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What Is eCommerce?
eCommerce websites are the digital portals (i.e. virtual storefronts) that facilitate eCommerce.eCommerce (also known as electronic commerce) is the process of buying and selling products or services, making money transfers, and transferring data over an electronic medium (Internet). This network allows people to do business without the constraint of distance and time.
eCommerce Business Models:
Most eCommerce takes place on an eCommerce website, which acts as a virtual storefront wherein transactions and commerce can take place. eCommerce can manifest in many different forms:
Retail: Products are sold by businesses directly to an end-level consumer without intermediary involvement.
Wholesale: Products are sold in bulk, either directly to the consumer, or to wholesalers/distributors.
Dropshipping: Products are sold online, but shipped directly to the consumer by a third party that manages inventory, order fulfillment, and other logistics.
Crowdfunding: Consumers pool money, often in advance of an anticipated product coming to market, to raise startup capital, leverage buying power, reduce product costs, etc.
Subscription: Recurring purchases for products or services are automated until the subscriber chooses to cancel or alter their subscription level.
Digital Products: Most people think about tangible products, but many eCommerce transactions include the sale of digital products, such as music, movies, audio and video files, templates, software, etc.)
Services: Skilled labor or services can be purchased digitally, such as hiring an Uber driver or paying someone to run your errands online.
Types Of eCommerce Businesses
There are various types of eCommerce business options that you can choose from based on your preferences, capital, and online business model. For different businesses, you have to implement various techniques and strategies. Some of the favorite online companies include:
B2B businesses
B2C businesses
Affiliate marketing business
Google Adwords marketing
Online auction selling
Web marketing
How Does eCommerce Businesses Function?
Online business works pretty much on the same principles as an offline/retail store does. On a broader scale, the whole eCommerce process can be broken down into three main components or work processes:
Receiving Orders
This is the first step where customers place the order through the eCommerce platform (website or an online portal), and the seller makes a note of it.
Processing Order Information
The second step where all the details of the order being processed and completed. It is now ready for delivery.
Shipping
The last step wherein the delivery process is carried out. All the logistics components play a significant role in this step to ensure timely delivery to the customer.
If you get the basics right and conduct your eCommerce business in the right way, you will surely enjoy good profits. Always remember that proper business planning and implementation are the keys to a successful online store.
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