What is E-Commerce, you ask? Wikipedia defines e-commerce as “a transaction of buying or selling online.” However, this seemingly simple definition of e-commerce can be quite confusing and complex. E-commerce is so much more than a different way to do business. So let’s break it down in layman’s terms.
It’s a New Way to Shop. As technology advances, simple tasks become easier and easier. Today, we have the opportunity to shop on the internet from the comfort of our own homes. Additionally, consumers have the opportunity to shop at multiple “stores” at once while surfing the web in their living room. This means that it is now easier than ever for consumers to find exactly what they are looking for because of the ease with which they can compare products from various stores.
It’s a New Way to Sell. With the invention of the internet came an array of possibilities for businesses. With an e-commerce store, businesses have less overhead costs because they do not have to own large stores for people to shop in. They only need a warehouse and good pictures of their products. Some difficulties that businesses face with an e-commerce model is that consumers cannot touch and feel their products when shopping online. Therefore, businesses have to use words more than ever to sell their products.
It’s a Way to Reach New Markets. The internet reaches across the world, which means businesses operating online also have access to markets across the world. Operating an e-commerce stores opens the door for businesses to reach customers outside of their geographical location. This opens the doors for businesses to reach customers not only in their home towns but also in other countries, allowing them to serve more customers and maximize their profits.
Hopefully now you understand e-commerce a little bit better. For more information, check out the video below.