What is eCommerce?
The word eCommerce was derived from ‘Electronic Commerce’.
It is simply a form of trade, carried out by individuals and organizations through the Internet.
Ecommerce has made it possible for us to purchase or sell goods over the Internet, and a good example is shopping from an online store like; Amazon, eBay, or Aliexpress, etc.
However, eCommerce is much more than online stores, as it also includes other forms such as auctioning off items, Internet banking among others.
The 11th of August 1994 marked a very important moment in the history of Electronic Commerce, as it was the day by which Phil Brandenberger; a man from Philadelphia, successfully purchased a CD worth $12.48 (along with shipment fee) from a seller called Sting, by using the Internet.
This was the first recorded action from which a buyer purchased a product from a seller online, and the website from which the business transaction took place was based in America, it’s called NetMarket.
Ecommerce has made a major breakthrough in the act of buying and selling, and despite its popularity, it is expected to gain more popularity than it has currently been.
Now, let’s get to know why eCommerce became so popular, and if there’s anything that made it different from the conventional methods of trading.
Why is it So Popular?
The E-Commerce industry is expanding across all of its edges, as people are always on the lookout for easier ways to do trade.
Technology has brought us easier ways to do things right from owning and managing our companies virtually, to placing product and service orders without actually getting to see who we’re dealing with, in real-time.
As a result, this has become a multi-billion dollar industry and those who harness its power and convenience to start their own businesses with it like Amazon, are reaping the benefits and becoming multi-billion dollar companies.
Below, we’ve outlined some of the benefits of eCommerce, which made it a popular choice to people across different ages, backgrounds, financial statuses, and locations. These are reasons that have made it an ever-growing and popular means of trading.
- Low Financial Cost: From the merchant’s perspective, the cost of starting an online store or eCommerce business can be as low as less than $100. It’s both very easy and affordable for anyone with a laptop and internet to start their own online business. Some of the ways are explained in detail here. And with dropshipping methods, you can even start your own store with no inventory.
The cost of operating an Ecommerce Store is also very little when compared to owning a physical store because you don’t have to incur major expenses of managing a physical store’s structures or outlets. Some of the main expenses you can expect to incur include the hosting of the website, digital marketing, payment gateway fees, sometimes software and app fees. These costs can be so low that it becomes insignificant compared to running a physical store.
The buyers are also aware of the fact that since the merchant cost of operations is reduced, the cost of the products will also become less expensive and more competitive compared to traditional stores. So most buyers who have understood this will opt to buy online.
- Flexibility: With Ecommerce, a seller may decide to sell products within vast destinations, unlike our brick and mortar stores that usually sell to local buyers. With eCommerce, your potential reach is not limited to a specific geographic location.
Buyers also have the option to procure shipments from far destinations and get the products delivered to their doorsteps.
Buying and Selling via eCommerce methods bring the advantage that trading can take place 24/7, so people can always browse for products and learn more about them before deciding to make a purchase. You as a store owner can make money while you sleep or travel the world.
- Adaptiveness: E-commerce has come to stay, this is because a majority of businesses tend to record higher success rates through it, while customers are also finding it conducive too.
As many brick and mortar businesses are getting out of business during recession periods, the number of electronic stores keep rising. This means that the eCommerce has more potential to acclimatize with current trends and factors.
More and more people are also getting comfortable with the concept of purchasing online as it is becoming more popular which means the market is growing.
- Convenience: eCommerce is a very convenient business model both for the store owner and the customers.
The store owner has the convenience of added time as it takes less work to run a virtual store while as well as the convenience of being able to run and monitor your store from absolutely anywhere as long as you have a computer and internet connection.
For the customer, it is also very convenient because you don’t have to leave the comfort of your home or office to make a purchase of what you want online. You can have orders shipped right to your doorstep with no hustle of going to a physical store.
This is just a tip of the iceberg when it comes to the meaning of eCommerce and why eCommerce is becoming popular among trading partners across the world. Whether you are looking to make passive income or you want to fire your boss, now is the best time to harness this powerful business model and starting your own eCommerce business.
Not sure how to start? Here’s a list of useful resources which will guide you on how to start your own eCommerce business. (CLICK HERE)