The Definition of E Commerce

or How Do You Define Success in the Current Economy

What is the definition of e commerce?

E commerce is the the combination of online buying and selling of goods and services, paperless electronic funds transfers. It is also known as electronic commerce, EC, e-tailing, and e-business. E commerce can be faster, more economical for both clientele and seller and green. At some levels it involves the integration of brick and mortar with the virtual world of the web. It makes a truly virtual business possible.

It is possible to extend the definition of e-commerce to include researching products, services, education, and health care management online. The definition of e commerce dose not always mean collecting money from visitors. Some do business without purchasing anything and yet money is made.

As you read about the definition of e commerce, you will notice that it works in both business to business and business to public. It embraces new concepts of marketing like preselling, product launch or Podcasting and webinars.

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The definition of e commerce is broad as there are many different forms of e commerce. This is because there are many different channels (portals or avenue of service) for customers to become consumers.

The year 1991 was the birth of the definition of e commerce when the Internet was opened to commercial use. Within the past few years, the 100 million web site threshold was surpassed. Of course not all are internet based businesses. But those who use the internet for purchases is make up a large and diverse market.

As of December 2008, 74% of adults use the internet. The 18-29 year old is the highest using age group. Interestingly of those 50 to 64 age group, 72 percent use the internet.

At least 66 percent of internet users have purchased something on the internet.

Check out the actual Pew Internet Study and see the other demographics of internet users.

Off line direct mail marketing historically has a 2% return. One of the advantages of e-commerce is as high as 38% conversion of customers into happy purchasing customers.

Success is dependent on committing to an internet business model. The website becomes the life of the of the business.

Many businesses have taken the same attitude as at the time of the invention of the telephone. Back then, many businesses could not see the value of the telephone. Yet today, how many businesses would or even could operate with out some kind of telephony.

The internet is the new telephone. It allows for communication on new ways and levels. It allows communication from business to customer, customer to business and customer to other customer and potential customer. The internet makes possible this kind of viral marketing.

Similar to brick and mortar businesses, e-businesses need to have a product or service. Unlike a brick and mortar business, the website is a combination of store front, marketing, advertising, customer service portal, information services, and place of purchase.

Unlike brick and mortar retail business where you can walk in and purchase, most products need to be ordered and shipped. One unique exception is e-zines, information services, graphics, photos and e-books.

When the information can be produced in some form of electronic format, then the purchase can be made on the spot. No driving to a business location, no waiting on a teller or customer service, no gas in the car, no auto insurance, no umbrellas and with the exception of a few bad eggs, no problems (hopefully).

There is usually some kind of on line form where information is provided to make the purchase.

Payments are made though electronic connections over secure connections and specialized accounts that accept payments for these.

There is some additional education required to learn the process of operating this aspect of the business. For those new to e commerce, a much easier way to get started involves services that handle the collection and refund process for you.

No doubt you have heard of PayPal and Click Bank, two examples of how this newbies can get started with very little risk and a very easy learning curve.

With the payment in hand, the next most important step is fulfillment. This requires shipping to the customer.

There are businesses that specialize in just this. Most MLM businesses are set up on this model.

In e business, there are numerous business models that have the fulfillment built in. One example is affiliate marketing. Unlike MLM, no purchase is required. The e business acts as preselling agent and the mother company handles all of the fulfillment.

Some companies like ClickBank likewise handle all the money and fulfillment, even lining up affiliates to sell your electronic product for you.

Barter Trade is the newest kid on the block for e-commerce payment method.

Barter Trade through a broker is going to take barter trade payment to a new level. Now sales can be made and payments are made in barter trade dollars. So you may sell your ware here and spend them there, in Spain or Anguilla Beaches. Because this is through a broker, there is no need to sell and buy at the same time.

E-tailing Business Models

There are numerous business models. Each with their own e commerce marketing strategy. Here are a few.

Virtual storefronts

On line catalogs

Virtual Malls

E-Mail marketing

This involves an opt-in feature to eliminate the risk of inadvertently spamming and facing a lawsuit of loss of internet privileges.

The e-mail, news letter or other electronic information usually will have some sort of profit center component. It can be in the form of advertising, sponsors, or preselling a product. Some actually sell subscriptions to their e-zines.

Business to business selling

Information sales

Consulting

Web services

Web hosting

Web site design

Web site search engine optimization

Web site social optimization

Web based information services (formerly called public relations)

Marketing

Market research

Companies can gather considerable amounts of data companies on their prospects and customers in through site registration, questionnaires, and as part of taking orders.

Direct response advertising Customer relationship management

There is much more to be said on the definition of e commerce. This should provide a primer. In time, more will be included in this definition of e commerce page. Please return for updates.

More Definition of E Commerce at Website Building Concept

Credit Cards and What You May Not Know.

Make Your Site Sell a free e book to say thank you for visiting and further explain the definition of e commerce.

The Keyword Search Tool Registry is a good basic tool. It has a few limitations.

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