This paragraph will introduce e-commerce, tell you the meaning of e-commerce, the definition of e-commerce platforms and the trend of online shopping in the post-epidemic era, leading you who want to start an e-commerce business in Hong Kong to have a more preliminary understanding of e-commerce operations!
(1) What is e-commerce? EC e-commerce trends you should know in the post-epidemic era
The first thing we need to understand is: what is e-commerce? How do we define e-commerce?
E-commerce is the abbreviation of “E-commerce
Eletronic Commerce, EC). It mainly transfers the flow of cash, logistics and information from the transaction position of traditional physical commerce to electronic and data transfer to the Internet for transactions. They are all within the scope of e-commerce.
In 2020, the COVID-19 epidemic, which has lasted for nearly three years, has greatly changed the consumption habits of the Chinese people, prompting the vigorous development of online shopping. According to the latest data released by the Department of E-Commerce and Information Technology of the Ministry of Commerce , the total number of national e-commerce transactions reached 43.83 trillion yuan (approximately HK$48.12 trillion) in 2022, and by the end of the year, the number of online users reached 845 million.
So, how is the performance of e-commerce in Hong Kong?
According to the Census and Statistics Department of the Hong Kong Government , in 2023 (as of November), Hong Kong’s retail industry’s online sales were HK$3.2 billion. Although it has declined slightly compared with the peak of the epidemic in 2022, it still maintains amazing sales, as shown below During the epidemic era, Hong Kong people have become quite accustomed to the consumption habits of the “stay-at-home economy”, and the trend of EC e-commerce has become unstoppable.
(2) What is an e-commerce platform?
So, what is the e-commerce platform we often hear about? Where is the specific transaction location of e-commerce?
In addition to setting up your own website or operating social accounts, the most common online place where brands, merchants and consumers conduct transactions is what we call “e-commerce platforms”. We can define an e-commerce platform as an intermediary station for buying and selling, supporting people’s financial transactions, logistics transportation, information exchange and other services.
What are the advantages and disadvantages of e-commerce?
Use SWOT analysis to show you the cost of starting an e-commerce business
If we want to operate e-commerce in Hong Kong, we should first analyze the advantages and disadvantages of e-commerce as a starting point. The following will introduce the 5 major e-commerce advantages and 6 major e-commerce disadvantages:
(1) Five major advantages of e-commerce, low cost and many benefits
5 major advantages of e-commerce
In the realm of digital marketing, the efficacy of communication strategies significantly relies on targeted outreach. One of the most effective tools for achieving email list this aim is the use of country email lists. These lists consist of email addresses segmented by geographical regions, enabling businesses to tailor their marketing efforts according to local preferences, cultural nuances, and consumer behaviors.
Breaking through physical limitations
E-commerce no longer requires traditional physical space to conduct transactions. Therefore, time, space, and geographical restrictions can be said to be completely relaxed. There are no restrictions on business hours, no need to kuwait phone number data resource rent store space, and consumers do not need to go to the store specifically. To consume.
Low operating costs : E-commerce greatly saves the cost of operating physical stores, including store staff, rent, water and electricity bills, store maintenance costs, etc. It only requires storage space sufficient to accommodate the goods.
Optimize sales performance with data
For transactions conducted through the Internet, the network system will completely record all user data. Brands and merchants can use data to analyze consumer habits and adjust sales models to improve sales performance.
Provide personalized services : While analyzing consumer usage habits, more detailed personalized service adjustments aero leads can be made. For example, the pickup method, delivery time and location, cash flow transaction method (installment or lump sum payment), etc.
Convenient expansion of new customers : Breaking through geographical restrictions also means that cross-border e-commerce and multinational brands can be developed globally through the borderless nature of the Internet. As long as you properly manage SEO and place ads, there will be no domain boundaries to reach new consumers.
(2) 6 major shortcomings of e-commerce, pay attention
To common e-commerce problems
6 major disadvantages of e-commerce
It is difficult to grow website traffic : e-commerce traffic is equal to the flow of people, and the flow of people determines the cash flow. If you cannot sustain more exposure, it will be difficult to attract more new consumers. This is also the most common e-commerce problem that most entrepreneurs encounter when they first start out.
E-commerce platforms incur additional costs : It is not easy to promote a self-built website. Most brands and merchants rely on e-commerce platforms with huge traffic to sell goods. However, some platforms will draw commissions or charge handling fees, causing additional operating costs for brands and merchants.
Price-cutting competition is common
When many brands sell the same type of goods, in order to gain a greater advantage on the e-commerce platform and compete with other brands, it often develops into price-cutting competition. For example, today’s book market has become more popular because of e-commerce. The platform’s discount war has had a negative impact. When e-commerce platforms launch channel discounts to attract traffic, merchants have to cooperate.
Software and hardware equipment problems : All e-commerce transactions depend on the Internet. If there are problems with software or hardware equipment during transactions, sales may be affected. For example, there is no early warning about web page failure, slow network speed, insufficient network stability, or even the design of web page operations is not intuitive enough, which will all become factors that affect consumers’ decision to purchase.
Lack of physical experience
Although it is convenient to move all transactions online, it still has certain limitations. Take ready-to-wear brands as an example. The inability to actually try on clothes and experience the materials may make it difficult for consumers to place orders or cause after-sales problems. In order to cope with this shortcoming, some merchants will set up experience stores, and also have mechanisms such as returns and exchanges, and a seven-day appreciation period for online purchases.
It is difficult to establish brand loyalty : E-commerce services are relatively unable to provide physical consumer services. They only communicate through text messages, making it difficult to establish relationships with consumers and increase brand loyalty.
(3) Is the cost of starting an e-commerce business high? SWOT analysis tells you
Through the above, we have introduced the advantages and disadvantages of e-commerce. Then you may want to know more about whether the costs of operating an e-commerce and the benefits of e-commerce are enough to balance? Next, we will compare e-commerce transactions with traditional channel transactions and use SWOT analysis charts to organize them, allowing you to easily evaluate whether you should invest in the cost of e-commerce entrepreneurship. The following is the SWOT of e-commerce transactions.
