Everyone is aware of the term E-commerce as the internet has made it possible to get access to the diverse products and services online. Millions of entrepreneurs have carved out a niche of their own in the world of E-commerce. E-commerce in simple terms is nothing but selling products online. It refers to the different forms of business transactions taking place online like online shopping, internet banking, online auctions, online ticketing, etc. Therefore, customers can buy or sell goods or services using the internet platform with ease. The three different types of E-commerce activities based on the participants involved in the transaction are;

  • B2B: Business to Business

  • B2C: Business to Consumer

  • C2C: Consumer to Consumer

History of E-Commerce

In 1960, the Electronic Data Interchange (EDI) on the VANs (Value Added Network) was involved in the introduction of E-commerce. The medium grew exponentially over the years with the popularity and availability of internet access. It attracted online selling giants like Amazon and E-bay to make use of the trend to generate business. Amazon and E-bay started in the 1990s are the world-famous E-commerce sites that enable buying and selling of products. As digital technology has shown tremendous growth, E-commerce has evolved itself to become the most popular market. E-commerce growth is also attributed to the accessibility of mobile devices with an internet connection. Today, social media sites like Facebook and Pinterest drives the E-commerce frenzy. For example, Facebook has a major contribution (85%) in driving sales on E-commerce platform Shopify.

Benefits of E-commerce

The E-commerce has shown tremendous growth with more and more people becoming reliant on the internet to meet their daily needs. The businesses have taken advantage of the situation, which has resulted in the explosive progress of the E-commerce that also has the following advantages;

  • It offers the online store with no geographical constraints as the customers can shop from anywhere in the world. It can overcome the physical restriction imposed by the real-time stores, so customers can get their desired product without additional costs.

  • The online the store is always open, so the customers can shop at the E-commerce business 24x7 without any constraints. It increases the sales opportunities exponentially as it is unrestricted by the working hours.

  • The E-commerce business has low running costs as it requires no sales staff or maintains the appeal of the physical store. The costs incurred for operating the E-commerce business includes only the product storage and warehouse maintenance. Therefore, it reduces the operational costs and improves the chances of acquiring profits by offering good deals and discounts to attract customers.

  • The diverse electronic tools are involved in automating the inventory of the E-commerce businesses that accelerate the ordering process, delivery, and payment methods. Therefore, it can save a huge amount of money in operational costs and inventory management.

  • The E-commerce has access to customer data that provides an opportunity to monitor the customer buying profile and the trends emerging in the markets. It will help in communicating with the customers better and find new customers for the business.

  • In the highly competitive market, running a real-time store (brick-and-mortar) is very difficult as the possibility to scale the business. E-commerce retailers can tap the global market to build a profitable niche business without a huge investment. The E-commerce opens doors to customers around the globe to find their desired product and purchase it.

  • The main advantage of running an E-commerce business is the flexibility to operate from anywhere in the world. As it is not the office job that requires attendance from 9-to-5, people can manage the business within the comforts of their home. It minimizes the suffering of commutation and other frustration to get to the work on time.

E-commerce is convenient, fast, and easy. It will reach a greater height in the future with more people opting online shopping.