Digital Marketing - Study Notes:
What is ecommerce?
Let’s begin by looking at what ecommerce actually is. It refers to activities that relate to the buying and selling of goods and services via online stores or marketplaces. It can also refer to online transactions on websites and mobile apps.
Effective ecommerce
To be effective, ecommerce usually involves:
- Getting a defined audience to a website or mobile app using targeted advertising
- Showing them the ideal product at a suitable price on an optimized site, and then…
- Offering them optimal service levels and securing payment
eCommerce revenue models
Businesses conduct ecommerce in a wide variety of way. Some of the more common ecommerce revenue models are:
- Individual sales by retailers and manufacturers selling physical products
- Sales of non-physical products, such as financial products or etickets for airlines, concerts, sports events, and so on
- Subscription-based products or services for software and entertainment, such as subscriptions for streaming services, and…
- Pay-per-view access to content like market research and business insights
Why businesses use ecommerce
Using ecommerce brings several benefits for businesses:
- Global reach: eCommerce breaks down geographical barriers, allowing businesses to reach customers worldwide.
- 24/7 availability: eCommerce websites are accessible 24/7. This means that customer can make purchases at their convenience, leading to higher sales potential and improved customer satisfaction.
- Cost efficiency: Running an ecommerce store typically requires lower operational costs such as rent, utilities, and staffing. Additionally, automation of various processes such as inventory management and order fulfillment can further reduce overhead costs.
- Personalized marketing: Businesses can use ecommerce platforms to collect valuable data about customer preferences, purchase history, and browsing behavior. This data can be then used to personalize marketing efforts, such as targeted email campaigns and product recommendations.
- Scalability and flexibility: Most ecommerce platforms offer scalability, allowing businesses to easily expand their operations as they grow. Whether it's adding new products, expanding into new markets, or implementing new features, ecommerce systems can adapt to accommodate changes in business needs.
Off-the-shelf ecommerce solutions
Some large businesses, such as airlines, build their own ecommerce solution from scratch. However, for most small and medium-sized businesses, an off-the-shelf ecommerce solution is a better option. Businesses can then usually customize these solutions to meet their own needs.
Examples of off-the-shelf customizable ecommerce software include WooCommerce, Shopify, and Squarespace for smaller businesses. Larger businesses might choose an enterprise-level solution such as Magento.
Benefits of off-the-shelf ecommerce solutions
The main benefits that off-the-shelf solutions bring revolve around cost and simplicity.
- It is usually more cost-effective to use an off-the-shelf solution than to try to build a bespoke solution.
- Off-the-shelf solutions are relatively simple to install and set up. And they allow you to customize them somewhat to better suit your needs.
That being said, the more you customize an off-the-shelf solution, the more costly and complicated the solution will become!
Outsourcing ecommerce solutions
Businesses can also outsource the development and management of an ecommerce experience to a third-party company or agency.
The main advantage of using a third-party supplier is that they may have access to a wide range of skills and technical expertise. A business can set up service level agreements with them, to clarify what services the third party provides and ensure they can meet the business’s needs. And, depending on the arrangement, the third-party may also work to deadlines for the business.
However, a business may have difficulty finding an appropriate partner to meet its needs. For example, service levels can vary between third parties.
The business also needs to consider that it’s losing control of the website. And it can be expensive if a business is locked into costs every time a change is made.
Payment options
Businesses also need to consider customers buying and payment preferences when designing or choosing an ecommerce solution. These will affect the checkout design and functionality, for example. There are several options to consider:
- Multicurrency: Customers can pay in their local currency.
- Multi-card ecommerce: Customers can choose which type of card to pay with.
- Tokenization: Customers can save their payment details for future use.
- Digital wallets: These include PayPal, Google Pay, and Apple Pay.
- Finance options: Customers may wish to pay back in instalments using a service such as Klarna.
Maeve Kneafsey
Maeve Kneafsey is an international practitioner and speaker in marketing, digital transformation, ecommerce, and analytics. Starting with founding Ireland's first content strategy/digital marketing agency, she has over 20 years’ experience launching and building international digital-led businesses, from early concept to funding to growth.

Alison Battisby
Alison is a Social Media Consultant with Avocado Social, she is a Facebook and Instagram accredited social media expert and founded Avocado Social in 2014 having worked in the social media industry since 2008. Alison has worked with a wide range of brands including Estee Lauder, Tesco, and Pringles. Alison has traveled the world training companies including the BBC, Etsy, Canon, and Cambridge University Press. She offers social media strategy, training, and consultancy at Avocado Social across platforms including Facebook, Instagram, YouTube, LinkedIn and TikTok.
