What is Ecommerce ?
Ecommerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions. Ecommerce is often used to refer to the sale of physical products online, but it can also describe any kind of commercial transaction that is facilitated through the internet.
Whereas e-business refers to all aspects of operating an online business, ecommerce refers specifically to the transaction of goods and services.
Advantages of Ecommerce
Faster buying process
Customers can spend less time shopping for what they want. They can easily browse through many items at a time and buy what they like. When online, customers can find items that are available in physical stores far away from them or not found in their locality.This is where ecommerce comes to the rescue for many shoppers. They go online, search for an item, get a fast response and can buy it just as quickly.
Advantages of e-business include helping one to choose from a wide range of products and get the order delivered too. Searching for an item, seeing the description, adding to cart – all steps happen in no time at all. In the end, the buyer is happy because he has the item and didn’t have to travel far.
Store and product listing creation
A product listing is what the customer sees when they search for an item. This is one advantage in ecommerce meant for the seller. This online business plus point is that you can personalise your product listing after creating them. The best part? Creating a listing takes very little time, all you require is your product name or codes like EAN, UPC, ISBN or ASIN.
Sellers can add many images, a description, product category, price, shipping fee and delivery date. So, in just one step you can tell the customer many things about the item. Creating your listing shows the buyers what you have.
One of the biggest advantages of ecommerce to business that keep sellers interested in online selling is cost reduction. Many sellers have to pay lots to maintain their physical store. They may need to pay extra up front costs like rent, repairs, store design, inventory etc. In many cases, even after investing in services, stock, maintenance and workforce, sellers don’t receive desired profits and ROI .
How this is different with online stores? – With an ecommerce store, a seller can reduce how much is spent in store upkeep. An ecommerce store is affordable and requires less investment when compared with a physical store.
This is also a good opportunity for individual and small scale sellers who want to earn an income but don’t have the required start-up capital.
Product and price comparison
In ecommerce, sellers can compare the products using tools or on their own. This gives them a good idea of product alternatives available, the standard rates, if a product need is unfulfilled.
Comparison is faster online and covers many products – It helps to save time when making this comparison, as all details are available on the shopping site. In a physical store, sellers may not be able get access to so many details –they only have better knowledge about their own inventory.
This is one more benefit for the customer too. When people see many items ready for purchase, they feel more confident about spending.
How do ECommerce websites work?
eCommerce websites work through a series of steps, utilizing website code, the database, and 3rd party applications such as a payment processor or payment gateway.
eCommerce websites use SSL certificates to secure and encrypt all transferred data. Sensitive data, including credit card information, should never be stored within the website’s database unless the website adheres to all mandated regulations, including PCI Compliance.