What Is A ECommerce?

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Electronic commerce or e-commerce is a business model that allows companies and people to buy and sell stuff over the internet (sometimes written as eCommerce). In all four of the following main business segments, e-commerce works:

  • Business to business
  • Business to consumer
  • Consumer to consumer
  • Consumer to business

E-commerce, which can be carried out on laptops, tablets, or smartphones, can be called a digital equivalent of shopping for mail-order catalogues. Via e-commerce purchases, including books, music, plane tickets, and financial services such as stock investing and online banking, almost every imaginable product and service is available. As such, it is considered a technology which is very disruptive.

Key Takeaways

  • E-commerce is the buying and selling of goods and services over the internet.
  • E-commerce can be a substitute for brick-and-mortar stores, though some businesses choose to maintain both.
  • Almost anything can be purchased through e-commerce today.

Understanding Electronic Commerce (e-commerce)

Through offering cheaper and more reliable delivery platforms for their goods or services, e-commerce has helped companies develop a broader market presence. The mass retailer Target, for instance, has added an online shop to its brick-and - mortar presence that allows consumers to buy everything from clothing to coffee makers to toothpaste to action figures.

By comparison, with an e-commerce - based model of online sales and product distribution, Amazon launched its company. Not to be outdone, through their own personal websites, individual sellers have increasingly engaged in e-commerce transactions. Finally, digital markets such as eBay or Etsy act as portals that put together multitudes of buyers and sellers to transact business.

The Advantages and Disadvantages of Electronic Commerce

E-commerce offers consumers the following advantages:

  • Convenience - E-commerce happens seven days a week, 24 hours a day.
  • Increased selection - Many shops sell a broader variety of goods online than their brick-and - mortar counterparts do. And several stores that only operate online through sell exclusive merchandise to customers that is not available elsewhere.

E-commerce carries the following disadvantages:

  • Limited customer service - If you are shopping for a laptop online, you do not actually ask an employee to show the functionality of a specific model in person. And while some websites allow you to talk with a member of staff online, this is not a common practise.
  • Lack of instant gratification - You have to wait for it to be delivered to your home or office when you purchase an item online. But, by providing same-day delivery as a premium option for select items, retailers such as Amazon make the waiting game a little less difficult.
  • Inability to touch products - Online photos do not inherently convey the entire storey of an object, so transactions from e-commerce can be unsatisfactory if the items purchased do not meet customer standards. Case in point: a clothing item could be made of shoddier fabric than suggested by its online image.
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