What You Should Know About eCommerce?

The common definition of commerce is that this is the exchange of goods and services for something of value, such as money. It is basically the buying and selling of items. This is true for eCommerce but with a twist since this is any business transaction done online. This is made possible through technology, as more people can connect easier wherever the location. In fact, through this people can now shop online. This is now an advanced tool used by many businesses and many eCommerce sites are taking advantage of the technology.

But did you know that this was first utilized to facilitate business transactions? It was used in Electronic Funds Transfer and Electronic Data Interchange. Transaction documents such as purchase orders and sales invoices were sent electronically in the early part of the adoption of the technology.

Products covered in eCommerce

eCommerce is now commonly used in the transfer not only electronic content but also physical products and services. Majority of eCommerce transactions revolves in the distribution of digital products. Digital music, video streaming, software and eBooks are bought and sold electronically using the internet. Physical versions of these products such as compact discs, DVDs and books can also be ordered on many websites. In short the eCommerce is the sales portion of an e-business. Under these transactions, there’s an exchange in data.

There are a number changes and services pushed by eCommerce providers including merchant services. Thanks to this, small businesses can now start selling online easily. Managing inventory and processing orders are now easier and does not require any previous knowledge in programming.

Inventory management software is another feature that allows you to add new products, manage existing products and arrange how the products are displayed on your eCommerce site. Other options include selecting other variations of a product such as colour and size and calculation of shipping and handling charges are automated using the shopping cart snippet.

The shopping cart is another major advancement online. It helps customers in making purchases over the internet. Shopping cart marks selected items and place them in a virtual container. After making a selection, the selected products are then placed in a virtual checkout counter. Checking out indicates that the customer has already finished their shopping. The concept is based on actual checking out of items in a department store. It computes the total cost of the products purchased. Computation includes shipping and handling costs and corresponding taxes. Payments are usually collected with credit or debit cards. Some merchants accept the use of a PayPal account to make purchases.

For the average shopper, electronic commerce is just an online shop. For business owners, it’s a tool to further expand the market reach, and the reason why the services of eCommerce consultants are popular.