Do you think E-commerce and digital marketing are the same? Most of the people are confused between them. Both of them are interconnected and serve different purposes. Digital marketing is related to product promotion, while E-commerce marketing is all about selling them using online platforms.
In this blog post, I will highlight the key differences between E-commerce and Digital Marketing for business success. I will give you a complete overview of both of the concepts, along with their exclusive benefits, below.
The different types of E-commerce and digital marketing will also be discussed. The success measurement metrics are also stated here.
If you wish to grow your business with higher traffic and reach, then you should think of joining a Digital Marketing Course!
Let’s start by having a look at the concepts first!
Table of Contents
What is E-Commerce?
The term E-commerce refers to the process of buying and selling goods or services using online platforms. It consists of payment systems, delivery systems and online stores. Clients may purchase anytime using their smart devices, such as phones or laptops.
At any time in the world, brands can sell to customers. Digital products and online bookings are also added to e-commerce. Popular instances are websites like Amazon, Meesho, Flipkart, and Myntra.
It is fast, simple, and emerging regularly. E-commerce makes it simpler for small businesses and large ones to reach a huge number of potential audiences.
Types of E-Commerce
There are various types of E-commerce, but I have chosen to discuss four major types below.
Here I go;
- Business to Business (B2B)
This type of E-commerce refers to the kind where one business sells directly to another company. A wholesaler offering goods to an outlet or retailer is one significant example.
Generally, the setups are for business purposes and are executed in bulk.
- Business to Consumer (B2C)
Here, businesses use online platforms to sell their products or services directly to customers. People directly purchasing from Myntra, Amazon and Flipkart are a great example. It is the most popular type of E-commerce that consumers use daily.
- Consumer to Consumer (C2C)
Individuals sell services and products to other individuals under this type of E-commerce. Online platforms such as OLX, eBay, and others enable users to sell and purchase products or services directly from other people.
- Consumer to Business (C2B)
Businesses get products or services from customers with this type of E-commerce. A popular example is a freelancer making a logo for a company. Then, this specific model is used by popular websites like Fiverr, Looka, 99Logos, and Vistaprint.
Benefits of E-Commerce
If a business is using E-commerce, then it will get some major benefits. I have tried to cover some of them below.
Improved Access: E-Commerce allows customers to purchase products anytime from any place. No limitations over time and location. This will enable brands to reach a larger audience and expand quickly across various locations.
Cost Reduction: It is popular due to its affordability to access online stores. The staff, rent, and electricity costs are saved. It allows small businesses to grow with a limited budget.
Higher Scalability: E-commerce makes it easy to expand a business. Without needing major modifications or a new format, you can grow your product line, reach new locations, and offer services to more audiences.
Personalization: Products are shown as per their user behavior on E-commerce sites. This boosts the process of personalization in shopping. Customers are appreciated and are highly interested in making repeat purchases.
Better Customer Retention: Online shops can keep customers longer by offering special deals, loyalty programs, and sending customized emails. Regular updates and special deals drive customers to make more purchases.
E-Commerce Success Metrics
Some significant metrics of E-commerce help businesses track business performance and work more effectively for success. Here we go,
E-Commerce Conversion Rates: This depicts the number of people who purchase. A higher rate means that your website is performing well. It aids you in determining whether your design and offerings appeal to potential customers.
Bounce Rates: The number of people who leave your website without making a click is highlighted by your bounce rate. A higher rate shows a lack of interest from audiences. Reducing bounce rates can boost revenue and overall audience engagement.
Customer Lifetime Value (CLV): CLV offers information about the total spending of a customer. A greater profit comes from each customer, which is represented by a higher CLV. It helps create a better marketing strategy and services.
Customer Retention Rate (CRR): CRR shows the number of customers who make repeat purchases. A higher CRR shows a greater quality of service. It is cheaper to keep current customers than to get new ones.
Customer Acquisition Costs (CAC): This refers to the money you spend to get a new potential customer. The better the costs, the higher the profit will be. You can plan your budget smartly with this.
Returning Customer Rate: This refers to how many customers have repeat purchases. The higher the rate, the happier and more satisfied the customers are. This reflects brand loyalty and greater product quality.
Net Promoter Score: This refers to how likely customers are to refer your shop to others. The higher score reflects their trust and love for your brand. It helps track brand loyalty and customer happiness.
What is Digital Marketing?
Digital marketing refers to the specific practice of promoting unique products and services online. It comprises catchy advertisements on social media, websites, emails, and Google.
Reaching a vast number of audiences online is the motto. It helps businesses or brands generate high-quality leads, traffic, conversion, and revenue.
Paid advertisements, SEO, and content marketing are essential tools used in digital marketing. It is used by top brands such as Nike, Adidas, Flipkart, and Zomato to increase their online traffic and visibility. In this highly competitive digital world, it is a smart way for rapid business growth.
Types of Digital Marketing
There are different Digital Marketing strategies, but I have picked only six major types to discuss below.
Here I go;
- Search Engine Optimisation (SEO)
SEO or search engine optimization guides your website to get ranked higher on search engines. It uses links, related keywords, and high-quality content. Good SEO refers to a higher number of people who can discover your website without any paid advertising.
- Social Media Marketing (SMM)
SMM helps businesses in promotions with greater integration of different platforms such as LinkedIn, Facebook and Instagram. You can have a higher reach, traffic, and more followers and boost sales by posting daily.
- Pay-Per-Click (PPC) Advertising
This refers to the marketing type where the business only has to pay when someone clicks on their ad. Your business can appear at the top of the search results. PPC drives targeted traffic fast.
- Email Marketing
This refers to sending personalized brand messages to customers or subscribers to share recent updates, special deals, product launching news, etc. It can keep customers loyal to your brand and help them make repeat purchases.
- Affiliate Marketing
This type pays you a commission, while a visitor buys something by clicking the link you shared. This process is less risky and helps you get higher business reach.
- Content Marketing
Content marketing is all about sharing informative articles, guides, and videos. You can capture more audiences and inform them about your brand more. High-quality content boosts trust and drives more website traffic.
Benefits of Digital Marketing
If a business is using digital marketing strategies, then it will have some key benefits for business growth. I have tried to highlight some of them below.
Higher Reach: Digital marketing aids you in reaching audiences across the globe. You will be able to connect with more people than local processes. This is highly effective, quick and simple to use over multiple platforms.
Better Audience Targeting: Your business is able to show ads to the right Audience, depending on their preferences, location, and age. You can get better results by saving money. You can reach only those interested in your business.
Higher Customer Engagement: Your business can connect with customers using likes, direct messages, and comments. This forms a solid bond. Highly engaged audiences are more likely to have a repeat purchase due to their higher brand loyalty.
Scalability and Flexibility: You can modify digital marketing tactics with your business whenever you want. It is straightforward to experiment with new strategies and adjust them according to business needs.
Digital Marketing Success Metrics
Some significant metrics of Digital Marketing help businesses track their daily business performance and work more effectively for business growth. Here we go,
Website Traffic: This depicts the number of visitors who have visited your website. The higher the traffic, the greater the chances of getting sales and leads. You can track your marketing reach and visibility online.
Click-through Rate (CTR): This refers to the number of users who clicked your link or ad. A higher CTR depicts how much your content is interesting to people. This will boost the ad performance while reducing costs.
Cost Per Acquisition (CPA): CPA refers to the money spent to get a customer. If the CPA is low, then you can get outcomes while spending less budget. CPA helps you measure the usage of the marketing budget and ad performance.
Return On Ad Spend (ROAS): This refers to the money you get from the ads. A higher ROAS reflects the good performance of your ads. It depicts whether you have a worthy budget for spending.
Return On Investment (ROI): This refers to the overall marketing profit. Higher ROI reflects greater business growth. It aids you in choosing which campaigns are cost-effective.
Conversion Rate Optimisation (CRO): This refers to the procedure of boosting your website to have higher signups or sales. It aids in converting audiences into potential customers and gets faster business growth.
Average Session Duration: This reflects how much time visitors are spending on your website. A longer session reflects that your content is useful and informative. It aids in boosting the engagement and qualty of your website.
Final Notes,
E-commerce and digital marketing are interconnected, and if you want to succeed in this highly competitive world, you must have a complete understanding of both. E-commerce starts just after digital marketing practices.
Hoping I have covered the major differences between E-Commerce and digital marketing in this article in very clear and simple terms. I have also included the concept of both of them, along with their types and success metrics that help businesses track their daily performance in order to grow the business in the above sections.
The benefits of e-commerce and digital marketing are also discussed in the above sections.
If you need additional information or would love to know more about E-commerce and digital marketing practices, you should join W3 Web School’s Digital Marketing Course. Get in-depth industry-led knowledge and conquer the highly competitive marketing landscape.
Happy reading.