Trade has always been a significant activity in human interaction. Buying and selling of goods and exchanging services are one of the unavoidable ventures of mankind. In short, trade is part of human civilization. Initiating from the barter system and now embracing online stores, we’ve experienced numerous forms of trade and transactions. With science and technology pacing up rapidly to uplift every sector, trade isn’t untouched. The use of the internet has made a vital contribution to commercial transactions. Electronic Commerce; eCommerce is one of the most common modes of buying and selling goods. Traditional Shopping methods are being rapidly replaced by eCommerce.
Meaning of eCommerce
In simple words, eCommerce is the digital buying and selling of goods and services. Also mentioned as internet commerce, it uses the internet (through the website of the seller) to buy and sell the products instead of the traditional method of trade. The purchaser can see the goods online, compare them easily, order them through the internet, and receive the goods. There’s no need to physically visit the store to purchase something. All you need is a working device, a stable internet connection, and of course, knowledge about the store’s site.
Instead of a traditional shop located at some geographical location, the shops are present virtually at the World Wide Web (www). Anyone from any part of the world can access the store. But the list of places where the store provides services completely depends upon the policy of the store. Some online stores are international, some are national whereas some are local.
The mode of payment is preferably online transactions but Cash on Delivery is also in practice. You can either transfer money through the internet or simply pay when you receive your delivery.
Brief History- How did it start?
In the early 60s, the concept of EFT started. EFT stands for Electronic Fund Transfer meaning the digital transactions and transfer of money. The concept of eCommerce evolved through the concept of EFT.
The global history of eCommerce begins with the first-ever online sale on August 11, 1994, a man sold a CD by the band Sting to his friend through his website NetMarket, an American retail platform. And, today eCommerce accounts for a large part of business and economy. However, online shopping started in Nepal only in 2000.
What does it deal with?
eCommerce is limited to buying and selling goods. It’s completely a commercial strategy. All the components and targets of eCommerce are directed towards gaining customers to increase sales. You can observe the following diagram to know about the areas focused by eCommerce:
eCommerce covers outwards facing processes that deal with customers, suppliers, and manufacturers. With the basic requirement of web design, the activities involve marketing and customer satisfaction, all with the motive to expand the sales. eCommerce is a new form of trade.
Types of eCommerce:
- Business to Consumer (B2C) – When a business sells goods and services to an individual.
- Business to Business (B2B) – When a business sells its original or acquired products or services to other businesses.
- Consumer to Business (C2B) – When the consumers sell their original products to business for commercial purposes.
- Consumer to Consumer (C2C) – When the consumers sell their goods and services directly to other consumers through an online platform.
Examples of eCommerce:
- In eCommerce, the customer orders the goods using the internet through the website of the seller and the seller delivers the ordered products to the buyer’s location. Sometimes, the customer books the goods online and picks up at the offline shops.
- Instead of just a virtual store, the business can run the offline shop and continue sales through the website at the same time. This is actually a common form of online business. It’s a smart way of expanding a business.
- The common worldwide eCommerce sites are Amazon, eBay, Flipkart, OLX, etc.
- The popular eCommerce sites in Nepal are Daraz, Gyapu, SastoDeal, and so on.
With everything getting digital, why limit yourself to the traditional way of trade? Owning an online store and online shopping can be a really wise decision. If you wish to operate an online store, visit pasls.com for running your store with amazing features.