Ecommerce, short for “electronic commerce,” is the process of buying and selling goods and services online through the internet. Customers browse and purchase products from a seller’s digital storefront, typically on a website or mobile app, with transactions completed electronically using payment methods like credit cards or digital wallets. Essentially, it’s online shopping where sellers can list their products and buyers can purchase them with a few clicks, all facilitated by an online platform.
Key points about ecommerce:
Core function
Connecting sellers with buyers to enable online transactions.
Access points: Customers can access ecommerce stores through websites, mobile apps, or even social media platforms.
Payment processing: Secure online payment systems are crucial for handling transactions.
Different models
B2C (Business-to-Consumer): A business selling directly to individual consumers (e.g., buying clothes from an online retailer).
B2B (Business-to-Business): A business selling to other businesses.
C2C (Consumer-to-Consumer): Individuals selling to other individuals (e.g., selling used items on an online marketplace).
How ecommerce works
Product listing: Sellers create product listings on their online store with details like descriptions, images, and pricing.
Customer browsing: Buyers search for products on the website and add items to their virtual shopping cart.
Checkout process: Customers provide shipping information and select a payment method.
Payment processing: The payment gateway securely handles the transaction between the customer’s bank and the seller.
Order fulfillment: The seller packages and ships the purchased items to the customer.
Benefits of ecommerce
Convenience: Customers can shop anytime, anywhere.
Global reach: Businesses can sell to customers worldwide.
Cost-effective: Lower overhead costs compared to physical stores.
Greater product selection: Ability to offer a wider variety of products than a physical store.
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