What is ecommerce?
Ecommerce (short for electronic commerce, and also referred to as internet commerce or e-commerce) involves the buying and selling of goods or services over the internet. These transactions may include physical products, digital items, or services delivered electronically.
Ecommerce activity takes place via online platforms and spans a range of business models, including:
- B2B (business-to-business)
- B2C (business-to-consumer)
- C2C (consumer-to-consumer)
- C2B (consumer-to-business)
- D2C/DTC (direct-to-consumer)
Many businesses manage their online operations using ecommerce platforms such as Shopify or BigCommerce, which support website hosting, domain registration, checkout systems, inventory management, payment processing, and customer service. Others may adopt a headless commerce approach, which separates the front-end customer interface from the back-end systems, offering greater flexibility and customisation.
Benefits of the ecommerce model
One of the key advantages of ecommerce is its convenience, for both businesses and consumers. Shoppers can browse and buy from anywhere in the world, without needing to visit a physical shop, and businesses can operate around the clock. Ecommerce also offers scalability, allowing brands to quickly adapt to changing market trends, launch new products, and expand into new regions. Online transactions generate valuable customer data, which businesses can use to personalise the shopping experience, improve marketing campaigns, and strengthen customer relationships. This leads to increased brand awareness, loyalty, and often, higher average order values.
Key features of an ecommerce store
A successful online shop must offer a seamless, user-friendly experience. This includes intuitive navigation, efficient search and filtering options, streamlined checkout processes, and full mobile compatibility to support the growing trend of shopping via smartphones and tablets. Additional features such as customer reviews and product ratings help build trust and support purchase decisions. Finally, robust security measures, especially around payment processing, are essential to protect customer data and ensure compliance with regulations.
