E-commerce (electronic commerce) the buying and selling of goods and services, or the transfer of funds or data, over an electronic network, is primarily the Internet. This business transaction is either business to business (B2B), business to consumer (B2C), consumer to consumer or consumer to business. The terms e-commerce and e-business are often discussed. The term e-tel is also sometimes used to refer to transactions that make online retail purchases.
Over the past decade, the widespread use of e-commerce platforms such as Amazon and eBay has led to a significant increase in online retail. In 2020, e-commerce accounted for 18-19% of total retail sales.
History of E-commerce
E-commerce has a rich history, dating back to the early electronic data transactions in the 1960s and the first online retail transaction in 1994 to the popularity of e-commerce giants such as Amazon and eBay. Looking at some of the historic events in the history of e-commerce, it’s easy to understand why it’s a good time for business leaders to take advantage of the thousands of opportunities that online retail provides.
The rise of Amazon and eBay in the 1990s revolutionized the e-commerce industry. Consumers can now buy unlimited quantities of items from e-commerce-enabled e-tellers, ordinary brick and mortar stores. Now, almost all retailers are integrating online business practices into their business models.
How does E-commerce work?
E-commerce runs through the Internet, where consumers can access an online store to browse, and order products or services from their devices.
As soon as the order is placed, the customer’s web browser will interact back and forth with the server hosting the online store website. The order data is then sent to a central computer known as the Order Manager – then sent to the database that manages the inventory level, a merchant system that provides payment information. Manages (using applications such as PayPal), and a bank computer. Before circling the order manager. Ensure that in-store inventory and customer funds are sufficient to process the order. Once the order is confirmed, the order manager will notify the store’s web server, which will then display a message informing the customer that their order has been successfully processed. The order manager will then send the order data to the warehouse or completion department, so that the product or service can be successfully shipped to the customer. At this point, solid and / or digital products can be sent to a user, or a service can be accessed.
E-commerce transaction hosting platforms may include online marketers whose sellers can easily sign up, such as Amazon.com; As a service (SaaS) tools that allow users to ‘rent’ the infrastructure of an online store. Or open source tools to use in-house development for company management.
Types of E-Commerce
An e-commerce platform is software that enables the business process of buying and selling on the Internet.
An e-commerce platform needs a search feature that lets customers find a specific product, a basket feature that allows them to handle their order, and a payment feature.
A company may choose to use an e-commerce solution hosted by an e-commerce provider such as Shop Feed and Cloud, or host a custom e-commerce platform on its premises.
Companies that make mistakes include not knowing their goals in advance, not choosing the best e-commerce platform for their needs, and not paying attention to security regulations.
In the future, new devices such as IoT, Voice, and Virtual Reality (VR) will change the landscape of e-commerce stores.
There are some examples of E-commerce platforms: