Ecommerce covers all business transactions done over the internet, such as buying, selling, marketing and promoting. A lot of new and existing businesses are entering eCommerce, and experts believe that online trade will eventually surpass brick-and-mortar stores in the future. But eCommerce is not as simple as putting up a website and promoting your business. It requires skill, knowledge and at least a bit of computer savvy. Here are some of the things you need to know about eCommerce.

A Brief History

Ecommerce originally referred to any business aided with electronics – in its strictest sense, even the use of calculators will qualify a business as eCommerce. In the 1970s, the term narrowed to commercial transactions themselves, aided by technologies like Electronic Funds Transfer (EFT) and Electronic Data Interchange (EDI). Credit card and ATM transactions were introduced in the 1980s. It was only in the mid-1990s that the word became associated with internet trade.

During the dotcom bubble from 1995 to 2001, the more appropriate term “web commerce” was introduced, and eCommerce expanded to the consumer level. Today, eCommerce allows people to get just about anything online, from tissue paper to housing loans.

Getting Started in eCommerce

Although anything can be sold online, some products benefit from eCommerce more than others. If you’re thinking of doing online business, you need to decide whether your product is better sold online or offline. So far, digital products such as software, music, electronic documents and web services have had the most success. This is because there are no shipping charges and buyers get their purchases immediately. With tangible products, you have to charge for shipping and your buyers have to wait days or weeks to receive your product.

Succeeding in eCommerce

Successful eCommerce relies on two factors: organisation and customer orientation. Online selling doesn’t stop at a good product – your first concern should be getting known. No matter how good your product is, no one will buy it if it’s unheard of. Promote your product through advertisements, marketing email and maybe even some PR work.

This is where customer orientation comes in. Online business works much like the traditional – it requires research, planning and customer management. You can’t just email anyone and tell them to buy your product. Market research will let you determine your target market, how to reach them and what promotional methods will work best.

Ecommerce Security

Security is one of the most common concerns in eCommerce. Many customers are uncomfortable submitting credit card details for fear of getting hacked. Fortunately, there are several services you can use to secure your transactions. These include Secure Sockets Layer (SSL) and the newer Transport Layer Security (TLS), which will encrypt all the data you send and receive online. An SSL or TSL protection stamp on your site will make customers more comfortable buying from your site.