Ecommerce is a rapidly growing term in business. The word ‘ecommerce’ refers to both commerce and electronic commerce. Ecommerce is basically the act of selling or purchasing goods electronically over the Internet or via online services. It has grown out of the globalisation of the internet, which has opened up new avenues for businesses to sell their products to customers all around the world. In other words, ecommerce is essentially the act of buying and selling using the internet or other computer networks. The process is simple: with ecommerce websites, you can buy or sell almost any product that you want.
There are two basic parts to any electronic commerce business model: the hardware and software. The hardware is obviously the computer or other electronic device used to facilitate the exchange of information. This includes hardware such as computers, laptops, handheld devices, webcams, printers etc. Software is what enables the exchange of this information.
Most ecommerce websites will contain an integrated system for accepting payment. This is done through a form of online payment or via one of the many methods commonly used in the electronic commerce industry such as PayPal, Google checkout, Chase bank eCheck, Alipay, Moneybookers etc. There are also a number of other merchant service providers who help the seller and the buyer by providing them with payment gateway access so that they can accept credit card payments for selling products and services directly to the consumers.
Another very important aspect of ecommerce is the aspect of location. This is critical if you want to succeed in the online market. Most ecommerce businesses today are found online and therefore there are far fewer offline businesses selling the same products and services. Offline businesses have far less overhead costs and therefore can afford to sell their products and services directly to consumers at lower prices. The fact that consumers can instantly purchase items from these businesses means that the retailer does not have to spend hours, days or even weeks getting the item into and out of the physical store.
The most successful ecommerce website will be one that attracts as many visitors as possible and also that attracts more customers. Many online stores employ strategies such as pay per click advertising. These businesses are able to take advantage of certain keywords and adverts which are associated with specific products and services. The benefits of this strategy include attracting more visitors and thus increasing the chance of more sales. These businesses are able to make a significant amount of money in just a short period of time. Other strategies such as search engine optimization can help to improve the ranking of a site on Google and other search engines.
Deepak Wadhwani has over 20 years experience in software/wireless technologies. He has worked with Fortune 500 companies including Intuit, ESRI, Qualcomm, Sprint, Verizon, Vodafone, Nortel, Microsoft and Oracle in over 60 countries. Deepak has worked on Internet marketing projects in San Diego, Los Angeles, Orange Country, Denver, Nashville, Kansas City, New York, San Francisco and Huntsville. Deepak has been a founder of technology Startups for one of the first Cityguides, yellow pages online and web based enterprise solutions. He is an internet marketing and technology expert & co-founder for a San Diego Internet marketing company.