MEANING OF E-COMMERCE FOR BEGINNERS
Electronic commerce (e-commerce) refers to companies and individuals that buy and sell goods and services over the Internet. E-commerce operates in different types of market segments and can be conducted over computers, tablets, smartphones, and other smart devices.
As noted above, e-commerce is the process of buying and selling tangible products and services online. It involves more than one party along with the exchange of data or currency to process a transaction.
E-commerce has helped businesses gain access to and establish a wider market presence by providing cheaper and more efficient distribution channels for their products or services.
E-commerce has changed the way people shop and consume products and services. More and more people are turning to their computers and smart devices to order goods, which can easily be delivered to their homes. As such, it has disrupted the retail landscape. Amazon and ALIBABA have gained considerable popularity, forcing traditional retailers to make changes to the way they do business.
Most of us have shopped online for something at some point, which means we've taken part in e-commerce. So, it goes without saying that e-commerce is everywhere. But very few people may know that e-commerce has a history that goes back-to-back before the internet began.
E-commerce actually goes back to the 1960s when companies used an electronic system called the Electronic Data Interchange to facilitate the transfer of documents. It wasn't until 1994 that the very first transaction took place. This involved the sale of a CD between friends through an online retail website called NetMarket.
The industry has gone through so many changes since then, resulting in a great deal of evolution. Traditional brick-and-mortar retailers were forced to embrace new technology to stay afloat as companies like Alibaba, Amazon, eBay, and Etsy became household names. These companies created a virtual marketplace for goods and services that consumers can easily access.
E-commerce offers consumers the following advantages:
- CONVENIENCE: E-commerce can occur 24 hours a day, seven days a week. Although eCommerce may take a lot of work, it is still possible to generate sales as you sleep or earn revenue while you are away from your store.
- INCREASED SELECTION: Many stores offer a wider array of products online than they carry in their brick-and-mortar counterparts. And many stores that solely exist online may offer consumers exclusive inventory that is unavailable elsewhere.
- POTENTIALLY LOWER START-UP COST: E-commerce companies may require a warehouse or manufacturing site, but they usually don't need a physical storefront. The cost to operate digitally is often less expensive than needing to pay rent, insurance, building maintenance, and property taxes.
- INTERNATIONAL SALES: As long as an e-commerce store can ship to the customer, an e-commerce company can sell to anyone in the world and isn't limited by physical geography.
- EASIER TO RETARGET CUSTOMERS: as customers browse a digital storefront, it is easier to entice their attention towards placed advertisements, directed marketing campaigns, or pop-ups specifically aimed at a purpose.
Make sure you do your research before you start your business. Figure out what products and services you're going to sell and look into the market, target audience, competition, and expected costs.
Next, come up with a name, choose a business structure, and get the necessary documentation (taxpayer numbers, licenses, and permits if they apply).
Before you start selling, decide on a platform and design your website (or have someone do it for you).
Remember to keep everything simple at the beginning and make sure you use as many channels as you can to market your business so it can grow.
An e-commerce website is any site that allows you to buy and sell products and services online. Companies like Amazon and Alibaba are examples of e-commerce websites.
E-commerce involves the purchase and sale of goods and services online and is actually just one part of e-business. An e-business involves the entire process of running a company online. Put simply, it's all of the activity that takes place with an online business.
Dollar Shave Club offers customers personal grooming, health, and beauty products. Customers can opt for what product(s) they want to be shipped to them and can sign up for long-term memberships to have products sent to them regularly. Dollar Shave Club procures goods in bulk from other companies, then bundles those products, maintains membership subscriptions, and markets the products.
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