Traditional and e-commerce from competition to excellence
TRADITIONAL AND E-COMMERCE FROM COMPETITION TO EXCELLENCE
E-commerce became known with the flourishment of information technology.
It changed the usual traditional trade concepts and expanded the commercial market space to include the entire world.
Although many people turn to e-commerce for reasons, like:
- Enhancing competitiveness.
- Encouraging innovation.
- Creating various job opportunities.
However, some still attached to traditional commerce, perhaps for the fear of lack of credibility or out of habit.
But we wonder:
What are the reasons that the vast majority turn towards e-commerce?
What are the differences between traditional commerce and e-commerce?
Traditional trade :
It is a process of buying and selling products and services, which are traded by individuals, merchants, bodies, companies, and commercial institutions, and their existence is based on four elements:
- The product.
- The Market.
- The Customers.
- The payment.
There are things that must be taken into account in traditional trade, including:
- Studying the market, knowing its needs, and defining the target group of customers.
- Purchase of goods from their sources, customs clearance, transportation, and payment of shipping costs.
- Securing the right place to store the goods and the right place to display them in the market.
- Promote and market goods through various advertising means to ensure that they reach customers.
- Selecting a team of sales staff and training them to deal with customers and attract them to the products.
- Carrying out the necessary accounting operations.
E-commerce is similar to traditional commerce in that both of them are based on the process of trade exchange and selling goods, except that the means differ between them!
Whereas traditional commerce depends on selling face to face, e-commerce depends on the Internet and electronic and smart devices, and the selling process is through either websites, e-mail, or mobile applications.
The three most popular types of e-commerce:
E-commerce is divided into nine sub-categories, and we will discuss the most popular three, which are:
- E-commerce between business enterprises (B2B):
Such as when a company uses the Internet to obtain its requests for information, services, or products from another company.
Statistics prove that about 85% of e-commerce transactions are of this type.
- Business-to-consumer e-commerce (B2C):
Here, business owners offer their products and services to customers through online stores instead of presenting them in traditional markets or shops.
The facility might have a physical presence on the ground, such as Amazon.
- E-commerce between businesses and government organizations (B2A) or (B2G):
Employers interested in this type of e-commerce allocate their services for the benefit of government institutions and agencies and not individuals.
On the other hand, government agencies use central websites to trade and exchange information with various business organizations.
This may include (financial measures – social security – legal and other documents).
An example is the agreement of governments with those involved in establishing electronic platforms to create websites for ministries or state institutions.
Also there is Accela, a software company that provides government software solutions, and general access to government services for permits, planning, licensing, public health, and more.
Advantages of e-commerce over traditional commerce:
Despite the precedence of traditional commerce, e-commerce is sweeping the markets and the business world due to many features, including:
- E-commerce provides a wide market that reaches a global scale and ensures rapid and secure spread at much lower costs than traditional commerce.
- Ease of buying and selling 24 hours.
- E-commerce gives the merchant the freedom to communicate with customers and clients at any time through its multiple means.
- E-commerce provides easy access to customer feedback on the services and products provided through information and opinion exchange platforms, which facilitates the process of developing work and improving the quality of services and products provided by knowing the weaknesses directly from the customer.
- Traditional commerce relies on inclusive marketing, while e-commerce allows personalization.
- E-commerce is characterized by the ability to reduce inventories by using the withdrawal process.
(In the withdrawal system, the process begins with obtaining a commercial order from the consumer, and providing him with his request through the appropriate timing manufacturing.
The withdrawal process also allows the product or service to be manufactured according to the buyer’s requirements, which gives the company a commercial advantage over its competitors).
E-commerce is one of the new and complementary forms of traditional commerce.
It has become one of the arms that contribute to growth and development, especially after it worked on the following:
- Keeping pace with the global economic and trade sector.
- Making a complete change in the provision of services, products, and comprehensive offers for all marketing and shopping options.
- It worked with international efforts to lift restrictions and remove borders for this type of trade.
Although the term e-commerce is a recent term, the industrial revolution and the tremendous technological development that we have reached today contributed to its emergence.
However, it was the latest major quantum leap in the field of trade and made it more smooth and easy at all levels.
How Artificial intelligence supports e-commerce?
How Artificial intelligence supports e-commerce?
Artificial intelligence is the mandatory trend of the future digital world :
According to US entrepreneur, blogger, and author Seth Godin:
” AI does something that we weren’t necessarily crazy about doing it anyway, it does it quietly and in good health, and then we take that for granted.”
Although at first glance it seems terrifying, it seems that artificial intelligence has become a mandatory trend in the world, e-commerce, and various businesses.
And if you delve a little into the success stories of e-commerce such as Amazon and Netflix, you will discover that it has been able to use artificial intelligence in the best way to develop its services, increase the number of its customers and achieve more profits.
Mentioning some of its uses :
1- Artificial intelligence and A/B tests :
This type of test is based on the methodology of studying by comparing two versions of one variable (A / B)
and how the consumer responds to each version and then chooses the version that customers respond best with.
Artificial intelligence helps provide the appropriate tools to conduct such tests, analyze data, and extract results
with ease without the need to spend much human energies to do this task.
2- Artificial intelligence and Chatbots :
It is good for e-commerce to rely on these robots, which are computer programs that interact with dozens of customers at the same time, answer questions all the time, provide suggestions, deal with complaints and solve problems.
And you can notice that many sites and platforms have already started using them and developing the feature of dialogue in them.
for example; Amazon has begun to deal with the issue of automatically answering questions using artificial intelligence by making use of content within its website pages.
Siri, Google Now, and Alexa are the famous examples that have introduced us to the idea of a virtual assistant over the past years.
3- Artificial intelligence in generating customer-centered research:
This level of artificial intelligence is a powerful and dynamic feature in providing a personalized shopping experience that achieves:
- Consumer satisfaction.
- Targeting potential buyers again.
- Enhancing the selling game in general.
Often when searching for a product, consumers come across dozens of useless products and annoying ads.
However, using artificial intelligence, different brands and websites can predict consumer behavior and provide useful recommendations by working on visual search capabilities that tend to match the product.
learn real consumer behavior and collect various data from user activities on smartphones and computers.
4- Visual and audio search is one of the most important techniques of Artificial intelligence :
- Voice search is one of the modern technologies that harvested amazing numbers of shoppers relying on it to obtain the services or products they want in e-commerce.
- This technology helps improve the shopping and search process of your site or store.
- According to some opinions, the year 2021 will bring about a 30% increase in revenue for those who will provide their sites with voice search.
5- Dynamic pricing tool or miscellaneous intelligence :
This tool is related to restructuring the prices offered on the website or online store.
as it does the following:
- Take a comprehensive look at all the products on the market.
- Compare prices.
- Determine the inventory and the customer file through the tracking files.
- Amending the list of quotations with high accuracy based on the above-mentioned points.
6- Artificial intelligence algorithms – targeted ads :
You can use AI algorithms for:
- Tracking cookies.
- Browsing history.
- The words you searched for recently.
- The number of times the consumer visited a website or searched for products.
- You also display advertisements related to customer interests.
Artificial intelligence technology is present at GITEX :
GITEX Technology Week 2020 kicks off in its fifth year at Dubai World Trade Center
as one of the largest global events in the Middle East, North Africa, and South Asia region.
It is the ideal location for launching new products, holding the latest demos, and signing major deals.
It also includes exhibitions, conferences, and business centers, and plays its role as a forum that hosts thousands of meetings and sessions, and allows the exchange of ideas, and stimulates cooperation between major companies, while giving the digital industry the best in-depth insight into tomorrow’s technologies.
GITEX 2020 will also discuss 5G technology, artificial intelligence technology, smart cities, the future of smart cars, and the role of technology in facilitating people’s lives.
Dropshipping and all you need to start working with it
DROPSHIPPING AND ALL YOU NEED TO START WORKING WITH IT
The term drop shipping has become very popular and has become one of the most important types of business on the Internet.
Many have achieved great successes through it, especially in the Arab countries.
What is dropshipping?
The literal Arabic translation of “dropshipping” means dropping the shipping process.
As for drop shipping, in the term, It refers to a type of business that is done on the Internet and belongs to the world of e-commerce.
And in drop shipping, the online store does not keep an inventory.
But as soon as the buyer orders to buy one of the products offered in the store, the store makes a purchase order from a third party (wholesaler, another large store, or factory) that ensures that the product is shipped directly to the buyer.
Thus, the online store in the case of dropshipping is just an intermediary between the customer (the buyer) and the wholesaler or factory.
The profit here is the difference between the sale price and the purchase price.
Here is an image explaining the idea of shipping in a simple way:
Features of dropshipping :
We do not mean to talk about the defects or the advantages directly.
But we mean the characteristics that determine the form and nature of this type of work, which will help you to know the advantages and understand the obstacles that may face your business in dropshipping.
And here are some:
First; Does starting a business in dropshipping require owning an online store?
You don’t necessarily have to own an online store to start working in dropshipping.
Many marketers use popular online stores as alternative platforms to display their products.
For example, you can use the eBay store to display products from AliExpress in a drop-shipping way, and when an eBay visitor views your product and makes a purchase order, you place an order from Ali Express to bring the product to the buyer’s address.
You can also use social media as a platform to display products.
Second; In dropshipping, your online store is just an intermediary:
Your online dropshipping store will not play a fundamental role in the trade process, and it will only be an intermediary in it.
The three main pillars of trade are:
- The factory that conducts the production process.
- A wholesaler who buys from factories sells to retail stores.
- The retailer sells directly to the consumer (this represents most types of online stores on the Internet in general).
With your business in drop shipping, your online store will be just a channel that connects the consumer to the merchant or factory that provides the drop shipping service.
Third; Drop shipping does not need large capital:
As a dropshipping store owner, you will purchase from a wholesaler after you receive an order from a consumer.
Here, you do not have to keep any stocks, and this will not make you need a large capital to start.
But this does not mean that there are expenses for creating the online store, and marketing expenses that you should not take into account.
Fourth; Drop shipping is a process completely hidden from the buyer:
Your own store is the interface that the buyer will deal with, and it is assumed that the product reaches the buyer and has the name and logo of your store on the cover.
The dropshipping buyer will not know anything about the wholesaler who owns the product.
For him, the sale is done through your store, which no one else knows.
And if you encounter any problem, he will revert to you to solve it.
Fifth; In dropshipping, there are multiple sources of products:
In drop shipping, you do not necessarily have to rely on one source for products, but you can display thousands of them from completely different sources.
This is a very important feature.
Diversity in products attracts more buyers and increases sales.
But on the other hand; The diversity of product sources can be a cause of buyer discomfort.
In the event that the buyer buys two products at the same time, but from two different sources, this will make him logically expect them to arrive at the same time, because it is assumed that they are from your store directly. As a drop shipping store owner, you should expect this and prepare for it.
Sixth and finally; the process of trade in the dropshipping is very easy and fast:
The simple idea behind dropshipping allows anyone with some simple skills to enter the world of e-commerce.
This is an advantage for you, and an advantage for all of your competitors as well.
It also leads to a significant increase in the level of competition in drop shipping, which implies the inevitability of reducing the profit margin to obtain good sales.
What do I need to start in dropshipping?
Success in dropshipping is based on many elements and contains many details.
Here are four basic things that are necessary to start working with drop shipping, which are:
First; building an online store :
There are a lot of solutions and options available for creating an online store.
They differ among themselves according to cost and ease, but many of them can be relied upon to create an online store for the purpose of drop shipping, which are:
(Programming companies – WordPress and WooCommerce plugin – specialized platforms).
You can also visit the Xcart website and learn about the services it provides in the field of creating professional online stores, which were reached by the efforts of the best experts and specialists in the field of creating stores and websites, in line with the needs of different customers.
You can also contact us via the following link:
Second; Contracting with a dropshipping wholesalers supplier:
It is a very sensitive and important point.
There are a lot of suppliers who work in the way of drop shipping (wholesalers, supermarkets, or factories).
Here, you have to carefully define your choices according to your own circumstances, including:
- The target market (the country in which you want to sell your products).
- Does the supplier allow products to be shipped to these markets or not?
- The nature of the products you want to sell.
- The prices offered by the suppliers and their suitability with you.
Here are the most important sites that provide drop shipping for stores:
- Dropship direct
Third; Setting the method of payment for buyers and suppliers:
When working in the dropshipping business, you have to set the method of payment for buyers from your store.
You also need to determine the method by which you will pay suppliers.
At this point, there are a lot of options, the most important of which is PayPal, which is an acceptable payment method for most suppliers, and you can easily set it on your online store to be a way to receive money from buyers.
Fourth; Create a marketing plan and build a brand for your store:
Your success in dropshipping depends largely on your success in marketing your store to potential buyers.
This includes advertising campaigns on social media and on Google Ads.
It must be noted here that marketing starts from setting prices, and carefully targeting the most appropriate market.
Dropshipping is a somewhat new field in e-commerce, and it represents a great opportunity for everyone seeking to create their online store without going into the complexities and costs of owning a traditional store.
After a year of missed opportunities caused by the COVID-19 pandemic, there is no doubt that this is the best time to do business and enter the field of drop shipping and advanced e-commerce.
The most important sources and training courses for learning drop shipping:
For everyone who really wants to start learning dropshipping in a thoughtful manner and with deep knowledge, here is a list of the most important sources and training courses that you can benefit from:
The benefits of Klip digital wallet
The benefits of Klip digital wallet
Klip Digital Wallet is a unique and interconnected digital payment platform.
Launched by the Emirates Digital Wallet with the aim of replacing traditional banknotes with digital cash.
It is characterized by:
- High levels of efficiency and integrity.
- It can be used easily without the need to open or own a bank account.
- It provides many facilities for financial transactions carried out by individuals and business owners.
Here are some of these facilities in more detail :
The facilities provided by the Klip Digital Wallet to individuals and clients:
Klip Digital Wallet has made many things easier for individuals and customers in the United Arab Emirates, including:
You can now use the Klip Digital wallet to pay when purchasing products from shops or via the Internet, as it is a very safe system.
It will also keep a record of the purchases you made, and you will not need a bank account with it, as you will be able to increase your balance whenever you want.
If you want to transfer money to your family members in another country, or to a friend or co-worker, the Klip Digital Wallet is your best choice.
All you have to do is send the money order via SMS, to reach the recipient’s Klip Digital Wallet account immediately.
And if he does not have a Klip account, there will be no problem at all. When the transfer arrives, he will be invited to download the application, and then the receipt process will be completed.
Then the app will automatically create a payment channel, that is ready to receive transfers easily and quickly in future times.
Klip Digital Wallet saves your money until you need to use it, but what distinguishes it from other traditional wallets is that it is safer.
Moreover, if you lose your phone or your device malfunctions, there should be no problem at all.
All you have to do is log in to your account from another phone, and your money will remain completely safe.
Facilities provided by the Klip Digital Wallet to store owners :
We can summarize these facilities with three things, which are:
- Shorter queues.
- Safer payment receipts.
- Eliminate the return of small coins to customers.
With the Klip Digital Wallet, there will be no need to keep paper money, save it in banks, or record sales transactions.
As It provides all the necessary information and data for any transaction that takes place through it.
Most of all, payments received through this wallet will be available immediately, and can be used quickly to pay for new purchases.
Likewise, there will be no need to return small amounts and remaining currencies to customers
thus long lines will be reduced to a minimum, and the payment process will be completed quickly.
How does the Klip Digital Wallet support (receiving, purchasing and recording transactions operations)?
First; Receipt Operations :
If you are a store or business enterprise owner, you definitely need to receive payments for your products easily and securely, right?
Then you should have Klip Digital Wallet!
Not only does it facilitate this process, but it also gives you confidence and peace of mind by providing a record of all the transactions that take place through it.
You can use its easy, fast, and practical features to suit your best-selling products or services and receive payments more efficiently.
Which avoids the problem of long waiting in the pay lines.
Likewise, the funds that you receive through the Klip Digital wallet will be immediately available for use or deposit in the bank.
Second; Purchasing Operations :
The Klip Digital Wallet is an ideal payment solution for new purchases.
You can use the money that you receive from your current sales to pay your suppliers.
This ensures quick delivery of goods and people will not face a shortage in the stock of goods.
Third; Transaction recording processes :
Klip Digital Wallet will relieve you of the trouble of tracking sales and the resulting revenues, as it provides a complete and direct report on all transactions, and you can therefore record it daily or whenever needed.
With the Klip Digital Wallet, the money will always be in your pocket and with you, but on your smartphone!
UAE digital wallet present Klip platform for digital cash
UAE digital wallet present Klip platform for digital cash
“The vision of the Emirates Digital Wallet is to encourage society to abandon the traditional circulation of banknotes.
For this purpose, our mission includes implementing and managing a digital cash platform that replaces traditional banknotes with digital cash, with the participation of all banks, companies and individuals”.
This is what Mohammed Al-Jayash, Chairman of the Emirates Digital Wallet Company, said.
This came after the Emirates Digital Wallet took its first major steps to limit the use of traditional banknotes, and announced its readiness to launch the digital cash platform “Klip”.
The establishing banks of the Klip digital wallet :
Under the patronage and support of the Federation of UAE Banks, this initiative was prepared with the participation of 15 leading national banks in the UAE, whose aim is to promote digital transformation in the country.
The Emirates Digital Wallet is taking deliberate steps to ensure that all individuals and companies are directed to use the Klip Digital platform instead of banknotes.
The Klip Digital Wallet is directly regulated by the Central Bank of the United Arab Emirates, however, the banks participating in its establishment are:
- Abu Dhabi Commercial Bank.
- Abu Dhabi Islamic Bank.
- Al-Hilal Bank.
- Bank of Sharjah.
- Commercial Bank of Dubai.
- Dubai Islamic Bank.
- First Abu Dhabi Bank.
- Investment bank.
- Mashreq Bank.
- National Bank of Fujairah.
- Ras Al-Khaimah National Bank.
- Umm Al Quwain National Bank.
- Sharjah Islamic Bank.
- United Arab Bank.
The Klip Digital Wallet is an additional step towards a digital society :
“The launch of a nationwide digital cash platform is a complex process,” says Al-Jayash.
Through development, improvement and extensive testing, we were able to provide the ability to exchange traditional cash for its equivalent in digital money.
As we enter the final round of tests, we are taking a further step towards a society that reduces reliance on traditional money.
The Emirates Digital Wallet continues to work with all banks and financial institutions in the United Arab Emirates, to help transform the UAE into a society free of traditional cash.
And this by attracting all sectors in the UAE to become part of the Klip Digital Cash Wallet.
The UAE banking sector has made significant progress in the digital field.
It adopted the best digital technologies to create a more effective financial system, and support the UAE’s vision aimed at empowering society at all levels.
Abdul Aziz Al Ghurair, Chairman of the Emirates Banks Federation, confirms this, saying:
“The upcoming launch of the Klip Digital Wallet is a milestone in our journey towards digital transformation through which we seek to limit cash circulation in the country and reduce the risks and costs associated with it.
We are confident that this pioneering initiative will boost the UAE economy, and add real value to companies and consumers alike throughout the country.”