The term e-commerce refers to the use of an electronic medium to carry out commercial transactions. Most of the time it refers to the sale of the product via the Internet, but the term e-commerce also covers purchasing mechanisms via the Internet. In a broadcast sense, e-commerce is anything and everything to do with buying and selling products using electronic tools including computers, PDAs and mobile phones. It also has a broad image of sites including major retail chains, small local stores, web-only stores and individuals selling on aggregate sites such as Shopify.
E-commerce is powered by web-based programs commonly called E-commerce Software or Shopping Cart Software. Most e-commerce sites are online stores which should have the following elements at the front-office level. First is an online electronic catalogue listing all products price for sale. Next is a search engine which makes it possible to locate a product easily via search criteria.
Another element is the heart of the e-commerce, which is the virtual caddy that makes it possible to trace the purchases of the client along the way and modify the quantities for each reference. However, the most important part would be to secure online payment and an order tracking system. A secure online payment is often secured by a bank via a secure transaction. On the other hand, an order tracking system allows tracking of order processing and provides information on pick-up of the package by the shipper.
When you consider what’s involved, it’s helpful to look at the two different ways people deal with e-commerce. First is the customer’s point of view. For a customer, e-commerce is all about finding and ordering the right products. Second is the merchant’s point of view. For the merchant, it’s a lot more complexed. There are several things you have to consider and third-parties such as carriers and payment processors you have to work with.
Here are just a few of the thing you will need to think about.
1.Creating and managing a product catalogue.
2.Drawing potential customers to your store.
3.Taking orders from customers.
4.Being notified when customers place orders.
5.Accepting and processing customer payments.
6.Charging appropriate tax on orders.
7.Shipping ordered products.
8.Calculating and charging shipping rates.
9.Protecting your store from hackers.