E commerce is an industry in which buying and selling take place only on the internet. Digital marketing helps e commerce marketers in attracting visitors and in facilitating purchases online. E commerce marketers make use of digital marketing to convert visitors into customers.
The ecommerce industry is expected to grow at an annual rate of 51% by 2020. 100% FDI (foreign direct investment) allowed into B2B (business-to-business) ecommerce and 100% FDI allowed under automatic route in marketplace model of ecommerce are some of the contributing factors for this rate of growth.
Absence of cyber laws, poor market research, privacy and security concerns, computer virus problem, digital illiteracy, returns and cancellations of products; along with payment and tax related issues are some of the challenges faced by the ecommerce sector in India.
Ecommerce marketers make use of the following digital marketing strategies:
- Making the website mobile-friendly
- Placing product-related videos on YouTube
- Creating guest posts on external websites
- Encouraging user-generated content
- Search engine marketing (SEM)
- Social media marketing
- Content marketing
- Email marketing and automation
- Display advertising
Establishing brand reputation, high conversion rates, wider audience reach, better engagement with the customers, influence over their buying decisions, cost savings, and greater return on investment (ROI) are a few benefits of implementing digital marketing in the eCommerce sector.