Electronic Commerce – Why Sell Online?

Electronic commerce or more popularly known as e-commerce is becoming very popular nowadays due to a number of factors. Not only will you benefit the money you earn from selling products and services online, you are working right at the comfort of your home. The main reason why a lot of people are into e-commerce is because of the convenience it provides to both the buyer and the seller. As a matter of fact, there are a lot of people who are joining the online community that makes more opportunities for those who want to buy and sell products. But, with larger community, this makes competition harder to come by. For you to survive such tough competition, you need to learn a few basic tricks to help you float around the vast ocean of competition filled with sharks. There are other disadvantages that you need to watch out for and if you do not pay close attention to it, you will end up losing everything that you have worked for.

Selling over the internet has lots of benefits. One such benefit is that the products you sell online are rather cheap than those you find on real stores. The thing with products on real stores is that they add their profit plus the taxes you pay for purchasing such product make it very expensive. Whereas in e-commerce, the price is almost half and all you need to pay other than the price is the fee from your transactions or for your shipment.

Combined with creative marketing strategies, e-commerce is a force to be reckon with. This makes the internet a good breeding ground for small time businesses to grow. A good example to that is Amazon. The website offered books and has become one of the world’s largest online retail store. They even tap in to small online businessmen to help them promote their products and make sales. This is very advantageous for small time businessmen. The website hosts a wide array of business for you to transact.

There are also different reasons why you might want to start on e-commerce and begin selling online. For small businessmen, the economy has been bad and most of them have turned to e-commerce to save their businesses and still earn money to help them get by. Since you are working right at the comfort of your home and you are not maintaining any employees, expenses are rather low compared to real time commerce. You do not have to pay for any employees thus, you have all the money that you earn.

E-commerce can help you inflate your customers. You are no longer aiming for a local arena. Since the internet connects us all, you are now having possible customers from the other side of the globe. Increasing the amount of people as your probable customers also increases your probable sale. It is a win-win situation for both you and your clients. You get to sell your products and have lower expenses.

Electronic Commerce Commonly Known As E-Commerce

The process of buying and selling of products or services online is termed as Electronic commerce commonly known as E-Commerce. Developing, marketing, selling, delivering, servicing and paying everything can be under this process. Because of the extensive usage of internet now days the quantity of trade that is done online has increased. Commerce is used in electronic funds transfer, supply chain management, internet marketing, online transaction processing, electronic data interchange, inventory management systems and automated data collection. World Wide Web is the major tool and is used at least once in the transaction and e-mail, mobile devices and telephones are also widely used.

Most of the e-commerce is done in virtual form but also does transportation of physical products. E-tailers are online retailers and e-tail is retail and World Wide Web consists of almost all big retailers. There are different kinds of e-commerce. E-Commerce between two businesses is called Business to Business or B2B which can be either open to all or for specific qualifiers. The e-commerce between businesses and consumers is termed as Business to consumer or B2C. Here the buyer is directly in contact with the business like online shopping. There is no presence of intermediary service in most of the cases. E-commerce involves the sales and the transfer of data to enable the financial transactions of businesses.

Some applications where e-commerce is used are Document automation, domestic and international payment systems, group buying, instant messaging, enterprise content management, teleconferencing, electronic tickets, etc. Data integrity and security are burning issues in electronic commerce.

International trends:

As the usage of internet has increased drastically the business models also changed to the same extent with the help of e-commerce and are not confined to a certain country. This has increased the competition for advertising industry to grab the interests of the customers. If we take the developing countries china is the fastest growing economy in this field. They have made the consumers comfortable shopping online. E-commerce has emerged as a vital tool to hold the customers and to sell worldwide.

Effect of E-commerce on markets and retailers:

The internet has facilitated the customers to do a product research and find the best price for any product online there by created a price competition among various companies. The industry structure of book shops and travel agencies has been influenced by e-commerce because of the increased online shopping. This helped the larger companies to grow as they can give best prices which can be afforded by smaller companies.

Distribution:

There are two channels for distribution which are ‘pure click’ and ‘brick and click’. Many companies have shifted to these two channel systems.

Pure Click: These companies do not exist as a firm. They purely work through the website. Such companies should maintain their e-commerce websites with utmost care as the customer service is of great preference here.

Brick and Click: These companies already exist as a firm and they add a website for online business. These companies doubted initially that the relationship status with their offline retailers, agents or their own stores would be in peril but finally internet found its way to their distribution channels after witnessing the business generated by their online counterparts.

What Is Electronic Commerce?

Electronic commerce or ecommerce is any kind of business transaction that is done over the internet that involves transferring information and goods. It covers a whole array of businesses from basic retail stores to highly specialized shops in music or for animals. It is one of the most important characteristics of the internet, and is highly useful in the world of business and marketing.

By utilizing ecommerce, you can transfer money or goods without time barriers and this is very convenient in this fast paced world that we live in. Ecommerce has expanded very rapidly over the last few years and doesn’t show any sign of letting up. It is expected for the differences between conventional and electronic barriers to become more blurred as ecommerce progresses as a form of transfer of funds and goods.
Business to business ecommerce is a bit different. It refers to electronic transfers between businesses as opposed to between a business and a consumer. There are many advantages to carrying out transfers electronically rather than traditional methods. Ecommerce has also led to more people doing business online and setting up electronic market places to do business.

If you are not aware of the basic principles of ecommerce setting up an online store can prove to be very challenging. You must thoroughly research the principles of ecommerce before opening up an online store. This is crucial to your overall ecommerce success. There are some things you will need to have before setting up an online market. First of all you will need shopping cart software. A shopping cart is software that allows your customers to purchase goods through your online store.

Also before starting your online business, it is wise to find a niche that is in demand. You will want to find a product that customers have trouble finding anywhere else such as in malls or department stores. You will also need to be sure that your website is ecommerce enabled. Another important factor is to consider shipping and the cost of shipping. All of these aspects play an important role in your success.

Lastly, you will need a way in which to receive payment online. For this you will need an online merchant account. If you take these steps in setting up your online ecommerce business you will have a greater chance at success for your company. If you do the proper research and learn the principles behind ecommerce you will have a flourishing online business in no time at all.