Concept of E-commerce: By Ecommerce we mean electronic commerce. When a product is bought and sold over electronic systems like internet and other computer networks then it is called electronic commerce. We can say that it is a paperless exchange of business related information by using emails, fax transmission; electronic fund transfer electronic data exchange (EDI).The main idea is to do business better and at faster rate.
It can be used for business- to- business or business-to-consumer transactions. It is helpful in reducing cost, reducing time, managing more complex situations with ease, making customers more loyal to be attached with your product or service only and it is helpful in expanding business over wider geographical locations easily.
Ecommerce website: Now there should be one platform to do business electronically or online. The place where the online business is done is Website. The seller has to create his website which acts like an online store. The transactions of buying and selling are done on these websites.
Advantages of Ecommerce websites:
- Globally Located: With the availability of ecommerce websites customers are not bound by geographical boundaries. They can take business information, select products, do comparison or purchase products from anywhere in the world with an internet connection.
- Lower transaction cost: It saves the costs like labor cost, marketing and advertising cost, stationary cost etc. If the products or services are downloadable then even distribution cost is also negligible.
- Reduce Time: It saves travelling time and cost of customers to reach the store and allows them to visit again and again with a mouse click.
- Faster: Online transactions are faster and more convenient.
- Better Customer Services: Online and quick service makes customers happy. It saves time and money. Customers can easily choose products and easily purchase them without moving physically. It is a competitive advantage for companies that do business with other companies.
- No need of physical set up of company: The seller can provide all the information related to business online. He can also displays products on websites and catalogs and other related information. Also customer need not to go to the store as it is available on the internet.
- Build Customer Loyalty and Expanded customer database: When the company gives better customer service through online, customers will buy from that website again and again and will give reference to others also which will in turn increase their database.
- Available 24/7/365: Online stores never close down. It is open every time. Even when the seller is sleeping customer can visit the online store, browse products and place orders.
Conclusion: Today Business entities across world are changing drastically with the arrival of Ecommerce. It has now become an important tool for business worldwide.