Electronic commerce is a category of a business plan, or at least, one aspect of a more complex business model. It involves an individual or an organization conducting transactions via an electronic system. A wide variety of products and services can be provided through electronic commerce.
In ecommerce Australia and countries around the world, ecommerce usually functions within four particular market sectors. These are business to business (B2B), business to consumer (B2C), consumer to consumer, and consumer to business. Selling or purchasing an item or service from an online source involves participating in electronic commerce.
How It Works
To successfully engage in ecommerce, an individual or company needs to be equipped with several things. This allows online transactions to occur, and thus for electronic commerce to take place.
The first thing that is required is a product. This means that a person or an organization must have a product or service that others would want to purchase. They may be the middlemen, moving the good or service between companies or they can manufacture the product themselves. The vendor must then have a ‘location’ from which consumers can buy the product. This can take the form of a website or an online store.
This ‘location’ must provide a way for the consumers to place orders and for the vendors to receive them. There must also be a mechanism in place for vendors to accept payments made by consumers. There must be a way to verify that these payments have been made. The next part of electronic commerce involves providing the customer with the purchased good or service. When the consumer retrieves the order or it is delivered to the consumer, it is known as fulfillment.
This ‘location’ along with the goods that are offered must gain recognition among the targeted customers. This requires marketing on behalf of the website, online store, or organization. This creates awareness and increases traffic to the ‘location’.
There must also be a service available to consumers once fulfillment has occurred. This is in the form of returns, customer service, and technical support. Consumers should be able to exchange merchandise if they do not meet certain standards. The increase in purchase of digital and electrical devices has also caused a need for technical support among consumers.
Rise in Popularity
Electronic commerce has enjoyed a meteoric rise in popularity in the recent years. There are more and more corporations that are offering their goods and services online. The most sought after items on the internet are computer-related items, music, financial services, tickets, clothing, and information.
There are several reason why electronic commerce has become quite so widespread. In part, it is due to the effort created by corporations. These companies have found that there is a considerably lower transaction cost involved with online sales. This has prompted many to encourage their customers to use these services instead. The internet has also allowed companies to create greater brand awareness. This has resulted in more customer loyalty for companies using online methods of marketing.
Consumers have embraced ecommerce due to the ease of the transactions. Multiple purchases can be made from anywhere, including the comfort of their home. Customers also have greater access to products and services than in regular stores. This makes these individuals to tend towards these types of transactions.
Electronic commerce is a trend that is currently booming across the world. As more organizations begin to utilize these services, these markets are set to increase in magnitude.