Have you ever tried to purchase anything over the Internet? Sell something old stuffs using your computer or mobile phones? If so, you've been a part of this called electronic commerce. Also known as e-commerce, electronic commerce is the process by which businesses and consumers buy and sell goods and services through an electronic medium.
Electronic commerce emerged in the early 1990s, and its use has increased at a rapid rate. Today, the majority of companies have an online presence. In fact, having the ability to conduct business through the Internet has become a necessity. Everything from food and clothes to entertainment and furniture can be purchased online. Now a days, it’s the easiest way for shopping. Even if you lived from far, far way!
Two familiar examples of electronic commerce companies are eBay and Amazon. Both of these companies allow consumers to purchase a variety of goods and services online from businesses and other consumers, while eBay also hosts online auctions. Consumers on these sites typically have numerous payment options, as well as choices for how their products are delivered.
E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. The types of E-commerce includes:
• business-to-consumer - this is the most common type in which a business sells products or services directly to consumers over the Internet.
• business-to-business - where companies sell products or services to other companies over the Internet.
• consumer-to-consumer – this the type wherein consumer sell products to other consumers
• consumer-to-business. electronic commerce involves consumers selling products or services to businesses.
E-commerce applications:
E-commerce is conducted using a variety of applications, such as email, online catalogs and shopping carts, EDI, File Transfer Protocol, and web services. This includes business-to-business activities and outreach such as using email for unsolicited ads (usually viewed as spam) to consumers and other business prospects, as well as to send out e-newsletters to subscribers. More companies now try to entice consumers directly online, using tools such as digital coupons, social media marketing and targeted advertisements.
E-commerce conducted using mobile devices and social media is on the rise as well: online spending was via social commerce in with Facebook, Pinterest and Twitter providing the most referrals.
The rise of e-commerce forces IT personnel to move beyond infrastructure design and maintenance and consider numerous customer-facing aspects such as consumer data privacy and security. When developing IT systems and applications to accommodate e-commerce activities, privacy rules and information protection protocols must be considered.
Benefits of E-commerce:
The benefits of e-commerce include its around-the-clock availability, the speed of access, the wide availability of goods and services for the consumer, easy accessibility, and international reach. Its perceived downsides include sometimes-limited customer service, consumers not being able to see or touch a product prior to purchase, and the necessitated wait time for product shipping.
• Gain customers who live far locations - all you need is an internet connection: due to drop-shipping, digital payments, and online security, it’s now easier than ever for companies to set up a digital storefront that complements their physical one. With the benefit of reaching customers who were held back by physical distance before, e-commerce is an efficient way to widen your market reach.
• Lower costs of expenses - another great aspect of e-commerce is its potential in decreasing your expenses. There are many items that affect physical storefronts: storage costs, utility fees, and even salaries for salespersons to man them.
When it comes to e-commerce, a lot of these costs are slashed. Instead of holding inventory in multiple retail locations, businesses can simply store them all in one warehouse and only pay for utilities there. For salaries, sales personnel are taken out of the equation: as an end-to-end shopping experience, e-commerce websites let customers conduct their own research, find for their preferred sizes and colors, and even facilitate their own checkouts.
For many businesses, shifting the shopping experience to an automated system doesn’t just lessen costs. It also reduces margins for error, allows for easier scaling, and streamlines processes—all of which contribute to the bottom line.
• Beat competitors as this is a round the clock business -24/7 business - another great thing about e-commerce? Round-the-clock operation. You never have to close your e-commerce store simply because you don’t have to. As long as its infrastructure is solid, it can run on its own. With the exception of deliveries having a fixed window, e-commerce websites operate on any time frame.
Advantages of Ecommerce. Faster buying/selling procedure, as well as easy to find products. More reach to customers, there is no theoretical geographic limitations. Low operational costs and better quality of services.
List of some e-commerce advantages:
• Low Financial Cost
• 24/7 Potential Income
• Sell Internationally
• Easy to Showcase Bestsellers
• Personalized Online Experience
• Affordable employees
• Easier to Encourage Impulse Buy
• Easy to Retarget or Remarket to Customer
• Customers Get a Less Invasive Experience
• Gain Access to Customer Data Easily
• Able to Process a High Number of Orders
• Can Scale Business Quickly
• Can Grow Business Organically with Content
List of some e-commerce disadvantages:
• No One Can Buy During a Site Crash
• Customers Can’t Try Before They Buy
• E-commerce Is Highly Competitive
E-commerce is definitely exciting and here to stay. Be ready for a new business, opportunities and be a part of this world of technologies. Are you ready to expand towards this digital future?