What is ECommerce?
ECommerce is a commonly used term for buying and selling products over the Internet or other computer networks. The amount of eCommerce trade has multiplied by many factors over the last 10 years with the growth in Internet connections. Ecommerce typically uses the Internet as some point in the transaction, although it can also use e-mail. However, one of the best eCommerce definitions is a commercial transaction which is conducted electronically, using the Internet.
ECommerce is also considered to be the exchange of data to facilitate the transaction, such as the business or consumer providing their name, address, payment method details such as their credit card and purchase selection information. Other definitions that are sometimes used for Electronic or e-Commerce are MultiChannel Retail and MultiChannel Retail eCommerce. ECommerce that is conducted between 2 businesses is known as business-to-business or b2b e-Commerce. ECommerce that is conducted betwen businesses and consumers is known as business-to-consumer or b2c eCommerce. This is the type of eCommerce carried out by Amazon.com and or the eCommerce activities of a traditional High Street retailer such as John Lewis. Online retailers are sometimes known as e-tailers and online retail is also known as e-tail.
Almost every large High Street retailer has a presence on the Internet. Use of ECommerce can have the following benefits to businesses.
- Reduce the administrative costs of trading
- Reduce stock handling
- Increase supply reliability
- Cut out intermediaries
- Provide a new channel to market
- Provide product and service information to customers
