E-commerce – Growth potential for entrepreneurs.
With advancement of technology and science it is becoming easier for new entrepreneurs to look out for new opportunities.
The world is opening up and businesses which were usually centered on certain local communities are now spreading across the globe. There are millions of new opportunities which are mushrooming for entrepreneurs. E-commerce is one of the domains where we can see immense growth potential for entrepreneurs.
In this article we will discuss some of the cases pertaining to e commerce and hopefully you will discover the unseen potential in it, and do something about it.
First we will talk about famous ecommerce website Alibaba.com. Alibaba is a business to business ecommerce platform where you as a wholesaler can sell products and as a consumer you can buy the products from the website.
The IPO of this website has seen a record subscription size and is going to be the largest IPO across the globe. The financial wealth created by this marketplace is huge and will involve many investors, private equity players, funds to invest in it. Everybody sees alibaba as a great success story which has become a great marketplace to get in expensive goods from low cost destination.
Business model followed by Alibaba
Alibaba targeted users across the globe who wants to procure cheap goods from the low cost destinations such as china. China is considered to be a low cost destination for manufacturing goods. In last two decades China has gained manufacturing competencies in almost all verticals. They have improved on labour cost, production, machineries, infrastructure, taxes etc.
Alibaba targeted the low cost destinations, primarily China, and also involved Taiwan, South Korea, and India. With Alibaba involved in transaction of goods from China to countries such as USA and Europe, it involves un-expected growth in the trade between the West and the East. With bulk deals both seller and buyer has gained considerably and have increased on their revenues. With more and more advancements in the technological space, Alibaba is introducing new updates on it’s website.
Entrepreneurs learning from the ecommerce business model of Alibaba
One has to study the requirements of consumers and put an action plan for customers to grow business from the concept. As in business management we talk of strategy and after that execution of the strategy. Both are equally important and will require extra additional efforts.
With advancement in technology, investors and fund managers are paying great wealth in the new ecommerce business models. As per new modern view point businesses under the purview of ecommerce businesses are growing with leaps and bounds.
If we go a bit technical on the ecommerce business models we can talk about the cloud computing and its use in the best possible manner to get more business out of a software. As an entrepreneur looking for funding of their ecommerce concept, they will get millions of funding as more and more investors including private equity, hedge funds, private placements are investing in the cloud. We have seen many success stories in the field of ecommerce space including alibaba, ebay, amazon etc.
What is your growth plan? You can look beyond the boarders today and use ecommerce to achieve millions of transactions.