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In its simplest form ecommerce is the buying and selling of products
and services by businesses or consumers over the World Wide Web.
People use the term "Ecommerce" or "Online shopping" to describe the process of searching for and selecting products in online catalogues and then "checking out" using a credit card and encrypted payment processing. Internet sales are increasing rapidly as consumers take advantage of
lower prices offered by vendors operating with less margin than a bricks and mortar store
greater convenience of having a product delivered rather than the cost of time and transport and parking of going to a store
sourcing product more cheaply from overseas vendors
great variety and inventory offered by online stores
comparison engines that compare and recommend product
auction sites, where they did for goods
E-commerce can provide the following benefits over non-electronic commerce:
Reduced costs by reducing labour, reduced paper work, reduced errors in keying in data, reduce post costs
Reduced time. Shorter lead times for payment and return on investment in advertising, faster delivery of product
Flexibility with efficiency. The ability to handle complex situations, product ranges and customer profiles without the situation becoming unmanageable.
Improve relationships with trading partners. Improved communication between trading partners leads to enhanced long-term relationships.
Lock in Customers. The closer you are to your customer and the more you work with them to change from normal business practices to best practice e-commerce the harder it is for a competitor to upset your customer relationship.
New Markets. The Internet has the potential to expand your business into wider geographical locations.