What is E-commerce?

What is E-commerce?
What is E-commerce?

What is e-commerce?

Electronic commerce is defined as the process of conducting commercial transactions such as selling information, services, and goods through the Internet. E-commerce includes many large economic activities. This trade also consists of buying and selling between companies and consumers, in addition to internal commercial transactions that support this trade. The most prominent examples of electronic stores; Amazon, Uber, eBay and more.

How did e-commerce start?

E-commerce started on August 11, 1994, when someone sold a Sting CD to their friend using his NetMarket website; Which is one of the American retail sites, and this was the first e-commerce process, and then e-commerce operations began to develop, as companies were able to offer and sell their goods and services on a large scale that they could not reach.

What are the types of e-commerce? E-commerce is an effective way for buyers to interact with sellers via the Internet, with the aim of providing goods and services, transferring money and exchanging information. The four types of e-commerce:


Business to Consumer (B2C)

This type of e-commerce is defined as a direct sale process between companies and the consumer, where the company sells its goods or services directly to the consumer. He needs it and registers his order, and after this process, the company ships the orders and sends them to the consumer directly, and the most prominent examples of this type are Amazon, Flipkart and Jabong.

Business to Business (B2B)

This type of e-commerce is characterized by the buying and selling operations that take place between different companies, so that the consumer cannot participate in this type of commerce, and it may include this type of commerce; Manufacturers, wholesalers and retailers.

Consumer to Consumer (C2C)

This type of e-commerce is characterized by the possibility of buying and selling between consumers, where the consumer can display what he wants to sell through special websites, and then other individuals browse these sites and choose the goods they need, and these goods can be cars, computers or furniture And others, and one of the most prominent examples of sites that adopt this type of e-commerce is Craigslist.

Consumer to Business (C2B)

This type of e-commerce is defined as the process of exchanging or selling business between the consumer and companies, as the consumer provides or presents business and offers it to companies, where companies use these businesses to complete a business process or gain a competitive advantage. For example, someone can design A program that serves the interests of a particular company, and then sell the program to that company.

What are the forms of e-commerce?

There is a range of forms that e-commerce can take, as these forms include the various relationships and transactions between sellers and buyers, and the forms of e-commerce vary depending on the goods and services that are exchanged in these transactions, and the following are the most prominent forms of e-commerce:

Retail: The process of retailing is done by selling a product or a commodity by the company directly to the consumer without any intermediary between them.

Wholesaling: The process of wholesaling is done by the retailer purchasing goods and services from the company and then selling them directly to the consumer.

Third Party or Dropshipping: The process of third party or dropshipping is done by selling a product and shipping it to the consumer through a third party.

Crowdfunding: The crowdfunding process is done by collecting consumers’ money before they deliver the product or commodity with the aim of raising capital to start working on the product that will be sold and put on the market.

Subscription: The subscription process is done by the consumer automatically purchasing a product or service on a regular and recurring basis, and this process continues until the consumer cancels his subscription.

Physical Products: This type of e-commerce relies on tangible goods and products that require constantly stockpiling and shipping to customers when they are sold.

Digital Products: Digital products are courses, downloadable software, or any other digital good, where these products require you to purchase or obtain a license to be able to use them.

Services: Services are a set of skills that someone provides in exchange for compensation, as if the service provider's time can be purchased for an agreed price.

What are the main advantages of e-commerce?

E-commerce is characterized by the possibility of investing and doing buying and selling operations outside the borders surrounding the seller and the buyer, and e-commerce has contributed to reducing the cost of shopping and selling for both the buyer and the seller, and any product, commodity or service can be bought or sold over the Internet, where e-commerce provides almost most of the resources he needs Humans, as the Internet provides a variety of goods and products that cannot be counted. The following are the most important advantages of e-commerce:

Increase the possibility of expanding business and spreading goods to reach different parts of the world, thus helping to remove the barrier of access to remote geographical locations.

Reducing the cost of transactions, as it helps in eliminating many costs such as store maintenance, and thus obtaining a greater profit.

Speeding up the delivery of goods, in addition to saving time and effort for both the seller and the buyer.

Recognize and quickly address customer complaints.

Providing the possibility of shopping at any time throughout the week, as it is available around the clock.

The ability to shop from anywhere in the world.

The customer communicates with the seller directly without the presence of any intermediary.

What are the main negatives of e-commerce?

It cannot be said that e-commerce is free of negatives, as with any other activity, there is a risk of failure that everyone who wants to trade online must take into account, and such trade faces the risk of mixing personal funds with company funds in the event that the business is a partnership or As an individual business, therefore, everyone who wants to establish an e-commerce must have a broad view of the pros and cons of e-commerce, and the following are the main negatives of this type of commerce:

There is a risk that the website you are creating to trade with will crash, so hosting the website on a trusted platform should be done.

Depriving consumers of trying or interacting with the product before purchasing it to see if the product is worth the desired value.

The strong competition that the e-commerce process faces, if a sector is chosen in which many companies operate, there will be problems in attracting customers.

Sellers must be connected to the Internet continuously and around the clock, in order to respond to questions asked by customers about products or services.

The risk of losing or missing products shipped by delivery companies, and the possibility of delaying delivery for a week until it reaches the consumer.

There are significant security risks that include credit card and delivery fraud.

What do you need to start an e-commerce business?

The process of e-commerce is an effective and convenient way to earn money online, as e-commerce has spread very quickly, as many e-stores have been opened, and the number of people who rely on e-stores for their shopping has increased, and it is worth noting that there are many people who want In opening their own electronic stores, which they have to think of a profitable and constantly scalable business, they must also have a long-term vision to build a business that achieves real value for the market. The following are the most important needs that must be met to start an e-commerce business:

Find the right business model

When opening an online store, you must think about the right product to sell, as you must search for the most widely traded products on the Internet, and after finding the idea of ​​the product to be sold, you must know how to get this product.

Study the market well

Those who want to create their own online store should do a market study, where a comprehensive research should be done on competitors and the problems and barriers that may be faced in the future, and appropriate ways should be found to distinguish the goods that will be sold from the goods of other electronic stores.

Choose a brand that distinguishes you

Whoever wants to create an online store must make some difficult decisions, as the name or brand that is appropriate for the field of work to be started must be chosen, and a logo must be created that represents the business that will be operated.

Make a solid plan

Before starting to open the store, a detailed and tight work plan must be drawn up, where it must be studied whether the business will need external financing from investors or not, and a detailed research must be done about the cost of starting the store and drawing up a marketing strategy, and among the most important things that must be taken into account To create the plan is; Taxes, production costs, shipping costs and workers' wages, if any.

Create your online store

After completing the previous steps, you must start creating the store, where you must consider many things that help create a distinctive store, such as obtaining beautiful photographs of products, choosing an e-commerce color palette, writing attractive product descriptions, and many more.

Choose the right ways to attract customers

There are a number of ways that help attract customers, as it is possible to promote products or the store itself through social media such as Facebook, Twitter, etc., and this is done by encouraging customers to like and share the store page, and the number of customers can be increased by providing incentives such as discounts and free gifts For customers who promote the online store page, it is also possible to agree with the electronic stores to exchange the display of products on the different electronic pages.

How can e-commerce sales increase?

All those who work in the field of e-commerce aspire to increase their sales, as they must keep pace with new ways and constantly change strategies to increase e-commerce sales, as the old methods may not be effective with the technological developments that customers keep pace with, and the following are ways to increase e-commerce sales:

Target your existing customers

Online stores can have trouble growing, so owners of these stores should focus on improving their customer retention strategy, rather than on acquiring new customers. Targeting local customers is also a good way to increase online store sales, as a result of their knowledge of the store’s brand. One of the most prominent ways to target local customers is to create a loyalty program.

Show your website in a unique way

Displaying the website of the online store in a distinctive way is an effective method to increase sales, as you must display symbols that show that the online store is trustworthy, as customers always look for safe sites to shop from, to ensure that they are not exposed to fraud.

Use the video to showcase products and services

Using video to display products and services is a good way to increase online store sales, as the process of displaying products using video helps increase participation as well as interest in all the products the store offers, as video achieves the highest return on investment compared to other marketing methods.

Share positive customer reviews on your site

The process of sharing positive customer evaluation on the website of the online store is one of the things that helps to increase trust in others, and thus increase e-commerce sales, and this process is done by sharing photos that prove the positive evaluation of the products sold in your online store.

Make your site usable on mobile devices

This process is done by creating a website that is suitable for use on mobile phones, because most people use mobile phones and tablets to shop online, and this process helps in improving the customer experience.

Give special offers

The process of presenting special offers is one of the effective processes in increasing the percentage of sales for electronic stores, and an old strategy can be used to ensure increased sales when presenting these offers, which is by raising the basic price of the products and then offering offers on it as a discount, and the discount can include either certain items or all Items that are being sold.

View the best selling items

The process of displaying the best-selling items is done by directing customers to the things that are most purchased, as this process will lead to an increase in the percentage of sales, because people browsing the store website do not know what they want to buy, and therefore this process will help direct them to buy products from the site.

Offer special offers on holidays and holidays

Customers usually shop during holidays and special times, and therefore the process of providing special offers during these times of the year will attract more customers and thus more sales, and overcrowding in markets during these times is one of the factors that help increase e-commerce sales, as many want of people buying online.

Offer various payment options

Providing various payment options is an essential process in increasing e-commerce sales, as a customer may want to buy a commodity or a product, but they do not have the payment method that the store deals with, and therefore the more payment options the more e-commerce sales increase, and credit cards are one of the means paying off.

Put the phrase Limited Quantity 

From time to time, the process of putting the phrase “limited quantity” from time to time is an effective process in increasing e-commerce sales, as it helps to motivate customers and encourage them to register purchase orders as soon as they see the product instead of delaying it, as this phrase creates fears among customers that the product may run out before they buy it.

Share with your customers what distinguishes you from others

This process helps to convince customers to choose the products that are displayed in the store, and helps to increase the customer's confidence in the products by explaining the specifications of the offered products and their best features, and the more effective products are presented, the more sales will be on the e-commerce site.

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