Tips for getting started in e-commerce in Reunion

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E-commerce (also known as online commerce or electronic commerce) refers to all sales activities conducted over the Internet. This includes the sale of tangible or intangible services and products.

This form of commerce has grown exponentially over the past ten years due to:

The democratization of access to the web,
The rise of mobile devices, especially smartphones,
Increased consumer confidence in online activities (correlated to the two previous points).
E-commerce boomed in 2020 during the coronavirus crisis. Forced to stay home, consumers turned to the web to purchase all kinds of goods and services online. This trend continued after the health crisis, making e-commerce one of the world's main drivers of economic growth.

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According to figures from the Federation of E-commerce and Distance Selling (FEVAD), France is "the second largest European e-commerce country behind the United Kingdom and ahead of Germany" ( source ). This represents a market of 150 billion euros in 2022, almost 14% more than the previous year.

In addition to the health context, this boom in e-commerce can also be explained by the advantages it offers to customers:

Ease of comparison (price, offer, sellers, etc.): customers can easily search for the best offers and find the products or services that best meet their needs, while saving time and money;
Access to a wide variety of products and services , without physical or time constraints: since e-commerce sites are accessible 24/7, customers can make purchases whenever they want, regardless of their geographic location.
Comfort and convenience : Accessing an online store saves customers from having to travel to a physical store, queue at checkout, or even carry heavy shopping bags to their car. They can purchase everything they need from the comfort of their home or office, simply using an internet-connected device.
Flexible delivery options : E-commerce sites (usually) offer fast delivery services, sometimes free of charge (or rather offered) to allow customers to receive their purchases within reasonable (if not record-breaking) timeframes.
The different types of online commerce
E-commerce includes different business models , based on the use of the Internet to carry out commercial transactions:

B2C (Business to Consumer)
B2C is one of the most common e-commerce models. It involves direct transactions between businesses and end consumers .

B2C B2B e-commerce
B2B (Business to Business)
B2B refers to commercial transactions between one company (seller) and another company (customer). This business model can, for example, include commercial relationships between a wholesale manufacturer and a retailer.

C2C (Consumer to Consumer)
C2C involves direct transactions between consumers themselves, without the intervention of a company. This is the case, for example, when you buy a used product on an e-commerce site like Le Bon Coin.

C2B (Consumer to Business)
C2B refers to the act of a consumer offering products or services to a business. Closely linked to the internet, it concerns, for example, freelancers who offer services to companies. It can also apply to the services of certain influencers (nano or micro-influencers) on social media.

B2G (Business to Government)
B2G is another e-commerce model that involves commercial transactions between businesses and governments. In this context, companies offer specific goods or services to governments, government agencies, or public sector entities. As such, if a company responds to a public tender, it is referred to as B2G.

The e-commerce market in Reunion
In 2023, purchasing products or services online in Reunion Island is easy. E-commerce sites are multiplying, taking advantage of the growing appeal of this business model among Reunion Island consumers.

e-commerce in Reunion
Whether the products are exported from abroad or stored on the island, buyers are responding. Eight out of ten Reunion Islanders have already purchased a product online, half of them from local sites (i.e., those with headquarters in Reunion).

As in France and elsewhere in the world, this growth can be explained by the 2020 lockdown. Companies and consumers saw the internet as an opportunity to continue selling and buying.

Businesses then turned to e-commerce solutions to meet demand. In addition to changing consumer habits, this digital transformation has been facilitated by financial support offered by the Réunion Region (such as the digital voucher) and infrastructure development. For example, the arrival of fiber optics on the island has made internet access even easier.

The challenges of e-commerce in Reunion
Rich in opportunities for those willing to seize them, e-commerce in Reunion Island also brings its share of challenges. Although the market is mature, it remains competitive.

Competition is all the more intense because it is international. Many Réunion Islanders are turning to Asian e-commerce platforms to make online purchases, attracted by very low prices (despite very long, not to say uncertain, delivery times).

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With the democratization of international trade, Reunion Island companies specializing in e-commerce are also in competition with mainland companies: a package can take less than a week to transit between France and Reunion Island.

Moreover, some companies have specialized in this type of exchange. They allow residents of overseas territories to order on any website and have it delivered directly to their home (in Réunion, Martinique, Guadeloupe, etc.). This freight forwarder is then responsible for receiving the order, then reshipping it to the overseas territories, for a service and shipping fee (in addition to any delivery fees already paid to the e-commerce site).

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The challenges for local e-commerce businesses
Faced with these opportunities and challenges, two issues are facing e-commerce companies in Reunion:

Offer a differentiating and high-quality range of products and services;
Highlight their competitive advantage, particularly in relation to international offerings. This may involve promoting their offerings, services, proximity, fast delivery, etc.
As an e-commerce agency in Reunion Island , an expert in online sales since 2019, Axiom Marketing is here to help. Our specialists in Shopify online store creation, marketing strategy, and e-commerce logistics offer you a turnkey solution to propel your online business. Contact us to discuss (free of charge and without obligation) the potential of your e-commerce activity in Reunion Island!

Define an e-commerce strategy in Reunion
To succeed in your online hungary phone number data sales business, you need to define a well-thought-out e-commerce strategy, adapted to the requirements of the Reunion Island market.

Your product and service offering
What product or service will you offer?

This is the first question to ask yourself. Identify products that meet the specific needs of consumers in Reunion Island and that will help you stand out in the local market.

To do this, you can start by conducting in-depth market research. The goal is to understand consumer trends in Reunion Island, in the targeted industry, as well as the expectations of local consumers. You may also be able to identify untapped opportunities in specific niches.

Your target customers
Who are your products and services aimed at?

Determine your target audience in Reunion Island by analyzing their preferences, purchasing behaviors, and needs. Understanding your audience's demographics and consumer habits is crucial to tailoring your offering accordingly.

This step will help you implement the right marketing strategy. In other words, you want to target the right people to maximize your marketing efforts and maximize your revenue.