples are Amazon, Flipkart, Jabong, etc.

Consumer to Consumer(C2C)

From consumer to consumer model is where consumers are in direct contact with each other. There is no company involved. It helps people sell their personal property and assets directly to an interested party. Generally, the goods that are traded are automobiles, bicycles, electronics, etc. OLX, Quikr, etc. follow this model.

Consumer to Business(C2B)


This is the opposite of B2C, it is from consumer to business. Therefore, the consumer offers the company a good or service. Take, for example, an IT freelancer who demonstrates his software and sells it to a company. This would be a C2B transaction.

e-commerce examples

Electronic commerce can take various forms, including different transaction relationships between businesses and consumers, and different objects that are exchanged as part of these transactions.

Retailer:
The sale of a product by a company directly to a customer without intermediaries.

Wholesale:
Selling products in bulk, often to a retailer who then sells them directly to consumers.


Dropshipping:
The sale of a product manufactured by a third party and sent to the consumer.

Crowdfunding:
The act of raising funds from consumers before a product is available to raise the seed capital needed to bring it to market.

Subscription:
Recurring automatic purchase of a product or service on a regular basis until the subscriber cancels.

Physical products:
Any tangible asset that requires inventory to be replenished and orders to be physically shipped to customers when sales are made.

Digital products:
Digital products, templates, and courses or downloadable media that must be purchased for consumption or licensed for use.

Services:
A skill or set of skills that are provided in exchange for compensation. Time from the service provider can be purchased for a fee.

eCommerce advantages and disadvantages

Pros

  • E-commerce offers sellers a global reach. They remove the local barrier (geography). Now sellers and buyers can meet in the virtual world without hindering the location.
  • E-commerce will significantly reduce transaction costs. This eliminates many fixed costs for the maintenance of stationery stores. This allows companies to generate a much higher profit margin.
  • It enables fast delivery of goods with very little effort on the part of the customer. Customer complaints are also responded to quickly. This saves time, energy, and effort for both consumers and the business.
  • Another great benefit is the convenience it offers. A customer can shop throughout the day. The website is functional at all times and does not have business hours like those of a company.
  • Electronic commerce also allows the customer and the company to come into direct contact without intermediaries. This allows for fast communication and transactions. There is also a valuable personal touch.

Cons

  • The start-up costs of the e-commerce portal are very high. Hardware and software setup, employee training costs, and ongoing maintenance and repair are quite expensive.
  • While this seems safe, there is a high risk of failure in the e-commerce industry. Many companies in the dot-com wave of the 2000s have failed miserably. The high risk of failure still remains today.
  • Sometimes e-commerce can seem impersonal. That is why it lacks the warmth of an interpersonal relationship, which is important for many brands and products. This lack of a personal touch can be detrimental to many types of services and products, such as interior design or the jewelry business.
  • Safety is another area of ​​concern. Recently, we have seen many security breaches that resulted in the theft of customer information. Credit card theft, identity theft, etc. remain of great concern to customers.
  • Then there are also compliance issues. Even after ordering, shipping, delivery, confusion, etc. issues can arise. This makes customers unhappy and dissatisfied.

e-commerce websites: How to Build an Ecommerce Site

A Step-by-Step Guide

  • Sign up and choose your plan
  • Decide how you want to create your website
  • Connect your domain
  • Set up your e-commerce site
  • Publish your e-commerce site

Strategy for creating an e-commerce website

With the five steps outlined above, your Electronic Commerce website will be up and running in no time. It is easy and anyone can do it.

However, this alone does not make your website successful. Below are some of the best practices to keep in mind when building your website and going through this process.

Keep it simple

Your theme, your home page, your product pages, and your inner pages should be simple.

Don’t try to clutter your home page with all the products you sell. Just check off 3-6 of your favorite products. You can even grab your all-time bestseller and paste a huge photo with a CTA over the fold.

The simplicity and design ensures that your website visitors are instantly exposed to your most popular offers, increasing the chances that they will make a purchase.

Contact page

Like the rest of your electronic commerce website, the contact page should be simple.

You should include your phone number, address, email address, and a contact form for people to reach you. Make sure the contact form is sent to an email account that is actively monitored. This way, you can respond to customer inquiries as quickly as possible.

About us page

The About Us page shouldn’t just be a boring story about when you started your business and what you’re selling.

This is your chance to tell a compelling story that will inspire clients to join your mission. You may be donating 10% of all sales to save the planet. Or it’s a certified B-company that only sources inventory from sustainable suppliers.

Your About Us page should be written as authentically and as clearly as possible. It must attract and resonate with your target audience.

Product names

Rule of thumb: Unless you have a lot of experience naming products, stick to clear names without being too creative.

Too many ecommerce websites get too cute with their product names. This creates confusion and rolling eyes among customers.

A simple, boring name for a great product will continue to generate tons of sales. But the wrong name could destroy it.

Product description

Each product on your ecommerce website should have a unique product description. This is essentially a paragraph or two for your products.

Here is the standard structure that I would recommend for a product description:

  • One or two sentences identifying the problem that the product is solving.
  • A sentence or two paints a picture of what life will be like when the problem is solved.
  • Two or three sentences that describe how your product solves these problems and what features make it possible.
  • Still, not all products solve problems. Clothing and apparel are a perfect example. When you sell a trendy t-shirt, consumers buy it to feel confident, refine their identity, and change their appearance. In this case, the description should relate less to the product itself and more to how the buyer feels about the item.

Product photos

A picture really is worth a thousand words. You cannot rely solely on descriptions when selling your products.

Hire a professional photographer to take pictures of your products. Capture products from every angle. Show it in action. When selling a shirt, instead of just laying it out on a table, take photos of a person wearing that shirt.

If you sell hiking boots, you are showing someone who wears them on a hiking trail. When selling bedding, take a picture of the bedding on a real bed. You can also add videos to the products. This is perfect for products that require a demonstration that cannot only be shown in photos.

READ ALSO: ELECTRONIC RETAILING: How It Works, E-tailing vs E-Commerce

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