How Do E-commerce Businesses make their sales?

E-commerce took the alternative to bricks and mortar stores off the table after the covid-19 pandemic struck and since then a majority of Businesses have flourished. According to statistics, the value of global E-Commerce was predicted to reach $8.44 trillion in 2021 with over 2 billion buyers by 2020. So, what does this mean for your Business?


Not only will you have access to a larger market but also enjoy the other benefits that come along with E-Commerce including reduced operational costs and a golden opportunity to learn the consumer traits of your customers in person. 

So how Do E-Commerce Businesses make their sales? 

The three most common ways that E-Commerce businesses make their sales are:

  1. Leveraging social media marketing

  • Making use of online marketplaces –Online marketplaces in Kenya have been on the rise and can be a great way for you to reach your potential clients. Some of them include Jiji App, Cheki, Naivas online supermarket, Kilimall, and the popular Jumia.

  • Using your online store or website for your business. –Your E-commerce store or your website will be also a good way for those clients who visit the page to be able to get the desired products and services you will be offering.

Advantages Of having an E-Commerce store

One of the top reasons you need an online store is because:

  1. You will have reduced operational costs -The usual advertising cost will now be cut off with the use of social media ads which are cheaper and more effective.

  • You will be able to have a wider range of customers – With an E-Commerce store the clients who were not able to visit your physical store and get their desired goods can now quickly visit your online store and make a purchase.

  • You will realize increased sales due to the convenience of online selling – Online selling is convenient in that, in case of holidays or other days when physical stores are closed, people would resort to online stores which will lead to increased sales.

  • An E-Commerce store will allow for flexibility in operations – An E-commerce store will allow you to sell in the comfort of your home since the only requirement is having access to the internet. This can go a great way in helping you to Multitask with other duties.

  • It will equip you with the right tools you need to obtain data to analyze the consumer behavior of your online customers – Through the API you and other analytics you will be able to determine the consumer behavior of your visitors and clients and use that data to increase your sales.

Disadvantages of E-Commerce stores.

The advantages of owning an online store come with its own advantages which are:

  1. Credibility Concerns from customers – With the evolution of technology, has come to a rise in online crimes such as fraud where some supplier acts as a seller and after receiving money fails to deliver the products, and others phishing and hacking. Some customers may be reluctant to make payments online out of fear of getting reaped off in one way or another.

  • You do not get the chance to interact personally with your customers – Interacting with your clients at a personal level enables you to build trust and loyal repeat business. Unlike the online store, physical stores actually give you a chance to appeal to the clients verbally and non-verbally in an attempt to win them over as clients.

  • Need for Internet Access to be able to make a purchase – in order for that potential client to be able to reach you they have to get access to the internet, an issue that can be a problem in rural areas and remote locations where internet may be unreliable or absent.

  • Credit card Fraud – Credit card fraud was on the rise before the SSL solution came up and now You can purchase this to be able to protect your customers from malicious hackers from accessing credit card information from the data obtained from payments. However, once in a while credit card fraud is prone to take place.

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