How Does e-Commerce Work?

By Gigi Starr

1.   What is e-Commerce?

o    According to the Cisco investor's site, e-Commerce is defined as "when a person or business uses the internet as part of their business model." This may include selling products online, maintaining a business blog or delivering products electronically.

Commonly, e-Commerce refers to some aspect of retailing online. A company may use various business tools to sell products, ship and consult with clients. In short, e-Commerce combines the Internet and money in the best combination possible to maximize sales.

source: https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiDMCpJonnw5aN3NjddXTcKq_yYRBBilFOG5czAsOc_LjUkH71XczMnIS7vnHJTACdyH8wA_EGldQGu6Wraynx_mGNkddqLxNAGd63y3hYZJjIHyAKn7cZmxkp8DDR4Q7XdO8PRJQO1g5c/s320/e-comm.jpg

2.   What Do People Use For eCommerce Businesses?

o    eCommerce businesses are built in several different ways. Some companies opt for bare-bones platforms such as Zen Cart or OS Commerce, while others pay a monthly fee for Yahoo! or Ebay Stores.

Another popular method is to outsource programming and planning to firms in the United States and abroad; many small business owners prefer to hire freelance labor from sites such as Elance to take care of the nitty-gritty details such as graphics, corporate identity, copywriting and platform tweaking.

A prime concern is payment processing. These days, many banks offer online credit card and check processing. The biggest and most well-known payment service, PayPal, handles all of these for clients through a number of available merchant programs. Amazon and Google, however, have entered the playing field with competing services. This has enabled merchants to offer choices to clients, which means more sales.

3.   Why is eCommerce Important?

o    According to the U.S. Census Bureau, 2008 third quarter eCommerce spending totaled $34.4 billion. On average, sales on the Internet have been on the rise. In industries such as music and publishing, electronically transmitted products are making huge waves.

Businesses that extend their platform to include the Internet are marketing to an audience that is bargain savvy and discerning about their purchases. People know that they can find many items easily online, and often take advantage of free shipping deals for volume sales. This means more money for retailers with lower overhead and quality goods for the consumer. eCommerce is a sector of retail that seems aimed for healthy future growth.

Source: http://www.ehow.com/how-does_4673037_ecommerce-work.html#ixzz1IeV4sOPQ