What Is E-Commerce? A Guide for Beginners

What Is E-Commerce? A Guide for Beginners

In Egypt, business is shifting in exciting ways. Thanks to the growth of mobile payments, social media, and the ease of online shopping, more Egyptians are happily browsing and purchasing products from their phones instead of going to physical stores.

As an aspiring entrepreneur or a business owner with a physical location, you’ve probably noticed this shift and wonder how you can tap into this growing demand. After all, e-commerce is a space where anyone can meet customers and present products wherever they are: online.

In this guide, we’ll show you what ecommerce is and its basic principles so you can kickstart your journey with success within reach.


What Is E-Commerce and How Does it Work?

Short for “electronic commerce,” e-commerce refers to the trading of products and services via the Internet. It enables businesses and individuals to buy and sell goods electronically, usually through online stores in Egypt or any other location with web access.

E-commerce not only provides a digital storefront for expanding your business but also an excellent way to launch your store. Some businesses offer their products exclusively through online shopping apps like Amazon before expanding into omnichannel retail.

Here’s how it works:

1. After choosing an online selling channel to promote your products and/or services, you must optimize your product listings so they appear in front of the right people.

2. Customers find your products and place their orders online.

3. Customers pay for the goods using credit or debit cards, digital money transfers, or cash on delivery, depending on each store’s offerings.

4. After confirming payment, the customer receives a digital receipt via email or in-app message or notification. Meanwhile, you prepare the products for shipment or wait for the Amazon Fulfillment Center in Egypt (for FBA sellers) to fulfill the order.

5. The product is shipped to the customer within a given timeframe. Online shopping channels like Amazon provide estimated delivery dates for products ordered via the app or website, as well as a tracking number so customers have real-time access to shipping updates.

Sounds simple enough, right? During this entire process, you can use various e-commerce tools to ensure that the transaction goes as smoothly as possible.


Types of E-Commerce Business Models

Contrary to popular belief, e-commerce is not just about selling products to a customer. Here, we break down the different business models known today:

B2C

The B2C model entails companies selling directly to consumers or end-users. Most e-commerce businesses fall under this business model, which may be why many people mistakenly think all electronic commerce businesses are B2C.

B2B

E-commerce companies that sell products to other businesses fall under the business-to-business (B2B) model. Usually, the buyers are entities that resell products to end-users.

C2B

In the C2B model, instead of businesses selling to consumers, the latter provides value to businesses, often through services or content that the business can use. For example, a photographer may sell images to a marketing agency, or a freelance designer may offer services to a company needing branding work.

In essence, C2B flips the traditional sales model, allowing consumers to contribute actively to a business’s needs.

C2C

The consumer-to-consumer or C2C model allows customers to sell directly to other customers. Often facilitated by third-party platforms, C2C e-commerce connects people who want to buy or sell products or services.

B2G or B2A

In the B2G model (sometimes called B2A or business-to-administration), businesses sell products or services directly to government entities or agencies. This includes IT solutions, infrastructure projects, office supplies, and consulting services.

Companies bidding on government contracts often fall into this category. This is a more niche market, generally involving public sector procurement processes and large-scale contracts.

C2G or C2A

C2G e-commerce refers to ventures where consumers provide products or services to the government. It can involve individuals paying taxes, fines, or fees to the government online or contributing information or feedback to government surveys or platforms.

G2B

In the G2B model, the government provides services to businesses. This might include offering public sector resources like grants, regulations, or even public sector data that businesses can use to grow or comply with laws.

For instance, governments may provide access to business registration portals or tools to help businesses comply with tax laws.

G2C

In the G2C model, the government provides services or information directly to consumers. It's most commonly seen in areas like public services, like applying for permits, paying taxes, or accessing social welfare benefits, via websites and online apps or software.

G2C e-commerce simplifies the process of interacting with the government, often providing citizens with easier access to services.

Remember that e-commerce business models can take various forms. You can make a profit by selling products directly, offering subscriptions, or performing affiliate marketing.

Starting an E-Commerce Business on Amazon Egypt: 4 Easy Steps

E-commerce companies are incredibly diverse, varying widely in their business models, specific niches, and product or service offerings. If you’re simply offering your services as a professional, there’s no need to maintain an inventory or think about fulfillment. But if you’re planning to sell products online, these two are likely to be crucial for your operations.

To help you get started in your e-commerce journey on Amazon Egypt, here are 4 essential steps you must take when launching your e-commerce store:

Step 1: Start with an idea

If you don’t have a product or concept yet, start researching potential ideas for your e-commerce business. Make sure you validate your research so you only choose winning products to sell on Amazon.

Step 2: Find a supplier

Maintaining a healthy inventory is crucial to your success in online selling. To that end, you must find a reliable supplier to support your business. Our Amazon FBA wholesale suppliers guide will help you through this process.

Step 3: Determine your fulfillment strategy

Amazon sellers have two fulfillment options:

Pack and ship orders yourself: This gives you complete control over the fulfillment process, from packing to shipment.
Sign up for Fulfillment by Amazon (FBA): You can leave the fulfillment to us. You only need to send your inventory to our dedicated warehouse in Egypt, and we’ll handle the rest. Check out our guide on how to use Amazon FBA.

Step 4: Promote your store

Once your store is live, you’ll need to drive traffic to it. Here are a few things you can try:

SEO (Search Engine Optimization): Optimize your website or Amazon product listings to rank higher on search engines.

Social Media Marketing: Promote your store on social media channels.

Email Marketing: Build an email list and send promotions, updates, and personalized offers.

Paid Ads: Use Amazon advertising to increase your reach. Log in to Seller Central to sign up and gain access to Sponsored Brands, Sponsored Products, and Stores.

Visit our online selling blog to learn more.

Ready to Take the Leap?

Starting an e-commerce business in Egypt can open up exciting opportunities to reach customers beyond your local area and tap into a growing market. Take the time to plan, and you’ll be on your way to thriving in the online marketplace.

For deeper insights and proven strategies, sign up for Amazon Seller University and take your e-commerce journey to the next level.