What is ecommerce and how does it work?
Electronic commerce, better known as ecommerce, to put it simply, means the buying and selling of anything over the internet. There are a variety of ways ecommerce can take place, it can either be through …
– Business to business: Companies that sell to the general public
– Business to consumer: Companies who do sales with each other
– Consumer to consumer: Companies selling to the government
– Consumer to business: Consumers buy and sell amongst each other
Did you know each letter of E-commerce holds a specific meaning?
|E- Exchange||For e-commerce to work, it relies heavily on high speed information and data exchange between all involved parties|
|C- Collaboration and communication||Develops collaborations and communication between suppliers, customers and various other parties|
|O- Opportunities||The number of opportunities are seemingly endless when it comes to e-commerce|
|M- Management||digital technology fosters the management of e-commerce activities|
|M- Maintenance||Websites need to have constant maintenance to keep them running smoothly|
|E- Expansion||Through technology businesses are able to expand to new customers|
|R- Revenue||E-commerce is a way to possibly reduce costs|
|C- Customisation||A unique feature of e-commerce is the ability to customize offers|
|E- Essential||It is essential that businesses provide secure transactions in order to protect any and all client information|
Let’s take a moment to briefly explain how this works. I am sure you are familiar with websites like Amazon and Ebay and the many other sites that are available nowadays. These websites are onlines stores where customers can purchase and or sell items through their electronic device and have it delivered right to their home or the home of the purchaser. It is simple, all you have to do is go to the website, browse through it a little bit, to find what you like and then eventually add the items to your cart. Once you have added the items you are going to buy, you check out, which involves entering your shipping information as well as payment information. That is that, that’s all, with a few simple clicks you have now completed your order.
If you are the person selling products online, your job is a tad bit different than that of the buyer. It still is an easy process, it just involves different steps. For you the seller, you need to upload pictures of what it is you are selling accompanied by descriptions and prices.
Products that are sold online are not only limited to apparel, there are numerous items that can be sold online. Some examples of e-commerce products: digital products (ebooks, courses, templates) subscriptions as well as different types of services. Almost anything that can be sold in a retail store can also be sold online.
Benefits of buying online
When it comes to e-commerce there are many benefits that outnumber those of in store purchases. Some of the many benefits included, but are not limited to:
- Availability- Online sites are open 24/7, allowing customers to shop whenever they please
- Speed- There are no lines, no crowds of people. You can add items to your cart, check them out and be done shopping in a matter of minutes
- Ability to reach international levels- Many of the online stores have the ability to sell to people across the world, so long as they have access to the site
- Large quantities- Many of the items you buy online are shipped from warehouses where there are large quantities of that specific item. You do not have to worry about a certain item you want being out of stock, it almost never will be if you are shopping online
- More sales opportunities- Thousands of people are active online daily giving websites the power to reach more customers than a store can hold
- Multiple payment methods- Aside from credit and debit cards, people can use Apple pay as well as after pay to pay for online purchases
With anything that has great benefits there are also a few disadvantages that go along with e-commerce.
One of the biggest disadvantages is the fact that you are not able to touch the product before you purchase. This deals a lot with apparel, most people like to try things on before they buy.
Although some websites like Amazon do give you the option to have a trial period and if you are not satisfied you have the ability to return the product.
Take a second to think about everything you just read. Now knowing all of this information, are you more prone to shopping/selling online or shopping/selling in person?
on to keep something for a few days as a trial and if you are not satisfied you have the ability to send it back. Another disadvantage is the need for internet access, no internet equals no online shopping. Technology issues and IT security issues are two others.
Taking a look at the benefits and disadvantages as a whole, there is more good than bad in the world of e-commerce.
Rise of e-commerce
Think back to the beginning of Covid 19 when everyone was quarantined to their homes. What did most people do? They shopped, some even started being online vendors, whether that be for home goods, apparel or food one way or another people were shopping and people were selling. In 2020 alone, consumers spent $791.70 billion on online retail. https://pyxl.com/blog/the-past-present-and-future-of-ecommerce/
Covid 19 forever changed the game of how people want to shop and also how people want to work. Now realizing that online purchases and online sales can be done for nearly anything, there is no desire to buy or sell at in person retail stores.
E-commerce will continue to grow at a rapid rate from here on out. It is projected that sales will reach 7.4 trillions dollars by 2025.
About the author
I grew up in Pennsylvania, not Pittsburgh or Philly, but a small town most people have never heard of called “Carlisle”. In school I was always the girl who would pick writing papers over taking a math class any day which has led me to writing blogs. Within my family I was always the organized one, the one who ran on a schedule. Both of those things combined landed me a job at Creative JC, here in Mexico being a project manager and writer. There is nothing better than doing what you love, where you love. Nobody wake me up from this dream!