Commerce means exchanging or buying and selling other people’s goods and services, which is what ecommerce as an online version of business has to offer. In fact, it can be said that there are two main types of ecommerce: commercial (or trade) ecommerce and consumer (or shopping) ecommerce.
Commercial ecommerce includes retail commerce, auction sites, corporate supply chain management systems, government sales tax administration systems, banking and credit card transactions, insurance claims processing, healthcare logistics, and air cargo shipping.
Consumer ecommerce involves purchasing products for personal use. Shopping websites such as facebook, yahoo shops, bing stores, and walmart have expanded the number of consumers who consider digital media to be part of their lifestyle. One interesting feature of web-based consumer ecommerce is the ability to combine electronic payment through credit cards or direct bank transfers, with physical delivery of the product via postal service.
There are many components that make up an online business, and it’s important to understand them before you start building your website or opening a shop in order to be successful.
These components include :
A platform to run your business from
Products or services to sell
Marketing - advertising or promotion
Sales mechanisms (tools) such as pages, listings, orders, payment systems, etc.
Administration - including managing people, accounts, contracts and taxes
Backend support functions (reporting, licensing, security, and more)
Also, consider how you want to maintain control over all aspects of your business.
There are several different types of businesses to be aware of when it comes to determining which type of company is best for you. The most common types are those that are ecommerce websites, online blogs, and apps.
It is important to understand that there is not one size fits all method to running a business. Every business has their own way of achieving success – how they spend their time, what activities they do, who they hire and interact with, etc.
There are only good ways to go about your business; there is no ‘right’ way. How can something be right if it doesn't fit into your process? Right here is where many start-ups fail. They try to force an approach that isn't working into a system that won't integrate them or the change that made sense to them.
The more integration there is in a system, the easier it is to maintain control from top down (more people). Systems have systems, and trying to make everything work together will create chaos.
There are many different technologies that can be used to build an online store. The two most common options are using a platform controlled by another company or creating your own from scratch.
There are benefits and drawbacks to both approaches. Using someone else’s platform is easy, but you give up control over the content and design of your website. You also have to rely on their technology and staff to maintain it.
On the other hand, if you create your own site, you get to choose the words and ideas for the site, along with the technology. You also get to set the terms for its maintenance.
However, this may cost money, as there are no fees for using others platforms/technologies. With these costs included, you will still probably pay more than when you use an outside platform.
One of the biggest differences between ecommerce and ebusiness is marketing strategy.
When you run an ecommerce business, you need to create a platform that people can use to buy products from you. In order to do this, you need to have a store where customers can find your goods and prices published for what you sell.
You also need to have software that allows buyers to place orders and pay for them via credit card or direct deposit. The more information you include in your online ordering forms, the better chances you’ll give yourself to convert potential clients into real sales.
In contrast, when you own an ebusiness, you need to advertise to consumers and draw in traffic, otherwise they will never know about your website. You then need to persuade people to click on your home page links, which are called advertisements, to get to the shop pages.
Ecommerce was first established as a way to sell books, but now it has exploded around the world with new ways to generate revenue every year. Websites such as Amazon.com and eBay help businesses attract more customers and spend less money on advertising.
Even if you have an established e-mail list, that is not enough to build a business. You also need easy ways for customers to contact you directly. Most businesses require people to reach out to them via phone or in person to make a purchase. If you do not provide effective ways to communicate with your audience, they will find other sources of communication and commerce.
It is up to you as the owner how much time and energy it takes to manage your email list and business contacts. There are several services that can help you automate part of this process.
These tools can be very helpful, but they cannot replace human interaction. People enjoy buying from companies that understand what it means to be human. By being human, we get to know someone by their name; we feel something for them and their family.
We want to trust these virtual strangers who claim to represent a large corporation that has no real interest in us?