E-Commerce Website Definition



An e-commerce website, by definition, is a website that allows you to buy and sell tangible goods, digital products or services online. Trade, be it barter exchange or buying and selling of goods and services has been prevalent for centuries. No one can be self-sufficient. And this brings out the need for demand and supply of goods and services. Transactions have been going on all over the world for centuries, locally, and across locations. Keeping the same concept in mind, now think electronic. However, also bear in mind that with the whole world going online, data privacy laws have become increasingly stringent. And before you begin, an eCommerce venture you should be aware of all the legal policies required for your eCommerce website.

What is E-Commerce?

E-Commerce, also known as e-Business, or electronic business, is simply the sale and purchase of services and goods over an electronic medium, like the Internet. It also involves electronically transferring data and funds between two or more parties. Simply put, it is online shopping as we commonly know it. E-Commerce started way back in the 1960s when organizations began to use Electronic Data Interchange (EDI) to transfer documents of their business back and forth. The 1990s saw the emergence of online shopping businesses, which is quite a phenomenon today. The first-ever online purchase was a Sting CD, sold by US retailer, Net Market on 11 August 1994. It has become so convenient and easy, that anyone can shop for anything right from a living room, with just a few clicks. This has evolved more with the emergence of smartphones, where now, you can shop from anywhere and anytime, with a wireless device connected to the Internet. Now you can search for almost any product or service online, without having to go anywhere physically. “In 2020, eCommerce sales are expected to account for 15.5 percent of retail sales worldwide.”

What is an E-Commerce website?

E-Commerce websites are online portals that facilitate online transactions of goods and services through means of the transfer of information and funds over the Internet. In the early days, e-commerce was done partially through emails and phone calls. Now, with a single website, anything and everything that a transaction needs, can be executed online.

Types of E-Commerce websites
Different eCommerce websites are labeled or referred to differently, based on the function they fulfill.
Business-to-Business (B2B): Electronic transactions of goods and services between companies. Example: A business sells SAS products to other businesses.
Business-to-Consumer (B2C): Electronic transactions of goods and services between companies and consumers. Example: You buy a new t-shirt from an online store.
Consumer-to-Consumer (C2C): Electronic transactions of goods and services between consumers, mostly through a third party. Example: You sell your old smartphone on eBay or Olx to another consumer.
Consumer-to-Business (C2B): Electronic transactions of goods and services where individuals offer products or services to companies. Example: A Social media influencer offers exposure to their online audience in exchange for a fee.

How does eCommerce work?

eCommerce is nothing but a type of commerce. Its functioning style is quite similar to that of the physical retail industry. The only difference it has with a brick and mortar store is that here, the entire process takes place online. The journey of an eCommerce firm begins with setting up an eCommerce website. It is usually done with plugins like WooCommerce. After that, the products are displayed along with necessary details like product descriptions and price tags. A CTA button like “Buy Now” is placed near the products for the convenience of the customers. If they feel like buying a product they can simply click on the button and make the payment. Customers are usually asked to place their orders by filling up a form. There, they need to provide all the necessary details like the delivery address. There are different payment methods used in the eCommerce industry.

Buyers either can make the payment through a payment gateway like PayPal or they can use their credit cards. There is another option called COD or cash on delivery.

This is mainly preferred by senior customers. In this option, the buyer makes the payment when the item they ordered is delivered on their personal address.

The payment can be made either in cash or through cards or other convenient options like Google Pay. If you are not happy with the quality of the product or mistakenly a different product gets delivered to you, you can use the reverse logistics system. It is simply returning the items and getting the money back. You need to notify that you want to return the product you ordered. A representative of the company will come to you and take the product back.

The money will be cashed to your account. The product promotion in eCommerce is also done digitally. The two most prominent methods are a digital advertising and email marketing. Ads are placed on the social media platforms which are most preferred by the target groups. All visitors are asked to provide their email addresses. Based on that an email list is prepared. After that personal emails are sent. Sometimes personal notifications are also sent to the social media accounts of the prospect costumes.

Top E-Commerce websites
These are some of the most popular examples of eCommerce websites across the world (in no particular order) –
  • Amazon
  • eBay
  • Alibaba
  • Taobao
  • Walmart
  • Whatsapp.shop

How to build an E-Commerce website?
Selling products through an online shop is the best way to make a bit of extra money. Through an eCommerce website, you can easily introduce your products to a large number of customers at once. There are so many benefits of eCommerce websites over physical shops. And that is the reason why many traders are inclined to take their business to the next level by creating an eCommerce website. You don’t need to be a tech geek to build a website for your business. Alternatively, you can hire dedicated developers that will help you with your eCommerce website creation. Also, you can easily create your own eCommerce website with the help of various eCommerce platforms. Ecommerce platforms are the quickest way to build an eCommerce website. Below are some of the top eCommerce website builders which you can consider for developing your eCommerce website.
E-Commerce Website Legal Requirements
Before you even launch your e-commerce website, you need to make sure it is legally compliant with the data privacy laws that are applicable to your audience’s region. GDPR and CCPA are the two of the first regulations that directly impact data collection, use, and storage on a widespread scale. Below are some of the policies which you need to set up on your eCommerce website
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