Process categories of e-commerce

The technologies that support e-commerce include e-commerce or mobile commerce, electronic transfer of funds, internet marketing, electronic data interchange, inventory management systems, and online transaction processing among others. In this article, we will look at e-commerce basics such as, 1 what is e-commerce? E-commerce can be successfully leveraged by businesses to create the sales aspect of their enterprise.

It can be an effective market entry strategy for companies that do not have an established physical retail location. Under the e-commerce umbrella there exist a variety of activities. These include:. As mentioned earlier, there are different ways in which e-commerce retailers offer their services. These can be defined as the pure-click, bricks-and-clicks and click-to-brick retailers.

Before deciding to venture into an e-commerce business, it is a good idea to ask some basic questions to help establish readiness. Though this is not an exhaustive list but it does offer a good starting point for entrepreneurs. There are many benefits to creating an independent website that is not part of an existing platform. It allows the business owner more control over the mechanics of the shop as well as its appearance.

There is better opportunities to create a unique brand presence. You may be starting your ecommerce business from the very beginning or trying to give an online presence to an existing. In any case, it becomes necessary to be clear on what will be sold, how it will be sold, who the customer will be and what the mechanics of the operation will be. Before a website can be designed, there is groundwork to be laid out.

This includes decisions on the following areas:. Either they can not catch up with the stunning speed of the internet to modify their procedures, or they are immature in business and have a short-term perspective. E-integration connects E-commerce choice of platform to finance, accounting, inventory, sales, CRM Customer Relationship Management , and marketing systems.

E-integration helps business companies save a bunch of time. It improves the speed of data exchange among multiple systems, enhances data accuracy, and quickly makes updates among systems. So far, very few organizations are totally E-integrated. They use humans instead to deal with these operations. Order generation is the main target of sale marketing.

An online business, especially start-up dot-coms, spends a lot of money on advertising in order to get customers to take a look at their products or services, and furthermore to convert their eCommerce website lead into consumers. Acquiring partnerships with well-known internet brand names is a crucial element in securing a visible profile and internet trustworthiness.

Cooperation of the junction box or infomediaries is another way of saving cost. Search engines are usually biased in favor of privileged websites, which are paid for this preference or charged to every user entering a partner e-commerce website through the medium website. Online businesses spend a significant amount of money on advertising.

The call center is the core of customer service in an enterprise. This is where customers can communicate and make complaints or queries about products and services. The call center staff is expected to resolve all relating problems professionally and appropriately in any scenario. Some E-commerce businesses outsource call centers so that they can effectively approach their markets as well as reinforce customer experience or customer satisfaction.

Any time and anywhere has become an indispensable culture in the E-commerce business. The limits of this type of commerce are not defined geographically, which allows consumers to make a global choice, obtain the necessary information and compare offers from all potential suppliers, regardless of their locations. By allowing direct interaction with the final consumer, e-commerce shortens the product distribution chain, sometimes even eliminating it completely.

This way, a direct channel between the producer or service provider and the final user is created, enabling them to offer products and services that suit the individual preferences of the target market. E-commerce allows suppliers to be closer to their customers, resulting in increased productivity and competitiveness for companies; as a result, the consumer is benefited with an improvement in quality service, resulting in greater proximity, as well as a more efficient pre and post-sales support.

With these new forms of electronic commerce, consumers now have virtual stores that are open 24 hours a day. Cost reduction is another very important advantage normally associated with electronic commerce. The more trivial a particular business process is, the greater the likelihood of its success, resulting in a significant reduction of transaction costs and, of course, of the prices charged to customers.

Business-to-Consumer B2C The Business-to-Consumer type of e-commerce is distinguished by the establishment of electronic business relationships between businesses and final consumers. Selling directly to consumers means keeping all profits and avoiding third-party branding rules, though generating traffic can be challenging. Platforms like Instagram, TikTok, Facebook, and Spotify enable commerce through content-driven channels.

Customers are already engaged, making it easy to integrate shopping features directly into social media posts or streaming profiles. Sites like Amazon, Etsy, eBay, and Google Shopping provide access to a large customer base but involve higher competition and commission fees. These platforms are ideal for reaching a broad audience quickly. Retail channels include physical stores, pop-up shops, and market stalls.

They offer face-to-face customer interaction and immediate feedback, though they come with higher costs and overheads. Selling in bulk to other businesses that then retail your products can move large quantities of inventory. It requires capital for stock and can involve managing relationships with retailers. Resellers purchase products and add value before selling them at a higher margin.

This can involve repackaging or enhancing products but requires compliance with original manufacturers. White-label products are generic items branded with your logo. This model allows for reduced production costs and quick market entry, but competition can be fierce. Mobile apps offer features like filterable catalogs and special deals, with expectations that they will account for a growing share of retail sales.

Apps enhance user engagement but require significant investment. Business-to-Business B2B sales involve selling products to other businesses, often with higher-value transactions and repeat orders. It involves longer sales cycles and higher production costs. They can boost visibility but may involve profit sharing and less control over customer data.

The most common payment methods for e-commerce transactions, offering widespread acceptance and convenience.

Process categories of e-commerce

Services like PayPal, Apple Pay, and Google Wallet store payment information securely and enable quick, easy transactions via digital wallets. Allows customers to pay in cash at the time of delivery, popular in some regions for its simplicity and trust. Mobile payments made through mobile apps or services, often integrated with digital wallets, providing a fast and secure option.

Allows customers to purchase items immediately and pay for them in installments over time, often facilitated by third-party providers. Digital currencies like Bitcoin and Ethereum, offering an alternative payment method with growing acceptance. Cards loaded with a specific amount of money, used for online transactions in place of traditional credit or debit cards.

Selecting the appropriate revenue model is crucial for e-commerce success, influencing how your business earns income and interacts with customers and suppliers. In dropshipping, you sell products without holding inventory. When an order is placed, you purchase from a supplier who ships directly to the customer. This model requires minimal investment but depends on reliable suppliers and effective customer service.

White labelling involves selling products made by another company under your brand. It allows you to leverage established products and add your branding, enabling rapid expansion. However, you have limited control over product development. Wholesaling requires significant capital investment for managing inventory and logistics. You sell products in bulk at discounted rates, benefiting from volume sales while needing to maintain competitive pricing.

Private labelling involves selling products manufactured by others but branded as your own. The subscription model charges customers a recurring fee for regular deliveries of products or services.