What is Ecommerce?

Written by Alex Harris

Overview about Shopify Ecommerce

Ecommerce is short for electronic commerce and simply refers to economic activities that take place over the internet. All types of business activities that are carried out online such as banking, retail shopping, rentals and investing are included in ecommerce. Small businesses are also beneficiaries of ecommerce through the ecommerce websites that they set up to market their products and services.

Benefits of Ecommerce

The numerous benefits that come with ecommerce include the following;

Convenient for Shoppers

Ecommerce is so beneficial when it comes to shopping convenience. Instead of walking from shop to shop, a shopper can explore multiple shops with few clicks in order to buy what he needs and land the best possible deal in terms of price. Besides, the cost of going from store to store is virtually eliminated with the introduction of ecommerce. Best of all, you are sitting behind your computer and in the comfort of your home to visit as many stores as possible, including the stores outside of your locality.

Cost Effectiveness for Businesses

At the onset, ecommerce required cost-intensive interface as well as personal security certificates, but things have changed now. There are now numerous hosting services offering virtual storefronts. In addition, tons of other providers offer wide varieties of ecommerce solutions, including solutions that suit operators with little or even no online experience. The hosting servers now come with in-built tools required to run successful ecommerce sites. In return, individual merchants no longer have to redesign the wheel. Some of those in-built tools include sales and inventory logs, virtual shopping carts, plus enabling shoppers to use their preferred payment methods such as PayPal and credit card.

Best Possible Prices

Another great advantage of ecommerce is increased competition among businesses, which in turn results in best possible prices. Besides, lower prices are influenced by elimination of several business running costs (employee salaries and overhead expenses) that characterize a conventional business. It costs little to operate an ecommerce website. Ultimately, prices of goods and services offered via ecommerce websites are lower.

Other promoters of lower price for ecommerce businesses include using software programs to handle transactions instead of humans. However, shipping may add up to the cost saving that comes with online shopping. Even when the seller offers free shipping, the shipping price has been calculated into the product price most times. So, a consumer should also put shipping cost into consideration when calculating whether the price of an item is the best it can be. So, for these numerous cost savings on the part of ecommerce business operators, shoppers are able to enjoy the best possible price than they can get from conventional stores.

Greater Security

At the onset of ecommerce, security fears gripped a lot of people as identity theft was a common thing those days. Thanks to better technology, millions of people from across the globe can now shop online without being afraid of identity theft and other online fraudulent acts.

Besides, credit companies even made it easier by guaranteeing that no cardholder will bear the burden of fraudulent charges associated with online shopping. As a result of all of these benefits, e-commerce has become a flourishing industry.

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