Electronic commerce, or e-commerce, refers to the buying and selling of goods and services over the internet. It includes any commercial transaction that takes place online, from buying a book on Amazon to signing up for streaming services like Netflix. E-commerce encompasses a wide range of commercial activities, including online retail stores, auctions, financial services, and more.
A brief history of e-commerce
E-commerce began to gain popularity in germany mobile number list the 1990s with the rise of the Internet. In 1994, the first secure e-commerce transaction was made, marking the beginning of a new era. With the founding of Amazon in 1995 and eBay that same year, e-commerce began to expand rapidly. Today, e-commerce is a trillion-dollar global industry that continues to grow at a rapid pace.
Fundamental concepts of electronic commerce
To understand how e-commerce works and its impact on the global economy, it is crucial to familiarize yourself with some key concepts. Here are the most important ones:
Online store
An online store is a website that allows consumers to purchase products or services directly from the internet. These stores typically feature a digital catalog, shopping cart, and online payment options. An iconic example is Amazon , which began as an online bookstore and now offers millions of products worldwide. Another notable platform is Etsy , which allows artisans and creators to sell their products on a global marketplace.
Shopping cart
The shopping cart is a crucial feature on any e-commerce site. It is a software that allows customers to select and store products they wish to purchase before proceeding to checkout. One example is the Shopify shopping cart , which facilitates the shopping experience on thousands of online stores. Shopping carts also offer features such as calculating the purchase total, applying discount coupons, and estimating shipping costs.
Payment gateway
A payment gateway is a service that processes online payment transactions. It acts as an intermediary between the customer and the merchant, ensuring that the payment is made safely and efficiently. For example, PayPal is one of the most popular payment gateways that allows users to pay securely using their bank accounts or credit cards. Another example is Stripe , which is widely used by e-commerce companies to process payments worldwide.
Mobile Commerce (M-commerce)
Mobile commerce, or m-commerce, refers to the buying and selling of products and services through mobile devices, such as smartphones and tablets. One example is the AliExpress mobile app , which allows users to purchase products directly from their phones. According to Statista , in 2021, more than 70% of e-commerce sales worldwide were made through mobile devices.
User Experience (UX)
User experience (UX) is a fundamental aspect of any online store design. It refers to how easily a customer can navigate a website, find what they’re looking for, and make a purchase. A good example of UX is Apple.com , where navigation is intuitive, the design is appealing, and product pages are optimized for mobile. Improving UX is crucial to increasing conversion rates on any e-commerce platform, as Nielsen Norman Group explains .
Personalization
Personalization in e-commerce refers to the ability to tailor the shopping experience to each individual user. Using data such as purchase history, browsing behaviors, and preferences, online stores can offer personalized recommendations, targeted promotions, and relevant content. One example is Netflix ’s recommendation system , which suggests movies and series based on user preferences. Personalization is key to increasing customer loyalty and sales, as detailed in this McKinsey article .
SEO (Search Engine Optimization)
SEO, or search engine optimization, is the process of improving a website's visibility in Google search results and other search engines. In e-commerce, SEO is vital to attracting organic (non-paid) traffic to an online store. A successful example of SEO is Moz , which offers tools and resources to optimize website SEO. This involves optimizing product pages, creating relevant content, and making sure the website follows SEO best practices.
Digital Marketing Strategies
Digital marketing strategies are essential to eCommerce success. They include a variety of tactics, such as social media marketing, email marketing, pay-per-click (PPC) advertising, and more. For example, Facebook Ads allows businesses to create highly targeted ads to reach specific audiences. Another popular strategy is email marketing , where platforms like Mailchimp allow businesses to send personalized emails to their customers to increase sales.