• 4 - Jan 15, 2020

What is meant by Ecommerce?

Ecommerce is a type of business model that involves buying and selling of products/services across the Internet.

Ecommerce, also written as e-commerce, is defined as anything that involves the purchase and sale of goods or services over the Internet. Have you ever purchased a product online from Amazon? Perhaps you pay a monthly service fee for a subscription to Netflix or Hulu. These transactions are part of ecommerce, and they serve the online community and generate revenue for the world of the Internet.

Ecommerce has been around since as early as the 1960s, with the introduction of value added networks (VANs). By the 1990s, Internet ecommerce was a new and booming industry. It completely revolutionized the way the world does business with each other, making it very convenient for customers to shop with this new type of outlet.

Ecommerce on Mobile Devices

As mobile devices become more popular and advanced, a more specific ecommerce market has developed. Mobile ecommerce drives revenue based off of app purchases and downloads. There are also new and convenient ways for a consumer to easily purchase goods and services in person using a variety of different online payment methods through their mobile device. Payment services such as Paypal and Venmo have made it easy for people to purchase goods and pay each other without having to reach for their wallet.

Advantages of Ecommerce

There are many reasons why the rise of ecommerce has been beneficial to the global market as a whole. Electronic commerce is a great asset for the online and global community because:

  • There are no longer any distance limitations – Consumers can pay anyone from anywhere, at any time. It is possible to purchase an item from an eBay seller in China and have it shipped to Canada in no time. Electronic purchases are typically instantaneous, with very little processing time.
  • Online stores and shopping carts are popular – Customers are finding it more and more convenient to use online shopping carts to check out. This is also easier for businesses, as it creates the opportunity for a virtual storefront rather than a physical one. It can reduce the cost of space rent for businesses that sell goods as well.
  • E-business plans are a thing of the present – almost every successful business and organization under the Sun participates in online commerce, making it an integral part of planning for an advertising campaign or establishing a business model.

Things to Consider

When setting up an ecommerce venue for a mobile app or online business, it is important that the following components are included:

  • An understanding of ecommerce guidelines – While the limits may seem endless, there are a few dos and don’ts of ecommerce that can help keep your business as a success.
  • A working shopping cart – An online shopping cart is a unique operating system that needs to be comprehensive and functional.
  • A method of accepting payments – Several software options are available, like PayPal and other online merchants. This is the only way for your web application to process payments from a customer.

Remember that ecommerce is a successful and booming industry, but that does not guarantee overnight success. It takes research and time to establish a good ecommerce model that can keep a website or mobile application afloat.