E-commerce, electronic commerce, is a business model whereby commercial transactions are conducted electronically through the Internet. These transactions include buying and selling of goods, marketing of goods and services, launching of goods and services, financial exchanges, transmission of data, inventory management, and supply chain management. An ecommerce agency can help you set up the platform for your business using the professional platform. It uses technologies such as e-mail, mobile phones, and World Wide Web.
Advantages of e-commerce
Barriers of time and distance are minimized, depending on the type of business. Through e-commerce, the world has become a global village. Thus goods and services are electronically exchanged from different parts of the world within the shortest time possible.
E-commerce offers a competitive advantage to the business compared to the traditional methods. Goods and services will be cheaper since the business will not incur extra running costs in employing and maintenance of workers to run the stores. It only needs proper coordination between the customer and the shipping company.
E-commerce is fast
The company will reach millions of customers by a press of only one button. This is enhanced more with the provisions of allowing forwards and likes amongst most internet platforms. Real time transfer of information makes e-commerce more desirable.
It is convenient
E-commerce allows businesses to be transacted anywhere in the world. An employee does not need to go to the office to analyze how many orders needs to be supplied. This can be done from the comfort of their homes, or while traveling.
Wide variety for selection
E-commerce offers a wide range of products. A customer will have a variety to chose from that will suit their taste and specifications. The traditional model of a transaction will be limited to space, and the number of workers involved ensuring that the product reaches the intended customer. Furthermore, it is easier to search for products that are sold online, thus increasing their accessibility to customers.
Better understanding of customers
E-commerce will allow a business to know the different levels of their customers. This is through provisions for customers to comment with suggestions on how to improve the products or service. This information will be used to create a database for strategic planning of the business.
Requirements for e-commerce
For a business to fully embrace e-commerce, it must fulfill several factors: These are:
The business should do research to establish which products are not easily available on in the malls and can be available online. For goods, the shipment should be given priority. This will involve the cost of shipping and regulations of transactions between different states.
This is an operating system that will allow the customers to buy goods and services then consolidate them into one package. A Business should outsource for a customized shopping software that is user-friendly and suits their range of products to ensure they prosper in E-commerce.
The business must open a merchant account, through which payments will be done. This could involve accepting online credit cards or other known payment methods.