What is E-commerce?
“E-commerce” is a term that are widely used nowadays. But do you really know what E-commerce is? In this article, I will give you the most general knowledge about it.
What is E-commerce?
E-commerce, e-comm, EC – are all shorts for Electronic Commerce.
Distinguishing between E-commerce and E-bussiness
E-Business is a concept that appears before E-Comm, but they are often mistaken for one another.
E-commerce basically focused on online purchase, include external processes such as marketing, selling, ordering, shipping, contacting customers, supplier, partners,… while E-Business focusing on internal processes such as marketing, sales, ordering, delivery, contact with customers, suppliers, partners…
E-business is the use of the internet and online technologies to create operational efficiency. This includes internal processes such as manufacturing, inventory management, product development, risk management, finance, knowledge management, and human resources.
Sometimes, EC is considered a subset of e-business.
The role of e-commerce
In the rapid development of information technology and the 4.0 technology revolution, Ecommerce has become an inevitable upward trend of the times. Ecommerce has dramatically changed business models globally. A typical example is China with famous ecommerce sites such as Tmall, Taobao, JD.com, Aliexpress… The revenue of the Internet economy in this country in 2020 is approximately 6249.71 billion yuan (according to statista.com) and has an upward trend in the future.
Benefits of e-commerce
E-comm plays an important role in modern life because of its great advantages and benefits:
1. Unlimited distance, location
With ecommerce, consumers can make purchases anywhere without stepping foot out the door, the goods will be delivered to your door. At the same time, sellers do not need to open a brick-and-mortar store to display their products and still reach out to customers globally. All you need is a smartphone or computer with an internet connection.
2. Unlimited time
Unlike traditional stores are only open from 8 am to 10 pm, with e-comm, consumers can shop at any time they feel convenient. This also helps the seller to increase the number of customers.
3. Cost savings
To start online selling, you only have to spend low capital and save on rental costs.
Challenges of e-commerce
In addition to the benefits listed above, we can not deny the challenges of ecommerce:
1. Build trust
Different from traditional stores where customers can directly choose before buying, for e-commerce, they often worry about the prestige and quality of products. Therefore, sellers need to focus on building customer trust for their products.
2. Competitors
It is quite late to start an import electronics company at the present time because this field is relatively saturated. Large companies with long experience and great economic potential are reliable competitors. So, to compete in this, you have to keep up with technology, trends, as well as make a stand out in the market.
3. Technical issues
People who are just starting out in e-commerce often don’t have IT expertise. However, technology is an extremely important factor, determining the success of e-comm. Therefore, seeking support from companies that specialize in providing ecommerce web development and construction services is the best solution for your store.
Magetop brings you professional services on building and developing e-commerce websites on Magento 2 platform – the leading platform for E-commerce stores. We will support all you need to create and manage your sales website in the most creative, modern, and effective way.
Thank you for reading!
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