Consider the last few purchases you made. How many of them did you make on the internet? According to an NPR/Marist poll, 69 percent of Americans have shopped online at least once, with 25 percent doing so at least once a month. According to a recent Statista report, the number of digital shoppers in the United States is expected to reach 230 million by 2021.

Many businesses now have an eCommerce presence to meet this growing demand, allowing their customers to make purchases online. You'll learn exactly what an eCommerce system is, its benefits, and how to put it to use in your own business here.

1. What is the eCommerce system?

Eommerce is a business strategy that allows businesses and people to purchase and sell products and services through the Internet. Ecommerce system is handled using computers, tablets, smartphones, and other smart devices in four primary market areas. Ecommerce transactions provide access to nearly every possible commodity and service, including books, music, aircraft tickets, and financial services such as stock investing and online banking. As such, it is seen as a highly disruptive technology.

1.1. Recognizing Ecommerce

As previously said, an ecommerce system is the act of purchasing and selling tangible goods and services through the internet. It entails more than one party as well as the exchange of data or cash to complete a transaction. It is a subset of the larger sector known as electronic business (ebusiness), which encompasses all of the operations necessary to run a business online.

By providing cheaper and more effective distribution channels for their products or services, ecommerce has assisted enterprises (particularly those with a limited reach, such as small firms) in gaining access to and establishing a larger market presence. Target (TGT) has augmented its physical presence with an online store that allows consumers to buy anything from apparel and coffeemakers to toothpaste and action figures from the comfort of their own homes.

Ecommerce system is present in all four of the key market segments listed below. They are as follows:

  • Business-to-business (B2B) refers to the direct selling of goods and services between companies.

  • Business-to-consumer (B2C) sales involve transactions between firms and their customers.

  • Consumer to consumer (C2C), which allows individuals to sell to one another, typically via a third-party site such as eBay.

  • Consumer to business(C2B), which allows people to sell to corporations, for example, an artist selling or licensing their artwork for use by a corporation.

Providing products and services is not as simple as it may appear. It necessitates extensive study about the items and services you desire to sell, the market, audience, competitors, and predicted business expenses.

Once it is established, you must choose a name and establish a legal structure, such as a company. Set up an ecommerce site with a payment gateway next. A small company owner who owns a dress store, for example, might put up a website to promote their clothing and other relevant items online and allow clients to pay with a credit card or using a payment processing provider, such as PayPal.

1.2. Special Considerations

Ecommerce system has altered the way people purchase for and consume goods and services. More and more individuals are using their computers and smart devices to order things that may be quickly delivered to their homes. As a result, it has shifted the retail scene. Amazon and Alibaba have grown in popularity, compelling established merchants to modify the way they do business.

But that's not all. Individual merchants, not to be outdone, have increasingly engaged in e-commerce transactions via their own personal websites. And digital marketplaces such as eBay or Etsy function as exchanges where a large number of buyers and sellers come together to do business.

1.3. The Evolution of E-Commerce

Most of us have shopped online for something at some point, which means we've participated in ecommerce. As a result, it goes without saying that ecommerce system is prevalent. However, relatively few people are aware that ecommerce has a long history that predates the internet.

Ecommerce dates back to the 1960s, when businesses established an electronic technology called Electronic Data Interchange to simplify the transmission of papers. However, the first transaction did not take place until 1994. This entailed the selling of a CD between friends using NetMarket, an online shopping platform. 

Since then, the industry has seen several changes, resulting in a tremendous lot of evolution. Traditional brick-and-mortar stores were compelled to adopt new technologies in order to survive as companies such as Alibaba, Amazon, eBay, and Etsy became household names. These businesses established a virtual marketplace for products and services that customers may readily access.

People are finding it simpler to purchase online as technology advances. People may connect with companies via smartphones and other devices, as well as by installing applications to make purchases. The advent of free delivery, which lowers customer expenses, has also contributed to the ecommerce systems growing popularity.

1.4. The Benefits and Drawbacks of Ecommerce

E-commerce system provides the following benefits to customers:

  • Convenience: E-commerce is available 24 hours a day, seven days a week.

  • Increased product selection: Many shops provide a broader range of items online than they do in their physical locations. Furthermore, many online-only companies may offer customers exclusive goods that is not accessible anywhere else.

However, there are several disadvantages to using ecommerce websites. The drawbacks are as follows:

  • Customer service is limited: If you buy a computer online, you cannot simply ask an employee to show the characteristics of a certain model in person. And, while some websites allow you to talk with a staff person online, this is not a common practice.

  • Lack of quick gratification: When you buy something online, you must wait for it to be transported to your home or workplace. However, e-tailers such as Amazon make the waiting game a little less unpleasant by providing same-day delivery as a premium option for select purchases.

  • Inability to touch things: Because online photographs do not always represent the entire story of an item, e-commerce system purchases can be unpleasant when the products acquired do not meet consumer expectations. As an example, a piece of apparel may be constructed of a shoddier fabric than its web appearance suggests

2. What are the Resources required for the successful implementation of e-commerce?

 With the introduction of the Internet, entrepreneurs now have the potential to start small enterprises with low overhead. He no longer needs to rent a storefront or professional office space. The need for a big sales crew is no longer necessary. He may sell his items online and conduct all marketing, customer support, and fulfillment chores autonomously from wherever he chooses, even his own house. However, before you open your doors, there are a few things you'll need to get the business off the ground.

2.1 Computer System

Because the Internet is the foundation of e-commerce systems and the computer is the medium of transaction, the presence of a computer system is the first need of e-commerce. By tapping the computer's keys, you may connect to the Internet. On the computer screen, the commercial transaction under e-commerce may be observed.

2.2 Internet Connection

An Internet connection is required to execute e-commerce transactions. We may receive this Internet connection while sitting at home thanks to Private Service Provider firms.

When we connect to the Internet, the service provider instructs us to install the Web Browser. It regulates e-commerce activity. The Web Browser is what gets us into the world of e-commerce. (A browser is a software that allows us to view or read content on the Internet.)

2.3 Technically Qualified Workforce

The company must have technically qualified employees who can deal with computer networks and the Internet without difficulties.

2.4 System of Receiving Payments

The firm must have a foolproof mechanism in place for accepting payment for the items sold. The company must make arrangements with banks, credit card companies, and other organizations to support electronic receipts and payments.

2.5 Well-Designed Website

To effectively connect with consumers and others, the firm must have a complete website. The information must be thorough and hyperlinked, with appropriate supporting images and so forth. (A hyperlink is a location within an electronic document on a computer that connects to another electronic document.). 

2.6 Effective Telecommunication System

An efficient telecommunications system is required for the successful adoption of e-commerce. If telephone lines are regularly disconnected, e-commerce system will fail.


E-commerce system is a significant element of the economy and is critical for businesses who offer their products or services online. The E-commerce system allows firms to access a larger number of clients than conventional retail. It is the fastest-growing retail market because to the large number of consumers who make their purchases online.

According to statistics, 96 percent of Americans with internet access have made an online purchase. E-commerce provides consumers with a more convenient option to shop for the items or services they require without having to visit a retailer's physical location.

Ecommerce is only one aspect of establishing an online business. While the latter refers to the complete process of conducting business online, ecommerce merely refers to the selling of products and services via the internet. Giant Ecommerce systems such as Amazon, Alibaba, and eBay have transformed the retail sector, compelling big, conventional merchants to modify their business practices. If you're thinking of creating an ecommerce site, make sure you do your homework beforehand. And, to guarantee that you have room to expand, begin with a modest, restricted focus.

Rose Helen

Shop Owner