E-commerce (electronic commerce) is the buying and selling goods and services or transmitting funds or data over an electronic network, primarily the internet. Advancements in technology and the growth of available marketplaces have made it easier to buy and sell online. As businesses came online during the COVID-19 pandemic, the global trend toward digitization surged ahead at lightning speed. Even as markets begin to reopen, e-commerce sales are still climbing at a rapid pace. Widespread use of e-commerce platforms such as Amazon, Shopee, Lazada and eBay has contributed to substantial growth in online retail.
Why E-commerce is the future of the market?
Availability: Physical shops tend to open for a fixed number of hours and may close entirely on certain days, while e-commerce sites are always available, allowing consumers to browse and shop at any time and place in the world. E-commerce also enables brands to make a wide array of products available online. Consumers will most likely have more success finding what they want on e-commerce sites than in physical stores.
Easy Accessibility: Shopping at a physical store may have difficulty determining which aisle a particular product is. In e-commerce, consumers can browse product category pages and use the site search function to find the product instantly. These can reduce time wastage on finding the products and eliminate the waiting time caused by the crowds. Furthermore, consumers can complete the checkout process and order their items successfully within a few minutes, giving them a smoother journey experience.
Increased Brand Reach: Physical businesses can only sell to consumers who visit their stores locally. With e-commerce, companies can sell to any customers over the globe who have access to the web. It has the potential to help business owners to extend their customer base tremendously.
Personalization and Product Recommendations: E-commerce sites can track consumers’ browse, search and purchasing history. They can use this data to present valuable and personalized product recommendations for consumers and obtain valuable insights about target markets.
Lower Financial Costs: It eliminates the need for a traditional physical store reducing the expenses such as rent, inventory and cashiers, etc.
Some limitations on e-commerce might be that payment service providers will secure customers’ payment information, leading to the risk of leaking and exploiting customers’ data. Other issues might be consumers would expect more personalized services from sellers due to the inability to touch the product. Therefore, investing in a digital platform that provides transparent services where customers feel empowered to conveniently find solutions to their problems is essential.
How can Xero streamline the accounting process for E-commerce companies?
Vendors such as Shopify and BigCommerce are offering e-commerce platform services for consumers hosting their online store sites. Both are third-party e-commerce apps that can be connected to Xero directly.
BigCommerce is a popular all-in-one e-commerce software platform that helps businesses of all sizes power and runs their online store. It can automatically sync sales data (e.g. sales order, product details, customer information) with Xero anytime and anywhere.
Shopify allows users to create stores and sell goods easily. Sales accrued in Shopify and pay-outs are automatically synced with Xero. It can easily create invoices with just a single click. Exporting of orders as invoices are made simpler with Shopify. It can also import all your orders from Shopify into Xero immediately reducing the risk of human error and increasing productivity.
With Xero’s API (Application Programming Interface), it can connect directly with over 1,000 third party apps and integrations ranging from e-commerce, CRM, inventory, and project management apps. This means that financial data can now flow seamlessly between your apps and Xero accounting software, keeping all the business information up to date. Its wide range of add-ons and apps aims to help companies reduce administrative tasks and save time and resources.
Your BigCommerce and your accounts, now in sync:
https://www.xero.com/sg/partnerships/bigcommerce/
Make Shopify accounting easier with Xero:
Business owners should take advantage of digital marketing by moving away from traditional processes and offering a seamless buying experience through e-commerce. There are also plenty of payment systems that can integrate into the e-commerce business and Xero. You get to choose the most suitable payment methods in line with your business objectives. These methods can assure that you can carry out transactions quickly, properly and safely as well as satisfy customers. You will then have more time to focus on your business!
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