Gone are the days when people used to spare a good amount of their time to shop for the things they need. Not only was shopping daunting back in the days, but it also was a time-consuming thing. Gladly, the paradigm has shifted, and shopping has become a whole lot easier. All thanks to the advent of ecommerce!
If you are reading this blog, there is a chance that you might be a little ambiguous about ecommerce and how it works. If that is the case, then there is nothing to worry about because we are here to help.
What we will cover in this blog:
- What is e-commerce?
- How do companies conduct e-commerce business?
- What are the popular e-commerce websites?
So stick with us and keep on reading to understand ecommerce. Let us dive in!
So What Exactly Is Ecommerce?
Electronic commerce, commonly known as ecommerce, is a business model that involves buying and selling goods over the internet. In simple terms, we can say that e-commerce is an online transaction of services and goods.
It lets companies display their products on the internet while providing customers with an opportunity to purchase those products by sitting in the comfort of their homes.
Here and now, a question might have crossed your mind: is e-commerce the same as e-business? Well, let us clear the air that both are two different terms and can not be used interchangeably. Ecommerce refers to the selling and purchasing of goods through the means of the internet, while e-business involves aspects of operating an online business.
Now here comes the million-dollar question, how does ecommerce work?
How Does It Work?
In order to display the products or services, companies create their e-commerce stores or ecommerce sites, which are exactly like a shop or an outlet but a virtual one. People all over the globe can access these stores by using the internet.
While we may say that e-commerce is nothing like the traditional way of shopping, standards are pretty much the same. Customers visit these stores, search for the item they want to buy, and make a purchase.
But wait, how is it different then?
The difference is that access to an e-commerce store is at your fingertips regardless of your geographical location. If you live in one part of the world, for instance, America, and want to buy something from Asia, it is no longer a problem with ecommerce(unless there is a shipping restriction in action).
There are mainly three stages of ecommerce selling:
Accept The Order
When a customer places an order on your ecommerce store, you(a seller) get a notification that an order has been placed. This is the first stage of your electronic commerce selling process.
Process The Order
After closing the deal, the next thing you need to do is to process the placed order. In this stage, the order gets packed and delivered to the port or the rider in order to be shipped/delivered.
Ship The Order
The final thing you need to do is ship the order that you have received promptly. Prompt delivery of products ensures repeat business and helps in building a solid customer base.
Moreover, payment for e-commerce buying is also made through the internet. Ecommerce companies set up a checkout process for this sole purpose where customers, at the end of the buying process, pay for the products they have bought.
Last but not least, the market segments in which ecommerce operates are:
- B2B(Business To Business)
- C2C(Consumer To Consumer)
- B2C(Business To Consumer)
- C2B(Consumer To Business)
Some Of The Famous Ecommerce Sites
Amazon is one of the top e-commerce websites in the world and the most famous one ranking wise. It was founded by Jeff Bezos(one of the richest men in the world today) back in 1994.
Amazon has been selling high-quality products for over two decades now. You can find a massive range of goods on Amazon, be it household items, sports goods, electronic devices, you name it. In terms of revenue, it is the largest ecommerce company on the face of the earth.
Ebay, founded by Pierre Omidyar in 1995, is counted among the giants of ecommerce.
The best thing about eBay is that it is not only a suitable platform for B2C(Business To Customer) sales. But it also facilitates its users by providing a C2C(Customer To Customer) feature, where the buyers can sell their used or old items.
It is impossible to overlook Alibaba while penning down the top e-commerce sites in the world. It is the creation of one of China’s richest men, Jack Ma. This site is hugely popular, especially in Asian countries.
This ecommerce platform provides buyers with a tremendous opportunity to buy products at affordable rates. Alibaba allows its users to compare products and enable them to choose the best. Also, the checkout process is quite fast and ensures secure payment.
E-commerce is great news for the people who want to buy quality goods while sitting in the comfort of their couch. Also, it enables sellers to skyrocket their sales and earn a fair share of the revenue.
Today, there are more than 2.14 billion digital buyers, which shows how popular the ecommerce industry is and how rapidly it is growing. Near is the time when ecommerce will completely dominate the market share.
So if you are looking to invest in an e-commerce store, now is the time to get started.
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