What exactly is e-commerce?

In this blog we provide an answer in human language to the questions “What exactly is e-commerce?”.

E-commerce is a way for businesses of all sizes to conduct business online, sell products or services, collect payments, and provide support to customers. E-commerce is simply a way of doing business on the internet. You can use it to sell products (both physical and digital) and some services. It is suitable for any kind of company: from an independent entrepreneur to a large multinational. However, you have to remember that e-commerce isn’t all about buying and selling. This is about the whole process: finding customers, meeting and supporting the customer, before, during and after the sale.

E-COMMERCE WEBSITES

An e-commerce business is usually based on a website where products or services can be viewed, which can then be selected and purchased there. Usually these sites are custom made in Magento by web designers, but this can be a more expensive option. As an alternative, there are therefore free or low-cost, off-the-shelf e-commerce systems that can be adapted to the needs of the seller or broker. WooCommerce is often used here.

E-COMMERCE IN DIFFERENT FIELDS

• Business to business (B2B)
• Business to consumer (B2C)
• Consumer-to-consumer (C2C)

CLICKS AND MORTAR

Some e-commerce companies only trade online, while others also have physical stores where customers can purchase products. The first business model is called pure click, the second clicks and bricks or clicks and mortar.

Almost all major stores are now click and mortar and have physical stores in addition to an e-commerce function.

ADVANTAGES OF E-COMMERCE OVER TRADITIONAL TRADE

• E-commerce is not location specific
• Webshops do not have opening hours
• Webshops are more efficient
• Ability to enter a wider range
• Opportunities for direct online marketing
• Anticipate: More than ever, there is a need to react quickly to competitor actions. An e-commerce initiative is never finished. Competitive advantage is created by anticipation.

BENEFITS FOR THE BUSINESS

• Making a profit from online sales
• Building customer relationships
• Efficiency: quotations, information requests no longer have to go through the Post, but can be delivered immediately online within two seconds.
• Cost reduction: e-commerce can lead to a reduction in marketing, communication, inventory, advertising, transport and service costs. Because trade between producer and consumer can take place directly, distribution costs can be reduced.

CONSUMER BENEFITS

• Customer friendliness: the ease of making a purchase on the internet. E-commerce makes it possible to save time and reduce costs when making purchases.
• Price: the increased price competition on the Internet between traders and the abundance of information available to consumers often lead to a lower price compared to the offers in traditional shops.
• Product choice: there is an extensive product selection on the internet. In this way, all products offered are available to the consumer in no time.
• Mobility: there is now the possibility for consumers to make purchases from home.

E-COMMERCE AND PAYMENTS

Ecommerce customers usually want to pay for products or services with their credit or debit card. Such a feature wouldn’t be a problem for existing businesses, but it can be tricky for novice ecommerce businesses with no experience. For such cases, direct online payment methods such as PayPal are available. They are easy to set up and are used in many places, but they cost more than direct payments via debit or credit card.

TYPES OF PRODUCTS SOLD WITH E-COMMERCE

Digital products such as software, music/video and more expensive web content are usually delivered electronically, as a download. However, most forms of e-commerce involve selling physical products that have to be brought from the seller to the buyer. That is why efficient packaging, transport and delivery methods are an important part of e-commerce, especially when it comes to fragile or expensive products.

E-COMMERCE AND CUSTOMER SERVICE

Customer service is essential to be successful with e-commerce. Internet users expect that they will find information quickly and that questions will also be answered quickly. If not, they will soon leave for another site. Even after the sale, problems or questions must be dealt with efficiently. Efficient sales and good support are two important elements in building long-term customer relationships. The most successful companies have customers who feel valued, and therefore reward the company with customer loyalty.