E-commerce, electronic commerce, online and internet trading: all of those terms indicate the acquisition and sale of products or services using electronic information technologies. the net is that the core technology. But other sorts of digital data transmission and processing – like mobile communications, electronic customer databases or accounting software – also are utilized by companies. What exactly is e-commerce, what advantages and drawbacks does it have and what are this trends in online trading?
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Table of Contents
What is e-commerce?
Advantages of electronic commerce
Downsides of electronic commerce
Current trends in Internet trade
What is e-commerce?
In addition to the acquisition process itself , electronic commerce includes all processes that initiate and process a procurement . an internet shop acts as a central sales platform on which prospective buyers cannot only browse the range, but also order and pay employing a digital system. An electronic inventory management system registered the merchandise sold and updates the inventory. An RFID chip tracks the shipping route. CRM systems successively allow you to remain involved with the customer.
In a narrower definition, e-commerce thus forms a part of e-business . This includes all automated business processes during which electronic information and communication technologies are used. The aim of using largely automated business processes is to create work more efficient and increase sales.
Digital technologies form the idea of electronic commerce. Suppliers and customers exchange data digitally as a part of e-commerce. Here could also be involved very different technologies:The spectrum ranges from simple radio technology (e.g. Bluetooth) to highly complex systems supported computing (AI). additionally to communication technologies like the net and telephony, electronic databases and data processing software also are used, social media or television are used as advertising channels, payments are processed via online banking and chatbots take over customer service. during this way, a widespread digital infrastructure is formed from wireless or wired networks. The common denominator is that the undeniable fact that spatial distances are overcome. Sometimes this completely replaces physical contact. E-commerce eliminates the requirement for consumers to travel to a brick-and-mortar store or face-to-face advice.
The term “e-commerce” – or “eCommerce” – comes from the English term “electronic commerce” and means “electronic commerce” in German. All processes associated with the acquisition and sale of products and services are administrated using digital systems – be it the net, computerized databases or accounting software.
Characteristic of e-commerce
The purpose of electronic trading is to optimize sales processes in order that the businesses concerned generate more sales . All operations associated with sales are to be made more efficient and also the associated costs are to be reduced. With the assistance of the net, companies have gained new sales channels via online shops, marketplaces (e.g. Amazon) or auction platforms (e.g. eBay) . They win new customers through social media, digital advertisements and newsletters and maintain numerous customer relationships with relatively little effort using automated CRM systems.
Online retailers often decide which technologies and sales channels they use, betting on the industry and business objective . it’s by no means necessary to digitize all processes. Rather, the trend is towards multichannel and cross-channel marketing, which uses several selected channels at the identical time. for instance, a furniture store can gain customers by being present online. At the identical time, it should still offer a stationary shop or a minimum of a showroom. There, customers can inspect the favourite kitchen unit or collect furniture ordered online themselves to save lots of freight forwarding fees.
In electronic commerce, it’s important to coordinate all channels in a perfect way . The electronic technologies used must be integrated in addition as possible into the worth chain – from logistics to marketing to customer service. for instance, a product advertised on the web site should even be available within the warehouse.
Electronic trading serves to extend efficiency . for instance, online trading quickens sales processes. Because customers can use it to simply browse the range from their smartphone or computing machine and order at any time. Computer-based systems automate processes, which implies saving time. At the identical time, this also reduces personnel costs . If you are doing not run a business establishment, e-commerce even eliminates rent. And selling digital offers over the net is much cheaper than selling them through the post or comparable service providers. Companies may open up new sales markets more easily and cost-effectively via e-commerce. B. act nationally.
E-commerce allows any quite business transaction . Business will be done, for instance, both within the B2B area (business relationships between companies) and within the B2C area (business between companies and consumers).