E Commerce: Simplified Definition

Ecommerce refers to the activity of buying and selling things over the internet. Generally, this refers to online shopping, but can also refer to other kinds of online transactions. In case of purchase of services, the ecommerce orders are fulfilled electronically without any manual involvement. In the case of the purchase of physical goods, the products are generally shipped to customers through couriers. The payment also happens electronically in most cases, but the merchants may provide other payment options for added convenience. 

E Commerce: Technical Definition

ClickPost defines ecommerce as any transaction undertaken via the internet, including but not limited to the purchase of products and services, where the payment happens primarily but not necessarily through electronic means; and where the entire fulfillment generally also occurs through indirect means such as courier services, in case of physical products.

What is an ecommerce business?

Ecommerce businesses refer to businesses that provide goods or services using the internet. They generally use an ecommerce platform or their own website to sell their products. This can comprise of both businesses that operate exclusively online, and those which operate offline as well as online.

What are the types of ecommerce?

Ecommerce businesses can broadly be divided into 3 types. There are business-to-business (B2B), business-to-consumer (B2C), and consumer-to-consumer (C2C).

B2B ecommerce businesses are business that provides services to other businesses. These include online wholesale businesses and businesses that offer storefronts to online merchants, such as Shopify.

B2C is perhaps the most widespread kind of ecommerce business and refers to selling goods directly to consumers. These businesses have their own online presence through storefronts or their own websites and sell products directly to the end customers.

C2C businesses refer to cases where consumers sell products directly to other consumers. This includes platforms like eBay and Craigslist.

How do I start an ecommerce business?

You can start your ecommerce business by creating your digital presence through tying up with companies like Amazon, creating your own online store through services like Shopify, or creating your own standalone website. The first two options are significantly easier to get started with, and might be appropriate for beginners depending on the exact needs.

What is an ecommerce platform?

An ecommerce platform is a software, service, or website that provides your business a platform to go online. They allow you to manage your website, product pages, and sales and operations. These can range from storefronts like Shopify to online retailers like Amazon.

What is ecommerce marketing?

Ecommerce marketing refers to the promotional activities undertaken to increase visitors to your online store, ultimately resulting in increased sales. Due to the entirely different nature of ecommerce, the requirements of ecommerce marketing are different from traditional marketing methods. Ecommerce marketing also includes specialized marketing like marketing focused on upselling.

What is headless ecommerce?

Headless ecommerce refers to ecommerce stores or platforms where the baked is completely decoupled from the front end. This allows you to manage and deliver content without having to worry about managing the front end and the user interface. This also allows you to modify and add content in real-time without resulting in downtime for your ecommerce business.

What ecommerce platform should I use?

The ecommerce platform you should use for your online business depends entirely on your specific needs. As the different types of ecommerce platforms have their own pros and cons, and there are several options available within each category, it is essential to identify your specific needs. Once your needs are identified, you can go ahead and narrow down the search according to your requirements.

Why ecommerce is important?

Ecommerce is important as it has opened up an entirely new way to do business. Ecommerce is also the space that the new age customers are more familiar with. If you do not have an excellent online presence, you are missing out on the explosive growth offered by ecommerce and an entire category of customers. Ecommerce also allows your business to reach out to customers without geographical limitations and opens up completely new ways of marketing.

 

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