The Basics Of E-Commerce

E-commerce is defined as the online dealing of business, linking a vendor or seller and a purchaser. Various products and services are being offered, but it’s key cornerstones is that the interactions, deal sign-ups and the payment processes happen online. According to www.searchcio.techtarget.com, e-commerce can be split into the following:

E-tailing or “virtual storefronts” on Web sites with online catalogs

Use of demographic data through Web contacts

Electronic Data Interchange (EDI)

Business-to-business purchasing and trading (B2B)

An important facet of e-commerce is online shopping. Online shopping was actually started by Michael Aldrich in 1979. E-commerce has made a foothold in the today’s world. Almost in each corner of the globe, people have recognized the increasing significance of e-commerce. It gave rise to electronic funds transfer, supply chain management, internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.

1. Electronic funds transfer – is the computer-based systems that are utilized to do electronic financial transactions.

2. Supply chain management – is the management of interconnected businesses involved in providing products and services to consumers.

3. Internet marketing – is simply put, the selling of products over the Internet.

4. Online transaction processing – is employed to facilitate and manage transaction-oriented applications through data entry and processing.

5. Electronic data exchange – this is the transmission of data among companies or organizations over electronic means.

6. Inventory management systems – it is electronically tracking objects or materials through the use of barcodes, or other automatic identification for the inventory of objects.

Electronic commerce conducted among business is generally named B2B or business-to-business. Meanwhile, electronic commerce conducted between businesses and consumers is called B2C. E-commerce in reality falls under the umbrella of e-business and also covers data exchange for the facilitation of the financial and payment part of business deals and transactions.

Discover more about E-Commerce principles and how you can boost your Company Sales with different Online Marketing strategies.