E-commerce is the process of selling goods and services online. Using electronic payments, customers purchase products on the website or online marketplace. After receiving the payment, the merchant ships the goods or provides the service.
Amazon started selling books in the early 1990s, but today it’s a multibillion-dollar industry – and it has grown even larger since the pandemic.
E-commerce refers to buying and selling tangible goods and services online. To process a transaction, more than one party must exchange data or currency. E-business includes all of the processes required to run a company online. It is part of the greater electronic business (e-business) industry.
By providing cheaper and more efficient distribution channels for their products or services, e-commerce has helped businesses (especially small businesses) reach a wider market.
It’s not as easy as it seems to provide goods and services. Research about the products and services you wish to sell, the market, audience, competition, and expected business costs is required.
After that, you’ll need to choose a name and set up a legal structure, such as a corporation. The next step is to set up an e-commerce site with a payment gateway. A small business owner who runs a dress shop can set up an online shop promoting their clothing and other related products and allow customers to make payments through a payment processing service, such as PayPal.
How does e-commerce work?
The principles of e-commerce are the same as those of a physical store. A customer browses your e-commerce store, makes a purchase, and leaves. Your customer doesn’t have to get off their couch, and your customer base isn’t restricted to a specific geographic area.
Operating an e-commerce website is the same regardless of whether you sell running shoes or home supplies:
Order acceptance: The customer places an order on your website or e-commerce platform.
Order processing: The order is processed, the payment is processed, and the sale is logged.
Shipping the order: The final step in the e-commerce process is shipping the order. If you want repeat customers, you must ensure prompt delivery.
Types of E-commerce
(B2B) In e-commerce, products, services, and information are exchanged electronically rather than between businesses and consumers. Businesses can search for products, services, and information online and initiate transactions through e-procurement interfaces through online directories and product and supply exchange websites.
(B2C) The retail aspect of e-commerce on the internet. Businesses sell products, services, or information directly to consumers. The term became popular in the late 1990s when online retailers and sellers of goods were a novelty.
There are innumerable virtual stores and malls on the internet today selling all kinds of consumer goods. One of the most well-known examples of these sites is Amazon. It dominated the B2C market.
(C2C) The practice of trading products, services, or information online between consumers is a form of e-commerce. Third parties usually conduct these transactions.
(C2B) This type of e-commerce allows consumers to sell their products and services online for bids and purchases from companies. B2C commerce is the opposite of this model.
A popular C2B platform is a market that sells royalty-free photographs, images, and media.
(B2A) refers to transactions conducted online between companies and public administration or government bodies. Many branches of government are dependent on various types of e-services or products. These products and services include legal documents, registers, social security, fiscal data, and employment. Businesses can supply these electronically.
(C2A) A consumer conducts an online transaction with a government agency or public administration. In the following areas, individuals frequently use electronic means to purchase products or services from the government:
- Social security.
- Mobile E-commerce:
(m-commerce) Online sales transactions are conducted using mobile devices like smartphones and tablets. Mobile devices can make payments, conduct banking, and shop. Mobile Chatbots facilitated M-commerce, which lets consumers transact via voice or text.
Should I use a marketplace or a website for my e-commerce store?
When it comes to setting up your e-commerce store, you have two options: you can build your website or join an online marketplace like Amazon or Etsy. Your best choice depends on your specific business – an important factor is whether your business is established or just starting.
Our ICT solutions through the digital world will enable you to run your business more effectively.
Phone Number: +1 (469)334-3114