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The Concept of Pure-click Companies
E-commerce, or electronic commerce, today is taking over the stage. E-commerce basically refers to the online or digital market space where the sellers can list and sell their products and the buyers can negotiate, compare the products from different brands, and make their final choice. E-commerce is the digital marketplace for companies. E-commerce is the digitalization of the physical distribution channel of the 4 Ps of marketing. E-commerce has a lot to offer both customers and sellers. When we are talking about businesses in E-commerce, we can see that there could be two types of businesses.
Pure-click e-commerce companies.
Brick-and-click e-commerce companies.
Hence, in this article, we will be diving deep into the concept of pure-click e-commerce companies, how these companies, function, the benefits of purchasing through e-commerce, and some renowned examples from the business world of pure-click e-commerce companies.
The concept of pure-click e-commerce companies
Pure-click e-commerce companies are those that are only present in the online world or on e-commerce platforms. You will not find brick-and-mortar outlets for these brands. These companies have warehouses where they store all their manufactured goods and then deliver them to customers as per their needs. The company runs in the online world, and if the internet is shut down, so will its existence. These pure-click e-commerce companies do not have a store, so they can save a lot of money and have global access to the internet. Some renowned examples of pure-play e-commerce companies are Amazon, eBay, Flipkart, Spotify, Wynk, and others. These stores sell everything, ranging from books, music, toys, food or grocery items, clothes, financial services, insurance, stocks, and others. Pure-click companies can be of different kinds, like search engines, enabler sites, commerce sites, content sites, internet service providers, transaction sites, and others.
Pure-click e-commerce companies can be −
B2C E-commerce Models There are many companies offering an amalgamation of products from every brand, like Amazon and Flipkart, and on the other hand, we see brands coming up with their own applications and websites through which they only sell their own products, for example, Ajio, Lenskart, and others.
B2B E-commerce Models The largest B2B e-commerce company, Alibaba, is homegrown in China, and the brand has faced a lot of oppression because of communist rule. The B2B e-commerce model provides customers and buyers with advantages like −
Information about the supplier’s websites.
Information intermediaries: they provide the company with the information available on the different competing brands.
Other people link the buyers and the sellers.
Customer communities where all the customers can interact, share their stories, and even work on common grievances.
Conversion ratio and the improvement of pure-click e-commerce companies
It is found that the conversion ratio of pure-click e-commerce companies is around 2 to 3% of the total site visitors, whereas the conversion ratio of the visitors of brick-and-mortar shops is around 5%. Companies have to work really hard to grab the customer’s attention in this cutthroat market environment. To ensure that viewers are converted into customers, a company can take care of the following things −
Expand the picture of your product offerings.
Ensure that the website or application is both mobile- and desktop-friendly.
Ensure that the loading time is not high for the website.
Make sure to use colors and fonts that are attractive.
Work on the user journey to ensure a smooth journey with no obstacles in the way.
Collect information from the first visit and use that to give reminders to customers once in a while.
Also, ensure that your company has good return policies and after-sales services.
Offer something new to the customer apart from accessibility and flexibility, like BlinkIt and online delivery applications that came up with the model of sending the goods to customers’ doorsteps in less than 10 minutes. Amazon came up with a one-day delivery model, and Dominos the pizza delivery company came up with the scheme that if the pizza is not delivered to you within 45 minutes, then the pizza is free for you and others.
The major reason for the low conversion ratio is the absence of personal touch, human connection, and expert company advice from the sales representative. Customers missed that a lot, and that is the reason why many companies came up with 24*7 sales representative support and support avatars to ensure that customers can interact with the brand’s person of contact when they are making a purchase decision and have a delightful shopping experience.
The benefits of purchasing from the e-commerce website are
Comparison becomes easy with E-commerce − Customers can easily sit at their home and compare different factors of the products like the cost of the product, the look of the product, the product features, the benefits of using the product, the availability of the product, and others without any hassle.
Accessibility to the customers − Consumers can buy goods 24 hours a day, seven days a week.
Flexibility and ease − consumers can make the purchase decision at their convenience and get the goods delivered to their doorstep. It is very easy for the customer now to gather all the product information while being at home and then doing the final purchase.
Discounts or price reductions −Since many intermediaries in between are eliminated, companies can offer consumers discounts on the MRP, thereby saving consumers a lot of money.
The benefits of selling through e-commerce websites are −
No physical outlet required − Companies can keep their products in the warehouse, and they do not have to worry about having a physical store in every district for the customer’s convenience. They can save a lot of costs in terms of the rent of the place, the creation of the store, salaries for the employee, and others.
Higher margins of profit − Since firms do not have to share a percentage of their profits with the intermediaries, they can easily book themselves higher profits.
Can reach a mass audience − Companies can easily reach more consumers with the help of e-commerce. Customers from all over the world can shop at the company and have their purchases delivered to them.
With E-commerce, there is no problem of overstocking and understocking of inventory − since the goods are now stored in one warehouse and we do not have individual stores where the company would have to stock the items there is no over-stocking or under-stocking of inventory. This will reduce the problem of inventory understocking and overstocking. Companies will be able to serve consumers better.
Pure-click e-commerce companies are the future of the digital world. A world where the customers no longer need to hold the products in their own hands while making the purchase decision or would want to go to the store for the purchase journey. It is at the extreme end of the marketplace. In the future, we will see a lot of pure-click e-commerce companies, but also a mixture of pure-click e-commerce companies and brick-and-mortar and motor e-commerce companies.
Customers of luxury products, automobile customers, and others would always feel the need to go to an outlet to make the purchase decision. In a survey, it was also found that customers miss the interaction with the sales representative while making their buying choices. It is time that we sail on two boats to ensure happy customers for the brand.
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