Ecommerce - what is it?
So, you might’ve heard the term ‘e-commerce’ but what exactly is it? E-commerce is basically the transmission of data over the internet usually in the form of buying and selling goods. The type of sites that typically use e-commerce are: auction, music, clothing and retail sites. Some examples of e-commerce sites include eBay, Spotify, H&M and Amazon.
If you’re thinking of starting your own business where you sell products online then you’ll be hearing about e-commerce a lot more frequently. You’ll need an ecommerce solution imbedded into your website that takes and processes orders in order to accept payments.
Some advantages of e-commerce stores over traditional physical stores are that you can overcome geographical limitations. With a website, you can target a much wider audience all over the world, whereas with a store you are limited to the location and therefore the amount of people that can visit.
Another advantage is that with an e-commerce website you can visit the virtual store with just a few mouse clicks saving the consumer time and travel cost. A website also remains open 24/7 365 days of the year so this should increase the amount of orders the merchant receives.
There are also some disadvantages. Firstly, you can’t try-before-you-buy, so sometimes ordering online can be risky. You also don’t get the goods immediately so if someone is desperate for goods having a local physical store would be much more convenient.
E-commerce has become so popular (and it’s still on the rise) that it’s obvious to us that the advantages must out way the disadvantages. This is to do with its ability of targeting such a broad range of people, cheap start-up costs and how easy it is to setup that. A lot of companies don’t even bother opening a physical store now or have even been known to close them down!
It’s a great way to get selling products online today!