Introduction to E-Commerce

E-commerce is defined as the online dealing of business, connecting a vendor or seller and a purchaser. Various products and services are being offered, but it’s foundations is that the interactions, deal sign-ups and the payment processes happen online. As reported by www.searchcio.techtarget.com, e-commerce can be divided into the following:

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

Utilization of demographic information through Web contacts

Electronic Data Interchange (EDI)

Business-to-business buying and trading (B2B)

key facet of e-commerce is online shopping. Online shopping was actually developed by Michael Aldrich in 1979. E-commerce has made a foothold in the today’s world. Nearly in every corner of the globe, people have acknowledged 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 execute 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 marketing of products through the Internet.

4. Online transaction processing – is employed to facilitate and oversee 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 monitoring objects or materials through the use of barcodes, or other automatic identification for the inventory of objects.

Electronic commerce carried on among business is most commonly called 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.

Find out more about E-Commerce principles and how you can increase your Company Sales with different Online Marketing strategies.