{"id":2660,"date":"2022-04-08T09:34:15","date_gmt":"2022-04-08T08:34:15","guid":{"rendered":"https:\/\/imarena.net\/?p=2660"},"modified":"2023-02-18T15:21:39","modified_gmt":"2023-02-18T14:21:39","slug":"ecommerce-business","status":"publish","type":"post","link":"https:\/\/imarena.net\/ecommerce-business\/","title":{"rendered":"eCommerce 101: All About e-commerce Business"},"content":{"rendered":"

The internet is a great way to start your own business. It’s not too difficult to get started and there are many different ways to make money on the web. One of the most popular businesses that people start online is an ecommerce business, where you sell digital or physical items such as clothing or electronics.<\/span><\/p>\n

If you’re interested in starting an eCommerce business but don’t know where to begin, then this guide will walk you through all you need to know!<\/span><\/p>\n

First, let’s get an understanding of what ecommerce business is all about.<\/span><\/p>\n

What Is E-Commerce Business?<\/b><\/h2>\n

E-commerce or electronic commerce refers to transactions conducted through the Internet. When people and businesses buy or sell goods and services online, they are engaging in e-commerce. The term e-commerce also includes other activities, including online auctions, online banking, and payment gateways, and online ticket sales.<\/span><\/p>\n

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How ECommerce Business Works<\/b><\/h2>\n

Ecommerce is run the same way a physical business is run, except that this time, the buying and selling is done via the internet. So let’s check out the processes it would take to run an ecommerce business<\/span><\/p>\n

There Should Be A Product(s) To Be Sold<\/i><\/b><\/h3>\n

As with normal commerce, there has to be a product or products that you want to sell. A product you believe the market will find to be of value. It could be physical (grocery, apparel, toys etc., or digital (ebooks, courses, software) etc.<\/span><\/p>\n

There Should Be An Online Shop<\/i><\/b><\/h3>\n

When you have the products you wish to sell, the next step is to establish where to place the products where people can visit to check out the product and purchase. This means you need a website that will serve as your online shop with features to display your products and be able to process orders.<\/span><\/p>\n

There Should Be a Process to Accept Orders<\/i><\/b><\/h3>\n

When a visitor checks out the items on your e-commerce website and decides that they would like to buy, there has to be a process in place to accept their orders. The software that runs this process is called Shopping Cart software.<\/span><\/p>\n

This software takes care of monitoring what is being purchased and updating their cart. It also computes taxes, processes coupons and other discounts, creates invoice numbers, order numbers, and all such codes. It can also upsell the customer, captures the billing and delivery address of the customer, forwards customers to the payment gateway where they need to make payments and all such things.<\/span><\/p>\n

If the item is a digital product, it can also redirect customers to the download page after successful payment.<\/span><\/p>\n

There Should Be A Payment Mechanism<\/i><\/b><\/h3>\n

Many e-commerce businesses need a medium of collecting payment for the products they sell on their website. The software that is required for this process is called a Payment Gateway.<\/span><\/p>\n

There are different payment methods by different payment gateways and it is left for you to choose the type you want your customers to pay with. The most popular ones being credit cards and Paypal.\u00a0<\/span><\/p>\n

There Should Be A Delivery System<\/i><\/b><\/h3>\n

If a product being sold is a digital product, the delivery could be instant – as soon as the payment s made. However, in the case of physical goods, an effective logistics personnel or company is the key to successful and prompt delivery. This is the biggest challenge of e-commerce business owners who want to deliver within the timeframe they promised their customers lies in the delivery system they choose. It could make or mar their business.\u00a0<\/span><\/p>\n

As a result, e-commerce businesses need to make sure that they deliver the right product to their customers, in good condition, and within the period that the customer expected. Ecommerce business owners should endeavour to outsource their delivery to a reputable logistics company to avoid disappointing their customers.<\/span><\/p>\n

Customers Need To Be Serviced<\/i><\/b><\/h3>\n

Pre-sales and post-sales service are essential for customers because customers might have questions about features not listed on the website prior to the sale; or questions after-sale about the use, repair, or enhancement of products or services they have purchased.<\/span><\/p>\n

You Must Have A Good Reverse Logistics System<\/i><\/b><\/h3>\n

An error-free product is not possible. Some products may not function correctly or be damaged. Sometimes, the wrong product is delivered. This is when the reverse logistics process kicks in. The usual method is for goods to move from the ecommerce company to the customer. Reverse logistics is the opposite.<\/span><\/p>\n

There are many moving parts to an ecommerce company. Each of these moving parts must be managed well if you want to make your ecommerce business a success.<\/span><\/p>\n

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There are six traditional models of ecommerce and they are:\u00a0<\/span><\/p>\n