Introduction to e-commerce and online stores | Google Digital Marketing & E-commerce Certificate

Introduction to E-Commerce

In this section, the speaker introduces the concept of e-commerce, discussing how it works, the types of products/services that can be sold online, and the benefits of selling online.

What is E-Commerce?

• E-commerce refers to buying and selling goods or services using the internet.

• It allows listing products/services on a website and receiving payments online.

• Contrasts traditional retail stores with e-commerce stores in terms of shopping experience.

Types of Products in E-Commerce

• Products sold online fall into categories: physical goods, digital goods, services, or software.

• Examples include shoes (physical), e-books (digital), tutoring lessons (service), Adobe Photoshop (software).

Benefits of Selling Online

This section explores why businesses opt for online sales and delves into the advantages and challenges associated with e-commerce.

Customer Behavior Shift

• Customers increasingly research products online before purchasing.

• Customer journey involves multiple channels; internet plays a crucial role in product discovery.

Advantages of Selling Online

• E-commerce offers wider reach compared to brick-and-mortar stores.

• Two types of e-commerce businesses: online-only and click-and-mortar; advantages include cost savings and adaptability.

Challenges in E-Commerce

• Higher return rates due to inability to try products physically.

Benefits of Selling Online

This section discusses the advantages of expanding a business to include online sales, transforming it into a click-and-mortar store. It highlights reasons why businesses with brick-and-mortar stores should consider selling products online.

Reasons for Businesses to Sell Online

• Majority of customers shop online first before buying in-store.

• Customers may prefer buying online due to more options, better prices, or needing time to decide.

• E-commerce allows for selling a wider variety of products than physical stores.

• Customers expect businesses to have an online presence for browsing and purchasing.

• Importance of e-commerce presence for all types of businesses.

Basics of E-commerce Terminology

This part introduces fundamental terms used in e-commerce, focusing on customer navigation through an e-commerce website and essential actions during the shopping process.

Key E-commerce Terms

• Understanding site traffic and landing pages in e-commerce.

• Importance of call-to-action instructions for customers on websites.

• Explanation of digital shopping carts and the checkout process.

• Significance of conversions in turning visitors into paying customers.

Tools and Platforms in E-commerce

This segment delves into the tools and platforms utilized in e-commerce operations, emphasizing the role of e-commerce platforms like Shopify and other business tools such as Salesforce.

Tools and Platforms in E-commerce

• Introduction to e-commerce platforms like Shopify for managing online sales.

• Utilization of business tools such as Salesforce for various business aspects.

Understanding E-commerce and Market Research

In this section, the video discusses the basics of e-commerce, entry-level positions in e-commerce, and the importance of market research in building a successful e-commerce business.

Basics of E-commerce

• The program helps prepare individuals for entry-level positions in e-commerce by providing knowledge and skills related to online campaigns, analytics, email campaigns, social media management, and paid ads.

• Understanding basic terms, tools, and strategies used in e-commerce is essential for success in this field.

Market Research in E-commerce

• Market research involves gathering information about consumers' needs and preferences to determine an e-commerce store's potential for growth and success within a specific industry.

• Types of market research include primary research (conducted by you) and secondary research (done by others), each with its own advantages and limitations.

Types of Information in Market Research

• Three main areas to focus on during market research are market size, target audience, and competition.

• Understanding market size involves assessing demand for products, existing competition levels, and growth opportunities.

Identifying Target Audience

This part delves into the significance of identifying a target audience in e-commerce businesses.

Importance of Target Audience Identification

• Knowing the target audience helps tailor branding, marketing campaigns, pricing strategies effectively based on their needs.

• Specificity is key when defining a target audience; detailed characteristics lead to more focused strategies.

Refining Target Audience Definition

• Example: A retailer targeting men aged 30-45 refines its audience further based on income levels, education status, travel habits to enhance marketing precision.

Understanding Your Customers

This section delves into the importance of understanding your customers thoroughly, covering demographics, interests, and behaviors to tailor business strategies effectively.

Identifying Customer Demographics

• Demographics such as age, location, income level, education level, and occupation are crucial in understanding customers.

Factors Beyond Demographics

• Consider factors like personality, interests, hobbies, values, lifestyle, and behavior to gain a comprehensive view of your target audience.

Product Research Strategies

Exploring product research strategies by applying market research concepts to specific products for effective decision-making.

Importance of Product Demand

• Assessing demand before launching a product is vital to determine its viability and potential success in the market.

Researching Product Demand

• Utilize tools like Google Trends to gauge interest levels in products over time and regions to understand demand dynamics effectively.

Analyzing Product Profitability

Evaluating the profitability of a product post-launch through net profit calculations and margin analysis.

Calculating Net Profit

• Determine net profit by subtracting total expenses from total revenue after considering all associated costs related to the product.

Understanding Net Profit Margin

• Net profit margin is calculated by dividing net profit by total revenue and multiplying by 100; higher margins indicate better profitability.

Understanding Return on Ad Spend (ROAS)

In this section, the concept of Return on Ad Spend (ROAS) is explained through a practical example involving the sale of custom suits and advertising costs.

Calculating ROAS

• The formula for ROAS is the number of products sold times the cost per unit divided by the ad spend.

• An example is provided where 450 custom suits were sold at $800 each from ads, resulting in $360,000 in advertising revenue with an ad cost of $45,000.

• To calculate ROAS, divide the revenue ($360,000) by the cost ($45,000), yielding a return on ad spend of $8.

Product Sourcing Strategies in E-commerce

This part delves into product sourcing strategies for e-commerce businesses and their impact on operations and profitability.

Product Sourcing Options

• Businesses can choose between three main product sourcing methods: designing custom products in-house or with a manufacturer, partnering with vendors or wholesale suppliers for established brands, or utilizing dropshipping services.

• Designing custom products offers control over design and quality but requires significant upfront investment. Partnering with vendors provides access to known brands with lower time and cost commitments.

• Dropshipping allows fast market entry but may have slim profit margins and relies heavily on supplier quality for customer satisfaction.

The Role of Branding in E-commerce

This segment explores branding's significance in e-commerce operations and how it influences customer perception and loyalty.

Branding Elements

• Branding extends beyond logos to encompass customer experience, values alignment, and product quality assurance.

• Website design elements such as layout, color scheme, typography influence brand identity along with consistent messaging across marketing channels.

• Quality products and responsive customer service contribute to brand reputation; prompt resolution of issues can enhance customer trust even after negative experiences.

Detailed Insights on Branding and Customer Perception

This section delves into the significance of a generous return policy in enhancing customers' perception of a brand, emphasizing the importance of storytelling and aligning company values with customer values to establish a strong brand-customer relationship.

Importance of Return Policy and Storytelling

• A generous return policy can enhance customers' trust in a brand.

• Storytelling plays a crucial role in branding by conveying how the company started and its core values.

• Customers are more likely to purchase from brands that share their values, highlighting the importance of aligning company values with customer preferences.

Establishing an Emotional Connection through Branding

This segment focuses on building an emotional connection with customers through branding strategies that resonate with their values and desires, ultimately fostering loyalty and positive associations with the brand.

Building Customer-Centric Brands

• Brands should center around customers by understanding their needs and desires.

• Aligning company actions with customer values strengthens the emotional bond between customers and the brand.

• Donating a portion of revenue to support causes relevant to target audiences can enhance customer satisfaction and loyalty.

Enhancing Customer Experience through Brand Storytelling

The final part emphasizes providing exceptional customer experiences by sharing compelling brand stories, serving customers effectively, and connecting with their values to create lasting relationships.

Creating Memorable Customer Experiences

• Branding involves establishing an emotional connection with customers for optimal experiences.