So, what is an e-commerce store, and how it differs from traditional retail? The term “e-commerce” means electronic commerce, which is a bit too broad of a word for electronic trade through a site.

To be more specific, this term stands for any trade, which incorporates the transfer of data across the web with the purpose of selling or buying something. It relates to various businesses, from small retail websites to business trade between international organizations.

All electronic commerce sites have some peculiar features, yet they all employ the same fundamental functions, such as an acceptance of credit cards. Thanks to this opportunity, virtually all goods or services may be bought on the World Wide Web irrespective of time and distance.

FYI: Want to find out your web development cost? Try our web calculator.

Look at our Trendeo case for inspiration.

Why is E-commerce Important?

Electronic trade has snowballed over the past decade and is forecasted to proceed at the same level, or even speed up. Since more brick and mortar stores realize the significance of starting an e-commerce business and moving their trade onto the Web, soon the borders between traditional and electronic business will become completely blurred.

Decided to create an e-commerce site? It’s a perfect idea because internet sales are becoming more and more popular since buyers gain from:

  • Lower costs offered by websites for e-commerce in comparison with conventional retail outlets
  • The convenience of having any purchased goods at the doorstep the very same day
  • Ordering cheap goods from foreign vendors
  • The impressive assortment offered by e-commerce storefront
  • Comparison engines, which can recommend the most appropriate product or service
  • Internet auctions, where people can locate rare and exclusive items

Clothes, food, music, sales text – people buy anything online and benefit from lower costs and convenience. Once you start an e-commerce website, you’ll be able to give discounts since you will eradicate overhead (for instance, salaries and wages associated with a conventional store). These days, the convenience makes the difference! Shipping is so rapid today that once an order is processed electronically, it can usually be delivered the very same day. For instance, Amazon Prime has managed to build the entire industry around easy shopping and fast shipping.

Also, you can build an e-commerce app for a more significant impact.

Benefits of Electronic Commerce for Business

Benefits of Electronic Commerce

There are many reasons to have an e-commerce website:

  1. Lower expenses due to reduced labor, paperwork and other costs associated with conventional stores.
  2. Reduced time. A shorter period of payment, quicker delivery of purchased goods.
  3. Flexibility and better control. The capability to deal with complicated situations, clients’ profiles and an assortment of goods without the situation going out of control.
  4. Better relations with business partners. Constant dialogue between business associates leads to long-lasting relations.
  5. Better relationships with clients. Companies that need a website want to be closer to the buyers because the closer you are to the clients the more difficult it is for competitors to disturb your relations.
  6. International trade. The Web can expand any business into broader geographical settings.

How to Start an E-commerce Store?

Electronic commerce works through several steps employing the database, Internet site code, and third-party apps like payment gateway. Electronic commerce sites use an SSL (Secure Sockets Layer) certificate to protect information that’s being transferred. 

Critical information can’t be stored within the site’s database except they use the appropriate Payment Card Industry Data Security Standard (PCI-DSS).

Read our article: “How to build an e-commerce store?” to know more.

When a customer has scrolled through an e-commerce shop and determined that he or she would like to purchase, you need to have a procedure accepting the purchase. In e-commerce, it’s recognized as a shopping cart. Apart from identifying an order, this software performs a few other things:

  • calculation of taxes
  • processing of different discount prices
  • capturing the billing and client’s shipping address
  • up-selling
  • guaranteeing client’s acceptance of conditions of sale
  • creation of codes, for instance, tracking or order number and so on
  • presenting clients with shipping options
  • forwarding buyers to a payment gateway
  • redirecting buyers to the download page if the purchased item can be downloaded

E-commerce can become an extremely lucrative venture, yet you can’t raise profit overnight. Before you launch your online e-commerce business, it’s vital to perform analysis, ask questions, and make decisions on different facts obtained from your study. We hope this article can help your company make a proper decision in turning your venture into a successful e-commerce business.

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