As a business owner, deciding between an ecommerce website vs regular website can be tricky. Both will help you establish an online presence, and both can be used by all business types. However, one could be better suited to your brand and its audience.
In this blog we’ll discuss what makes an ecommerce website different to a regular one. We’ll also cover the pros and cons of ecommerce websites for businesses, so you can make a value judgement. Let’s get started!
What is an ecommerce website?
An ecommerce website functions like a physical store, except monetary transactions occur online. Visitors are able to browse products on the site and add them to their cart. Where businesses have a physical store location as well as an ecommerce site, the range of products available may differ. In this case, items can either be delivered to an address or picked up in-store. In contrast, regular business or informational websites have the primary function of promoting a brand.
There are some other characteristics define an ecommerce website when compared to a regular website. Ecommerce website design leans heavily towards lead generation and conversion to maximise sales. This also means many successful ecommerce websites are fully optimised for mobile use.
Another significant aspect of ecommerce websites is they deal with more customer data than regular websites. The result is that security is a higher priority for ecommerce websites. Payments go through a secure server, ensuring customers are protected.
Types of ecommerce business model
The layout of an ecommerce website is influenced by the operations of the business behind it. For example, ecommerce businesses can sell both physical and digital products and services. You should also ask yourself, how are you competing? Are your products market-leading or do you offer more selection and/or convenience than other businesses? It’s also important to consider who you’re selling to, which is where ecommerce business models come in.
Business-to-consumer (B2C)
Where a business uses their site to sell directly to end-users. This includes anything that can be purchased through the online store. Due to the short sales cycle of B2C transactions, ecommerce websites that follow this model typically invest less in marketing. This is also because low value B2B products typically have a short decision-making process.
Business-to-business (B2B)
This model sees a business sell products and services to other businesses. More and more businesses each year are operating predominantly online. This, combined with the fact global businesses tend to utilise digital resources more, means B2B models are becoming increasingly popular.
Oftentimes, business-to-business purchases will have longer sales cycles. B2B transactions also usually have a higher average order value and feature more frequent regular orders.
Business-to-government (B2G)
A model where the business sells to government entities, either at a local or national level. As with any other audience, certain products and services will appeal more to some of these bodies than others. Resultantly, the ecommerce website should be designed with this in mind.
Business-to-business-to-consumer (B2B2C)
This business model has two companies or organisations work together to sell one of their products to end-customers. Unlike white labelled products, B2B2C ensures consumers are aware they’re buying a product or service supplied by the original company.
Sometimes B2B sales will lead directly into B2C sales, however, this can take a long time to reach the end user. The B2B2C model streamlines this process by using an ecommerce website and removing the need for an intermediary.
Pros of ecommerce websites for businesses
Wide range of lead generation opportunities
The sales function of ecommerce website opens the door for businesses to use a range of lead generation tactics. Popular strategies include retargeting ads, pay-per-click advertising, discounts or free shipping, gated content, popups, and contest or giveaway hosting. A combination of these is best to spread the word of your products and prices. Ecommerce websites benefit greatly from this, as consumers are already familiar with the business before they visit.
Greater audience reach
Physical store locations can pose a challenge for customers with accessibility requirements. As such, even if consumers can get a sense of your products and services through a regular website, they could be prevented from making a purchase. Ecommerce websites offer a solution for these consumers as they’re able to view products, make purchases, and have them delivered, all through the site.
The mobile optimisation of ecommerce websites gives businesses access to an even greater audience still. Research shows that mobile ecommerce sales were over $360 billion in 2021, with the figure predicted to almost double to $710.42 billion in 2025. On top of this, ecommerce websites still serve as a way for users to discover your business online.
Tracking logistics
Keeping track of everything is important in any retail-oriented business. Ecommerce websites make this easy, as they can be set up to keep digital records. This lets your business track and collect sales data, as well as look for consumer trends. Logistics also give you the ability to pass on certain benefits to customers as a result of outsourced processes. This can include simple returns or next day shipping for example.
Scalability
An ecommerce website functions like a physical store, except there isn’t a high cost associated with expanding its operations. There isn’t a need to move equipment and inventory or make extensions to existing retail spaces. As your business grows, so too does your ecommerce website.
Cons of ecommerce websites for businesses
Organising delivery
One of the main appeals of ecommerce websites for consumers is that they can buy and receive goods from the comfort of their home. However, this creates shipping and delivery responsibilities for the business. Figuring out shipping logistics has the potential to be a costly and time-consuming process, especially when orders come from all over the world.
Potential security threats
Any website can pose a security risk to businesses. It’s heightened in the case of ecommerce websites due to the volume of sensitive information they deal with daily. Data breaches can compromise customer email accounts or lead to the leaking of card details. Of course, these eventualities are damaging to individuals, but for your business this can cause a loss of consumer confidence. Many measures to ensure ecommerce website security take place during the building phase.
Limited customer connection opportunities
Ecommerce websites can come across as less personal and interactive than regular websites. The reason for this is simply because they’re focused on their products. As such, if the site even has a blog or news section, it won’t be front and centre. This can make it difficult for consumers to get an impression of your brand values and personality. Businesses that rely on ecommerce websites can therefore benefit from using creative lead generation techniques like social media.
Professional ecommerce website design agency
If you’re looking for an expert digital marketing agency to help you launch your ecommerce business, you’re in luck! Deliver Media offers comprehensive ecommerce website design services that have been shown to increase sales. Let us help make your ecommerce website the number one breadwinner in your business.
Contact us for a free audit today.