In 2020, when the world was hit by the Covid-19 pandemic and most businesses were forced to turn online-only, we saw ten years’ worth of online retail growth in just 90 days. When the world managed to control the pandemic, this trend didn’t slow down. In fact, both e-commerce and digital commerce as a whole continue to grow.
Confused? Let’s have a look at the differences between e-commerce and digital commerce.
E-commerce vs digital commerce
E-commerce, short for electronic commerce, refers specifically to the buying and selling of goods or services using the internet. This encompasses online retail stores, marketplaces, and any business transactions that take place over the internet. E-commerce has revolutionised the way people shop by offering the convenience of purchasing products from anywhere, at any time, with just a few clicks or taps on a device.
On the other hand, digital commerce is a more expansive term that includes not only e-commerce but also physical stores that utilise digital payment methods. Digital commerce, in this broader context, encompasses any business transaction where payments are processed digitally, whether through credit cards, mobile phones, or other electronic methods. This means that even traditional brick-and-mortar stores that accept digital payments, such as contactless cards or mobile wallets, are part of the digital commerce landscape.
Whether online or in-store, digital commerce is quickly becoming the new standard everywhere. Businesses are adapting to the evolving preferences and demands of consumers, who now expect seamless and secure digital payment options in both online and in-person shopping experiences.
We have seen simple online sales evolve into a multitude of different platforms and transaction methods – new marketplaces, modern POS systems, payments through digital banking, phone, watch… And the digital commerce landscape keeps changing, as businesses expand their presence.
More than just e-commerce, digital commerce is now an integral part of modern business operations, transcending the boundaries between online and offline shopping environments.
Digital commerce challenges and opportunities
As new forms of digital sales continue to pop up, businesses continue to adapt to ensure they offer a range of payment methods for their customers, whether online or in-store. That means a huge increase in the volume of sales data from different sources that becomes more complex to collect, categorise and manage.
So whilst digital commerce opens a window of opportunities for business owners, it also represents a challenge when it comes to keeping your accounts in order. That includes:
- multiple payment methods and the data that needs to be processed, itemised and reconciled;
- overseas transactions through different currencies and locations that require correct categorisations to stay compliant, as well as different taxes that need to be applied;
- extra level of inventory tracking and forecasting to preserve cash flow and profitability;
- cash flow uncertainties and the need for deeper insights into performance to stay competitive.
Due to the variety of platforms digital commerce businesses can use and the volume of transactions they have, accounting and bookkeeping can become very complex and fast-paced. Keeping up-to-date with transactions in real-time is nearly impossible without automation.
By choosing a smart, digital commerce accounting solution that integrates with over 30 different platforms and provides quick insights into your business performance, you have the confidence to expand your business.
With full visibility of your transactions, you free-up time so you can focus on improving your business and engaging with your customers. Your accountant can also use the data to help you make proactive decisions, save money and future-proof your business with in-depth insights. Plus, you’ll have extra time to consider digital sales trends and identify when to cut expenses or explore areas of your business that deserve more investment.
The best bookkeeping solution for digital commerce businesses
There’s no need to choose between e-commerce vs digital commerce solutions – today, you can choose a sophisticated tool that takes care of all your business’s omnichannel transactions. Trusted by thousands of accountants and business owners worldwide, Dext Commerce makes managing digital sales data simple. It solves the challenge of manually fetching and consolidating transactions from multiple digital commerce and payment platforms in different formats. Dext Commerce is a must-have for modern businesses that already work with multiple digital commerce platforms across different markets or wish to expand.
With a wide array of integrations, Dext Commerce offers all the digital commerce solutions you need at your fingertips:
- Sync with the world’s largest e-commerce sites, POS platforms and digital payment providers to transfer and organise sales transactions into one standardised view – no more CSV uploads into the general ledger and no more manual errors.
- Analyse data on an SKU level and, if need be, look up records by type using in-built filters. Manage sales, shipping costs, fees and refunds from multiple platforms in one place.
- Receive sales data in real-time and correctly assess cut-off dates, cash and accrual-based accounting methods and more. Get a full overview of business activity and revenue.
- Store all digital sales data in one place to comply with new regulations.
- Correctly assign fees and tax rates at the point of sale to remain compliant across all global transactions – domestic and international.
- Automatically export real-time reports.
- Use the new reporting capabilities to get better insights and advice from your accountant.
- Spend more time focusing on what you love instead of entering numbers on a spreadsheet.
The perfect blend between traditional and online, digital commerce is reshaping the way customers shop. And, when it comes to automating your business accounting, the smartest solutions can make your life much easier. It’s crucial that businesses invest in the best omnichannel transactions solution to make the most out of this opportunity and continue to thrive.