June 28, 2017

What is Ecommerce

Electronic commerce or ecommerce is defined as the buying of selling over the Internet.  This is one of the biggest advancements in terms of marketing because sellers can go online to market retail clothes, music, electronic books, services, auction, and more. It allows businesses and individuals to showcase their products without going through the traditional method of selling. Distance is no longer an issue to find a suitable market.

ecommerce web hosting for beginnersOver the years, ecommerce has grown and is continuously doing so. This guide will go through some of the basic information regarding Ecommerce for those who are businessmen who are looking to expand their market and horizons.

Reasons to Get Involved

Let’s take a look in to the advantages of being involved in ecommerce.

  • Access to buying and selling 24/7. Who wouldn’t want to put their business on the web that works for them while they sleep?
  • No barriers. With Ecommerce, distance, time, language, and more is not a hindrance. Anyone all over the world can have access to see and learn about your products and services.
  • Your company is online. Whether you have a physical company on land or not, the internet gives you the opportunity to establish your company and make a name for yourself.
  • No capital needed. Unlike the traditional method of selling, there is no need for businesses to provide capital to show their products. There are very little operational costs.

How It Works

Read on below to learn how ecommerce works online.

  • Products Need to be Sold

The internet has made it possible to sell just about anything online. A variety of products from baby’s clothing, car insurance, home décor, electronic books, and more can be found. Since there are people selling, there are also people willing to buy through these online stores.

  • Accepting Orders

When someone wants to buy things on your website, a shopping cart which is software that is used to accept orders is used. Not only will this shopping cart be used to place orders but it also has the responsibility of computing taxes, deducting discounts, presenting the option for delivery, and more. When all the goods are in the cart and computed, it is time to pay.

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  • Payment Gateway and Mechanisms

It is very easy to accept credit cards online these days.  The transferring of money is done through a payment gateway. The first step is that the buyer will be asked to select his chosen method of payment. Then, he will be asked to encode his personal identification details such as name, address, and credit card numbers. The customer is then checked by the system. Once goods are paid for, it’s time to ship them.

  • Product Delivery

One of the challenging aspects of ecommerce is product delivery. Every business should do their best in sending the right product in the promised amount of time.

  • Customer Inquiries

Customers base their knowledge about the product on the information given as well as pictures posted on the site. Some of them may have additional inquiries regarding the product. Thus, it is important for those involved in Ecommerce to provide customer service that will address their concerns.

  • Reverse Logistics

Reverse logistics happens when a customer sends a product back to the seller. This can happen for a number of reasons such as a defected product or wrong product sent. Businesses must be ready to handle such a situation as this.

A recent study indicates that at least 78% of people look to the internet to research products and check their emails (even if it is on the phone). A company’s blog can get as much as 57% of customers and those that use the blog are able to get 55% traffic on their web. These statistics may encourage you to try putting up your business online. It takes some skill, time, and a few monetary investments. But all of these may be small compared to what a business can gain in return. Look over the advantages stated above and the statistics that back it up.

This Ecommerce guide has given you a background its workings and now you have to take the time to determine whether you would like to start one for your business.

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