Ecommerce Strategies

572 words | 2 page(s)

The modern-day assimilation of the internet in business function has made it easier for organizations to conduct business and reach larger market pools. For this to be achieved, it is necessary that a company has a functioning and well-structured website. A website acts as a platform for which consumers can remotely interact with the company’s function. Since there is so many sites coming up, companies have to device strategies with which they can use to make theirs more appealing to consumers (Haag & Cummings, 2013). Companies such as Amazon and eBay have been able to adequately do so and have emerged among the top ecommerce sites in America.

According to Bhasin (2017), these companies use demographic and psychographic segmentation to make segments of the markets. For Amazon especially, their segmentation is mostly based on the behavior pattern that is recorded from actual purchases made and not just what people expressed interest on. It further enacts micro-level segmentation whereby, it targets each individual customer, a strategy which allows it to convert them into long-term customers. The company mainly targets the middle-to-high class customers who are perceived to prefer online shopping to shopping from physical outlets. The companies also produce high quality content that is original and that tends to resonate with more consumers. They have optimized web layouts which are easy and simple to use. They also incorporate content marketing in form of videos, blog posts and newsletters as well as social media and email. They have optimized the functions of their search engines, which help users easily find what they are looking for by typing in key words.

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Business-business(B2B) companies differ from Business-consumer (B2C) companies in a number of ways. They are different in communications, transactions deployed and the scope, scale, complexity and cost of its sales administration (Linton, 2012). In regard to ecommerce, the two are different in that B2C requires a much simpler system, the strategies would only involve displaying the products and their prices on the website, a mechanism that records the details of customers and a checkout system to accept payment. B2B is more complex. The system should allow for orders in many different formats like documents, emails and electronic orders. It should also integrate its order capture systems with its administrative function such as accounting and invoicing. B2B also tends to rely on referral marketing meaning the firm would have to build a widespread reputation of specializing in the area (Frederiksen, 2018).

The two are also different in the nature of IT components and systems. As noted by Haag and Cummings (2013), in B2C, prices tend to remain constant and payments are made at point of sales. On the other hand, in B2B, prices vary in regard to the quantity ordered. Payments are also made through an agreed channel of logistics. To accommodate for this function, more complex systems are required. This includes a higher performance websites and CRM software.

  • Bhasin, H. (2017, December 15). Marketing strategy of Amazon – Amazon marketing strategy. Retrieved from https://www.marketing91.com/marketing-strategy-of-amazon/
  • Frederiksen, L. (2018, July 16). 10 essential B2B marketing strategies to grow your professional services firm | hinge marketing. Retrieved from https://hingemarketing.com/blog/story/10-essential-b2b-marketing-strategies-to-grow-your-professional-services-fi
  • Haag, S., & Cummings, M. (2013). Management information systems for the information age (9th ed.). New York, NY: McGraw-Hill Irwin.
  • Linton, I. (2012, March 16). Differences between B2C & B2B in business systems. Retrieved from https://smallbusiness.chron.com/differences-between-b2c-b2b-business-systems-39922.html

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