The Advantages Of Electronic Commerce

When well respected consultancies start to talk about Electronic commerce making up almost fifty percent of total retail sales within a few short years then it has to be more than just a trend. Electronic commerce is set to have an impact on our daily lives such as mankind has not experienced since the invention of the wheel.

But just what are its major advantages and why are they so important?

Overcoming geographical limitations has to be one of the greatest advantages of this type of trading. When a customer can not only buy online at the click of a mouse, but review what he or she is going to buy before they make a choice, and then have it delivered once their choice is made it is a very compelling argument for what some are predicting will be the death of the high street. Shopping online not only saves the high cost of fuel and parking charges when people sally forth to their local mall or shopping centre, it gives people a huge bonus in all the extra “free” or leisure time they then have at their disposal. And in today’s world is a very prized possession indeed!

The second major advantage for any business is that anyone selling practically any type of goods or services can attract customers they would never previously have dreamed of having. These customers again will be attracted to look on the internet for what they want and they can be anywhere in the world. Someone can set up an online store and compete alongside the retail giants whose size brings them little or no advantage in the marketplace. To those who say that an established brand is important, we would argue that the small independent online retailer actually has a distinct advantage if they set up their business to appear more “personal” as many people prefer to deal with individuals rather than large “faceless” corporations. And that translates into the third advantage in that whether you are a multi million pound or dollar corporation or an online retailer with just a few thousand a month turnover, because there are so many ways to use free methods to find customers on the internet, the big corporations cannot use their size to trade at a lower cost. In fact just the opposite may well apply.

The cost of acquiring customers by using so many of the methods on the internet, such as pay per click, social media, organic search are almost exactly the same whatever size of organisation you are. Time then to think seriously about starting your own online business and joining the retail revolution. One not of caution however. Find a good company who will support you whilst you are doing it as there is a lot to learn!

Electronic Commerce (E-Commerce)

Electronic commerce (or E-commerce) means the buying or selling of products or services over the Internet. The amount of successful E-commerce transactions have grown exponentially since the widespread use of the Internet.

Electronic commerce has changed dramatically over the last 30 years. Originally, the term “electronic commerce” was coined to mean the “facilitation of commercial transactions electronically”. Technology like “Electronic Funds Transfer” (EFT) was introduced in the late 1970s to enable businesses to send commercial documents like purchase orders electronically. Credit cards and ATMs (introduced and accepted in the 1980s) were also forms of e-commerce.

Many economic experts forecasted that E-commerce would become a major economic sector when the Internet became widespread in the early 1990s. During the “Dot com” era, E-commerce came to encompass the purchase of goods and services via the Internet, usually with secure connections and electronic payment services such as credit card payment authorizations.

Almost all purely E-commerce companies collapsed during the “dot-com” bubble-burst in 2000 and 2001. But many “brick-and-mortar” retailers began to add e-commerce capabilities to their Web sites. For example, a traditional supermarket chain, Safeway, started e-commerce subsidiaries through which consumers could order groceries online.

The emergence of E-commerce also significantly increased the opportunities in the selling of many types of goods; many small home-based businesses are able to use the Internet to sell their goods or services. Wish to buy something? Visit eBay.com (an online auction site that provides a platform for selling or buying merchandise). Wish to announce a garage sale? Visit Ablewise.com (a popular online classifieds site that provides services for both free and paid advertising) and place an advertisement with them. With the E-commerce scene as it is today, there is almost nothing that you are not able to find and buy/sell over the Internet.

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.