Ecommerce is what it is called when someone buys and sells products and/or services online. “Electronic commerce” is referred to as “eCommerce,” it is the shorter version. These types of transactions are conducted in the following three ways: via mobile device, using a computer, and on a tablet. Though the concept of an eCommerce website consists of purchasing products online, it also includes various other forms, such as online banking, online ticketing, digital downloads, auctions, along with many other transactions one can make through the internet.
The term eCommerce business (rather, eBusiness) is used interchangeably for eCommerce. However, there is a slightly different meaning between the two terms. Online activity which consists of an ongoing business, including businesses which sells their services and/or product online is referred to as an eBusiness. eBusinesses can include the use of online systems and various functions, and here are a few of them: inventory management, email marketing, and human resources.
Let us pretend for a minute that you operate a brick-and-mortar business that provides its customers with makeup consultations. You need to deploy your business’s online appointment system as a reminder and for booking.
You do not have to conduct your transactions digitally; you must use the available online tools for running your business, then you are engaged in an online eBusiness. Ecommerce consists of transactions involving goods and/or services being exchanged online. Ecommerce might include all parts involved in a sale, such as packaging, ordering, and delivery – however, it may just involve one of these processes.
In What Way Does Ecommerce Work?
Have you ever purchased anything online? If so, then you were participating in eCommerce. The same stands if you ever bought a digital subscription or service online. Even though those transactions may not have seemed so complex, but the fact is that each order consists of various processes. When you submit an order, you have taken care of only one step of the puzzle that consists of many more pieces.
Different actions are available for the processing of payments, delivering services and/or goods, and managing orders. To know what the steps are eCommerce must take to work, it can be thought of as the same steps a store would have to take when you purchase something from them. Let us say that you are purchasing a brand-new teapot. First, you will visit a few different shops, browsing their section of kitchen goods. After you have found the teapot you want, you will go up to a register to pay for it. Then the sales clerk places your purchase in a bag where it will be easier to carry.
Ecommerce consists of these basic steps:
First, you look around for what you want, eventually deciding on which product it is you want. Next, you complete your purchase and receive the product packaged (or bagged).
The following is a summary of the steps taken anytime you purchase something from an online eCommerce business:
Step 1. Submitting an Order
You want to purchase a lamp from a retail web store you shop at often. While you are visiting, the server which manages the website of the vendor and your browser will communicate with one another.
Step 2. Order Management
A website server is the one to send the order you submit to the order management solution of the company; this system keeps track of your order from the time you submitted it until it and throughout its shipment. The order management system finds out if what you are wanting is in stock by sending a query to the stock database of the company.
Step 3. Stock Management
Once they find that the lamp you want is in stock, it is the stock database system that sends your order to the merchant system to be processed. On the other hand, should the item be out of stock, it is up to that database to put in an order for a new supply, figure out when the item will be available, and recommend a restocking date.
Step 4. Processing Of Payments
After confirming the stocks availability, your order will be transmitted to the merchant system by the stocks database, and then the credit card will be processed through a firm or bank. The merchant can communicate with your bank’s computer (part of the process) to verify there are enough funds to cover the purchase. Once confirmed, the merchant system authorizes the transaction.
Step 5. Confirmation Of The Order
Once the internal systems of the vendor have confirmed your purchase, you will receive a confirmation notice for the order through the web server of the company. The notice is to let you know that your transaction is complete, as the order has been processed. It is possible that they also send a confirmation through an email or even a text regarding your order; they sometimes will send updates regarding the process of the order or about the shipping.
Step 6. Packaging Of the Order
The retailer’s warehouse receives details of your order from the order management system. With this information, the warehouse knows to have the team pull the item and prepare it for shipment.
Step 7. Order Dispatch
It is the warehouse that is responsible for shipping your order. Sometimes vendors will have a third party (a delivery company) deliver the package to you. It should be clearer to you now how eCommerce is dependent on many different technology solutions to be effective, and it all must work together to be able to manage it all from the time you order to the day it is delivered. Even though technology plays a crucial role in eCommerce, there are a lot of steps that require on-the-spot attention from warehouse and delivery professionals.
Furthermore, although as convenient as it may feel to use an eCommerce website, the truth is that there is a lot of processing going on behind the scenes as it is a necessity to fulfill each one of the transactions. You will never have to handle all the necessary steps by yourself. You can retain support professional or a consultant to help you get your eCommerce business up and going, as well as having them manage all the significant processes.
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There Are Different Kinds of Ecommerce Models
You can always come across a niche, regardless of the business, you operate. In fact, all 4-eCommerce primary types are for business models:
A B2C transaction is where the business sells its services and/or goods to a single customer. For instance, if you bought a pair of new jeans at a retailer, it would be a B2C transaction.
B2B is where all transactions are included when they are between two different businesses. Which may consist of selling products, such as a desktop computer, to customers of the business. Companies can also sell B2B services, like network maintenance for an organization.
C2C is what is happening if one person sells an item or a product etc., to another person. For instance, let us say you placed an ad to sell your truck and sold it directly to somebody using either Facebook or Craigslist Marketplace.
A C2B transaction is where someone online sells a product and/or services to a company or business. When social media influencers obtain a fee for promoting businesses to follow is a type of C2B transaction. Whether you operate a business online or not, it is clear to see all the different possibilities that exist. Another way for someone to get started would be to post a few of your personal things online to sell.
While doing this, you can be learning the fundamentals, and there is only one way to go from there – and that is up!
You also must be looking out for new opportunities to come about for selling your services and/or products online. For instance, should you have a bar and grill which offers an online ordering system and provides a delivery service to those customers? When you give it some thought, marketing your products via businesses over the internet really does make sense.
Do you do bulk orders for teams or catering to events?
Scenario’s such as this, where selling customers prepared meals is the core of the business, and this will not change. However, the internet providing so many different options for people to reach newer audiences. Additionally, newer revenue streams.
The different types of eCommerce merchants
When most people think about eCommerce, they also think about shopping online, including where they are going to have the items shipped to. Just keep in mind that this is not the only business model there is. Many types of eCommerce merchants also get the exchange of products involved, but there are a lot of them that do not.
The following are examples:
Wholesale – Selling in bulk to either a company or another person.
Retail – This is when goods are sold to the consumers directly and without the use of an intermediary.
Crowdfunding – This is money that has been collected for funding product development prior to releasing it to the marketplace.
Drop Shipping – This is when a product has been sold, which includes free shipping and handling through a third party.
Service – This is when someone charges a fee or is compensated in another form for their specific skill set.
Subscription – This is when there is a purchase of services or a product that continues to repeat itself until it has been canceled.
Both physical and digital products can be exchanged through an eCommerce website.
What is the difference between the two?
If it is tangible, it is referred to as a physical product, like an appliance for the kitchen or clothing. In comparison, digital products are something that you cannot touch.
Subscriptions, eBooks, and online courses are referred to as digital products. Although shipping is included in most transactions that occur on an eCommerce website, you can also have the shipping done with another method, such as purchase online, pick up curbside (BOPC), purchase online, and pick up in-store (POPIS) – to receive your items.
If you go with POPIS, it means that you will be going in person to the store and picking up your purchase at the service desk unless they designate another location to do so. Your curbside pickup gives you the choice of waiting in your vehicle until the deliverer arrives. These options will get your products to you quicker, on time it takes to deliver, and save you on the cost of delivery.
Mobile commerce is often referred to as m-commerce or mCommerce. What it does is let people purchase and/or sell their goods and services through their mobile phones and even using a tablet device.
What you should know: by the year 2021, mobile commerce is going to account for at least 72.9% of all the eCommerce markets, and more than half of all mobile phone users will be completing their purchases with the use of their phones. You need to make sure that your eCommerce site will be mobile-ready so that you do not miss out on any of the audience.
When you are ready to get your eCommerce site optimized to use mobile devices, all you must do is use web design principles that will be responsive from the beginning to the end of a person’s mobile shopping experience. Do not forget about scaling photos, as these not only must be set up to fit smaller screens but must also load rapidly. You should also take into consideration using larger buttons, which will make navigation easier.
Users must take the following into consideration for the best experience of mobile commerce
The speed that it takes a page to load is important. Firstly, the page of a page’s speed to load is an important factor in the elements that Google uses for ranking, and secondly, about half of the people who browse the internet (about half of all users) does not wait any more than 3-seconds for a page to load – then they go somewhere else!
Also, the solution for your mobile payment(s) must be 100% secured and simple for users to use.
You also want to create an app that is mobile-friendly and provides an online environment that focuses exclusively on your business.