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E-Commerce
What is E-Commerce?
E-commerce is a method of buying and selling goods and services online. The definition of ecommerce business can also include tactics like affiliate marketing. You can use ecommerce channels such as your own website, an established selling website like Amazon, or social media to drive online sales.
How does ecommerce work?
After a customer makes a purchase, the online retailer delivers the order via shipping, store pickup, or local delivery (in the case of physical products), or digitally (for digital products like PDFs, virtual courses, or online consultations).
Ecommerce transactions happen across a variety of devices and platforms, using a number of different payment methods. Other applications and businesses support this ecosystem, from ad platforms like Google Ads to third-party logistics companies to ecommerce store apps.
Types of ecommerce businesses
There are many ecommerce types, defined by who you are and who you’re selling to. Some helpful ecommerce terms to know are as follows.
1. Business to consumer (B2C)
A business that sells goods or services to an individual consumer (e.g., An ecommerce footwear store sells individual pairs of shoes directly to its customers).
2. Business to business (B2B)
A B2B business that sells goods or services to another business (e.g., A software company sells licenses for its technology to a small business).
3. Consumer to consumer (C2C)
An individual who sells goods or services to another individual (e.g., A person sells a single used sofa to another person on a buy-and-sell marketplace). Note: Once a person begins selling multiple items in this way (a vintage reseller using channels like Depop), their business model could be considered B2C.
4. Consumer to business (C2B)
An individual sells their own products or services to a business or organization (e.g., A business pays an independent influencer to promote the brand on social media).
You may also encounter a few other terms to describe types of ecommerce businesses. Direct-to-consumer (DTC or D2C) brands are those that primarily sell directly to their customers, either online or in person, without a middleman (a retailer or distributor). A digitally native vertical brand (DNVB) refers to a DTC business that started entirely online. Popular examples of these ecommerce business models include mattress brand Casper and men’s grooming brand Harry’s.
Five ecommerce revenue models
In addition to deciding what type of ecommerce business you want to run, it’s important to decide how that business will make money. There are at least five different revenue models used by businesses selling online. They are:
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Sales model. This is the most common model used by online brands and physical stores alike. It involves selling products and services for profit.
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Subscription model. Growing in popularity among consumers and ecommerce DTC brands, this model relies on recurring revenue from subscriptions to products or services.
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Advertising model. This model is common among online creators and influencers who grow personal brands thanks to advertising deals (promoted content) with other businesses.
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Affiliate model. Affiliate programs are also popular among creators who have large followings and may or may not sell their own products. They earn commission when a customer buys a product using an affiliate link.
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Transaction fee model. This model applies to ecommerce companies that process financial transactions. They earn revenue by charging a fee on each sale.
What is Pre-Sales
Pre-sales refers to the activities and processes that precede the actual sale of a product or service. The primary goal of pre-sales is to understand and address the potential customer's needs, ensuring that they are the right fit for your product or service. It's about laying the groundwork for a successful sale by qualifying leads and building trust.
Who Uses the Pre-sales Process?
The pre-sales process isn't confined to just one department or role within an organization. It's a collaborative effort that involves multiple stakeholders, each contributing their unique skills and perspectives. Let's delve into who these key players are!
Sales Teams
The sales team is often the first to engage in pre-sales activities. They are responsible for initial lead qualification, understanding customer needs, and setting the stage for deeper engagement. They're the frontline warriors in the pre-sales battle!
Pre-Sales Consultants/Specialists
These are the subject matter experts who dive deep into the technical and functional aspects of the product or service. They assist in crafting tailored solutions and are instrumental in presenting these solutions to the clients.
Product Managers
Product managers play a vital role in identifying product gaps through customer feedback gathered during the pre-sales process. They work closely with pre-sales teams to ensure that the product aligns with customer needs and market demands.
Data Analysts
Data analysts help in interpreting customer behavior, market trends, and other data points that can be crucial for the pre-sales process. Their insights enable the team to make data-driven decisions.
Customer Success Teams
While traditionally involved post-sale, customer success teams are increasingly engaged in pre-sales to ensure that the proposed solutions are sustainable and beneficial in the long term. They bring the perspective of customer retention into the pre-sales process.
Technical Support Teams
These teams provide the technical know-how and support required during product demos, proof of concepts, and solution mapping. Their expertise is crucial in showcasing how the product or service solves the customer's problem.
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P2P Services
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Core Characteristics of P2P Networks
Decentralization:
Unlike client-server models, where a central server handles requests and data, P2P networks distribute tasks and
resources among all peers. This reduces single points of failure and increases system resilience.
Equality of Nodes:
In a P2P network, all nodes have equal status and responsibilities. Each node can act as both a consumer and a provider of resources.
Direct Interactions:
Peers communicate directly with each other to share data or services. This eliminates intermediaries and often improves efficiency.
Scalability:
Adding more peers increases the network's capacity since every new peer contributes resources. This contrasts with centralized systems, where scalability is limited by the capacity of the central server.​​​
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Types of P2P Networks
Structured P2P:
Nodes follow a predefined structure or protocol for communication. Examples: Distributed Hash Tables (DHTs) like those used in BitTorrent.
Unstructured P2P:
Nodes connect randomly without a specific topology. Searches may be less efficient, but these networks are more flexible and resilient.
Examples: Gnutella and Kazaa.
Hybrid P2P:
Combines elements of P2P and client-server models. Some nodes may have additional responsibilities (e.g., indexing or managing the network).
Example: Napster, which used centralized servers for indexing but relied on P2P for file transfers.
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Key Technologies and Concepts in P2P
Distributed Hash Tables (DHTs):
A method for organizing and searching data in structured P2P networks. Allows efficient location of resources using key-value pairs.
Peer Discovery:
Mechanisms that allow peers to find each other in the network, often through protocols like DNS or bootstrap nodes.
Resource Sharing:
Peers share resources such as files, bandwidth, or processing power. Examples: File-sharing networks, distributed computing projects like SETI@home.
Protocols:
Common P2P protocols include BitTorrent, Gnutella, and the InterPlanetary File System (IPFS). Applications of P2P Networks
File Sharing:
Early and popular use case. Examples: Napster (music sharing), BitTorrent (general file sharing).
Distributed Computing:
Utilizing the computational power of multiple peers for intensive tasks. Examples: Folding@home, BOINC.
Blockchain and Cryptocurrencies:
P2P networks form the backbone of blockchain systems. Examples: Bitcoin, Ethereum.
Decentralized Applications (DApps):
Applications built on P2P or blockchain frameworks. Examples: Filecoin, decentralized finance (DeFi) apps.
Voice and Video Communication:
P2P reduces latency and improves privacy by enabling direct connections. Examples: Skype (earlier versions), WebRTC.
