In the era of digitalization, many people like you are curious and asking – how does an eCommerce platform work?
After all, the eCommerce industry in Singapore and the Asean region now commands extreme valuation in the sales industry.
Amazon, Alibaba, eBay, Lazada, Shoppee, and many other eCommerce sites are already making an impact and setting a trend in the digital marketplace.
If you have ever shopped on any of those websites, then it’s great because that’s what eCommerce is!
To give you a deeper understanding of what an eCommerce platform does, let me explain it a bit further.
What Does An eCommerce Platform Do?
The world is connected altogether because of one thing, which is the internet. Your new eCommerce platform Singapore takes your local offline store to an online international store. Isn’t that great?
To be more precise, here’s what does an eCommerce platform do:
- Takes your local business from offline to online
- Opens up new opportunities for your business
- Allows you to automate work effectively
- Customers can get 24 X 7 availability
- Low startup cost
- Makes your brand image excellent
- Multiple ways to accept payments
How Does An eCommerce Platform Work To Make Money?
Most people think that eCommerce platforms only make money for selling products of multiple vendors.
You know what? That’s not even half of it. Here’s what else an eCommerce company does to make money.
An eCommerce Company Makes Money from from Fixed Subscriptions
To put products on eCommerce websites like eBay and Amazon, many sellers pay a fixed sum.
Sometimes, an eCommerce company may also charge a closing fee, which could be of less than $5.
An eCommerce Platform Can Make Money from Commissions
Although it’s pretty much like a fixed commission model, it’s a little bit different. In this case, the commission may vary from product to product.
Nowadays, eCommerce platforms may charge anywhere between 5% to 20%.
How Can We Forget Logistics and Shipping?
Thousands of orders are booked on a daily basis and I can confidently say that eCommerce companies earn a great cut on every sale.
So how can we forget about logistics and shipping?
Believe it or not, logistics and shipping are the cherries on top because both generate extra revenue for eCommerce companies.
Almost Every eCommerce Company Utilizes the Power of Affiliate Marketing
Many online marketers have leveraged this opportunity to make a great income in the last decade.
A lot of bloggers, influencers, YouTubers time and again review products and place a link to the product page of these eCommerce sites.
And guess what? Those bloggers, YouTubers, and influencers bank cash in millions.
Now think! How much these eCommerce websites would be earning?
PPC Advertisement is A Great Resource for eCommerce Websites
Have you ever noticed those ads on Amazon? If not, next time you visit Amazon, make sure to see them.
Do you know someone paid for those ads?
Yes, they’re earning money by selling nothing. Just for a little space, they’re earning money.
Now the question is – who is spending money on those ads?
Well, those are obviously sellers. Those sellers are in the launching phase and they’re collecting some hype with those PPC advertisements.
How Profitable An eCommerce Platform Would Be in 2021?
Considering the COVID-19 pandemic, it appears that the eCommerce industry in Singapore and the region of SEA will boom in 2021, and it’s about time you took the time to learn more about the benefits of eCom for your local business.
As you know, people are suspicious about the virus, and they just won’t like to visit a shopping mall.
In my opinion, it’s a high time to create an online store, your bottom line will thank you.