Ecommerce or "electronic commerce" is the trading of goods and services online. The internet allows individuals and businesses to buy and sell an increasing amount of physical goods, digital goods, and services electronically.
Some businesses sell exclusively online or use ecommerce to expand the reach of their other distribution channels. Either way, ecommerce is thriving and can be a profitable venture. Let’s dive into the details of how ecommerce works and find out if it’s right for you.
How does E-commerce work?
E-commerce works by connecting sellers with customers and allowing exchanges to take place online. It can work in many different ways and take many forms. Here’s a general overview of how the process can look:- The seller chooses online selling channels, like a website or social media, and promotes products or services for sale.
- Customers find the products or services and place orders.
- A payment processor enables the exchange of the goods or services electronically via payment options like credit cards or digital currencies.
- The customer receives a confirmation email or SMS along with a printable receipt.
- If the transaction is for goods, the seller ships the products and sends the customer a tracking number via email or SMS. If the transaction is for a service, the service provider can reach out to schedule and complete the service.
Along the way, many E-commerce tools and technologies work together to help make online purchases possible. On the technical side, the transaction can depend on data, logistics, warehousing, supply chains, and other systems and processes.
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