What is ecommerce? • ui42.com

What does it mean

E-commerce or electronic commerce, is a type of trade that takes place over the internet. These businesses allow customers to purchase and order products or services online without the need for physical contact with the seller.

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E-commerce refers to all processes where business transactions are conducted online. Automated processes of traditional sales of goods and services via the internet also include marketing activities, customer communication, customer service provision, distribution, payments, and various other aspects of business management conducted without personal contact.

E-commerce - electronic commerce

Electronic commerce (E-commerce) encompasses not only trade and sales but is also part of e-business, forming its subset. Within e-commerce, we focus not only on buying and selling but also on marketing activities, customer communication, product service provision, and distribution channel management. Important aspects of e-commerce also include search engine optimization (SEO) and advertising systems such as PPC or PPA. Although e-commerce is often associated with online stores, it also includes topics and tools of online marketing, such as newsletters, PR articles, or viral marketing.

Custom e-shop as an e-commerce solution

Custom e-shop represents a specially tailored solution in the field of electronic commerce. It is a unique online store designed and developed to meet the specific requirements and needs of the client. Such a built e-shop can provide exactly the functions and options that are relevant and effective for the given business and its customers. A custom e-shop may include specific design elements, unique features, optimization for a specific type of goods or services, and other functional or visual customizations according to the client's individual requirements.

Online store and e-commerce

An online store is a general term that refers to any business environment on the internet where customers can shop through websites or mobile applications.

E-commerce (electronic commerce) is a broader term that includes all forms of trading through electronic media. This can include not only online shopping but also electronic exchange of information and services between companies and their customers, B2B (business-to-business) transactions, and other forms of electronic business.

Overall, an online store is a specific case of e-commerce that focuses on the online sale of goods and services. However, e-commerce can encompass a broader spectrum of activities associated with electronic trading.

How to build a functional e-commerce project?

What are the main advantages of e-commerce?

The reason why electronic commerce is popular not only among sellers but also customers are the advantages it includes compared to traditional contact sales.

Availability 24/7, without opening hours -One of the biggest advantages of e-shops is that stores are available 24/7. Customers can shop at any time regardless of opening hours and the need for the e-shop owner to provide sales support.
E-commerce has a global reach -Electronic commerce allows sellers to reach customers worldwide. This opens up huge opportunities for expansion, scaling, and subsequent sales increase.
E-shops have lower operating costs -Compared to traditional brick-and-mortar stores, e-commerce eliminates costs for renting and maintaining premises, some employees (salesperson), and various other operating costs.
E-commerce opens the way to personalization -Thanks to data and various e-commerce tools, e-shops can collect data about customers and their shopping behavior. On one hand, this offers the possibility to improve their user experience and personalize the offer of services/products. On the other hand, it is an opportunity to monitor, evaluate, and consider your next marketing strategy based on that.
Shopping through e-shop is convenient and fast -The popularity of e-commerce has a long-term tendency to grow. Thanks to comparators, customers can choose the most suitable price or delivery option without leaving the comfort of their home. Increasingly convenient payment options and faster delivery significantly contribute to e-shops and other e-commerce platforms securing a stable place within sales channels.

How to succeed in e-commerce

Set Clear Goals: Define your goals and expectations. Set what you want to achieve in the short and long term.
Market and Target Group Research: Research the market and identify the target group for your product or service. Carefully monitor competitor behavior and draw inspiration from their successes and failures.
Create a Quality Product or Service: A quality product or service forms the basis of your success. Paying attention to details and providing value to customers can create a loyal clientele.
Create a Functional and Attractive Website: Your website is your digital store. Ensure it is easy to navigate, aesthetically appealing, and optimized for search engines.
Implement Secure and Simple Payment Options: Provide secure and convenient payment options for customers. Security and simplicity are key to trust.
Marketing and Promotion: Spend time developing a marketing strategy. Use digital channels, social media, and other forms of advertising to attract customer attention.
Get Feedback and Adapt: Actively communicate with customers, collect feedback, and use it to improve your business. Be prepared to adapt to changing market needs.
Develop Customer Relationships: Build relationships with customers by providing excellent customer service. Loyal customers are often the best form of promotion.
Develop Gradually: Do not chase large profits immediately. Develop your business gradually, learn from each phase, and adjust your approach based on gained experiences.
Be Flexible and Innovative: The e-commerce market is dynamic, so it is important to be flexible and open to innovations. Follow trends, update your practices, and do not be afraid to experiment with new ideas.

What models of electronic commerce do we distinguish?

E-commerce (electronic commerce) is a broader term that includes all forms of trading through electronic media. This means not only online shopping (online purchases via e-shop, web, or mobile application) but also electronic exchange of information and services and other forms of electronic business. Within e-commerce, we distinguish these models:

B2C (business-to-customer)

Sale of goods or services directly to end customers.

B2B (business-to-business)

Trade between companies, where one company sells products or services to another company or individual for their further sale.

C2C (customer-to-customer)

Online platforms where consumers can sell goods and services to other consumers, such as online bazaars and similar.

What factors influence the success of e-commerce business?

Just like in traditional contact business, competition in the e-commerce market is high. To be successful in online business, it is necessary to focus on these basic pillars:

Technology -An efficient e-commerce platform, and thus a fast and user-friendly sales tool, functional infrastructure, and secure payment systems are the best pillars of a successful e-commerce business.
Data -Data about customers, their shopping behavior, and other important numbers are valuable assets that you can use to evaluate your online activities and plan further.
Customer Care -Prompt customer support and a clearly defined communication strategy help build trust and customer loyalty.
Brand Building and Online Marketing -Well-targeted performance marketing, search engine optimization, and brand building are tools to attract new and retain loyal customers.
Trustworthiness and Security -Securing transactions and protecting personal data are essential for compliance with legislation and also for gaining customer trust.