Table of Contents
1.) What is Ecommerce
2.) Sizes of Ecommerce Businesses
3.) Startup
4.) Small business
5.) Mid-market
6.) Enterprise
7.) Final Verdict
What is Ecommerce?
What is Ecommerce?
E-commerce (or electronic commerce) is the buying and selling of goods or services on the Internet. It encompasses a wide variety of data, systems, and tools for online buyers and sellers, including mobile shopping and online payment encryption.
Most businesses with an online presence use an online store and/or platform to conduct eCommerce marketing and sales activities and to oversee logistics and fulfillment.
According to eMarketer, in 2022, global retail e-commerce sales will surpass $5 trillion for the first time, accounting for more than a fifth of overall retail sales.
This staggering amount is a clear indication that ecommerce is only going to become more popular in the years to come, so it’s important for businesses to have a solid understanding of how it works in order to take advantage of this growing trend.
Sizes of Ecommerce Businesses
From small startups to large enterprises, eCommerce businesses can come in all sizes. Let’s look at the main four you’re likely to come across.
Startup.
A startup is a business or project in the first stages of development, often built by an entrepreneur to pursue an innovative business model.
Typically a startup has less than 100 employees, however, a startup is often defined not by size but by profitability. According to Alex Wilhelm, writer for TechCrunch, a company is no longer considered a startup after it reaches a $50 million revenue run rate or is worth more than $500 million, on paper or otherwise.
Small business.
Small businesses are sole proprietorships, partnerships or corporations that sell products or services and make less money,y and have fewer employees than large multinational corporations. The U.S. Small Business Administration further defines a small business in terms of employment (from 100 to over 1,500 employees) or average annual receipts over time (ranging from $1 million to over $40 million).
Mid-market.
According to Sangoma, small and medium-sized enterprises (SMEs), also known as “mid-market,” businesses, typically have between 101-500 employees and generate between $10 million and $1 billion in annual revenue.
Enterprise.
Large enterprise businesses can have over 1000 employees and usually generate over $1 billion in annual revenue.
Since the beginning of 2020, 45% of eCommerce software buying activity has come from enterprise-level companies.
Final Verdict
Ecommerce is the process of buying and selling goods and services online. It has become increasingly popular in recent years, as more and more people have access to the internet and are comfortable making purchases online.
There are many advantages to ecommerce, including the ability to reach a global audience, the convenience of 24/7 shopping, and the ability to track and manage inventory electronically. Additionally, ecommerce can help businesses save money on overhead costs, such as rent and staff.
However, there are also some disadvantages to ecommerce, such as the risk of fraud and the need for a strong digital marketing strategy.
