Scale Your BusinesseCommerceUnderstanding the Basics of E-Commerce

Understanding the Basics of E-Commerce

For most businesses, understanding what e-commerce is starts with understanding what it can do for them. Many businesses understand the need for a presence on the internet, but are still frightened by the concept of doing business online. However, consumers are increasingly demanding the ability to do their business online. For most businesses to compete they must overcome the hurdle of understanding this new way of doing business, and learn how to make the Internet work for them. There are benefits to taking a business online; it can expand your geographic reach as well as lower costs.

Definition of E-Commerce

E-commerce, put simply, is doing business on the Internet. While the definition is simple, the execution is not always so easy. Many business owners do not understand what e-commerce is. However, understanding e-commerce is necessary to have a successful online business. Building a website where you can display all of your products is only the first step. You must build a user-friendly site, have a safe, secure way to check out, and you must learn to properly market your website.

Types of E-Commerce

There is more than one type of e-commerce, and more than one way this method of doing business can benefit your business. Online retail shopping is one of the most effective ways to help your business grow. Small startups have grown to become successful medium sized businesses doing business internationally, simply because they learned how to market their business online. Other types of e-commerce include electronic payment gateways, which allow you to take money online from your customers and eliminate the uncertainty of checks sent in the mail.

How E-Commerce Benefits Your Business

If there is one thing business owners should understand about e-commerce, it’s how it can benefit their business. Using the internet to do business can streamline how a business owner does business, lower overhead, and eliminate geographical boundaries. Imagine being able to reach more people within the area you do business. But even more important, this method offers you the opportunity to take your business to the international level, if that is what you desire.

The cost of running a website and doing business online is much less than doing business offline. There are fewer staff needed for e-commerce, you have no need of retail space for your online business transactions, and online advertising methods are generally considered far more cost-effective.

Related: The Beginning Steps for Starting an Online Business

Making E-Commerce Work for You

It is important to fully understand what e-commerce is before you can get the most benefits out of it. There are many elements to successfully conducting business online. Too many people think they can have a small website built, attach a shopping cart program to it, and then wait for the business to roll in.

There was a time when the internet was new and this might have been the case, but now you must get your website seen to make it work for you. This involves getting your site seen in the search engines as well as connecting with your customers through social media and email marketing campaigns. A professionally managed website and marketing campaign can take a business from struggling in its small shop to a thriving business selling worldwide.

Getting Help with E-Commerce

Rather than letting the complexities that come with understanding e-commerce scare you away, look for the services of a professional SEO (search engine optimization) company. You will invest money for these services, but far less than what you spend on a monthly lease and paying staff to run it. Moreover, the ROI (return on investment) is typically much higher. An experienced SEO company can help you set up your website, add content to it, get your site ranked in the search engines, and help you properly market your products.

Social media and email marketing are employed to help you develop a relationship with your customers. The right company can build, rank, and market your site, while you sit back and enjoy the benefits of their hard work. All this work can be done free, but keep in mind not only is it time-consuming, but it is also most effective when done by someone who understands the basics of e-commerce.


E-commerce is more than just about getting your business onto the internet. It is about leveraging the power of the internet to take your business as far as your dreams and ambitions want to go. E-commerce has effectively lifted the limitations of distance and time to allow you to expand your business and make it as cost effective as possible. E-commerce offers all the tools you need to compete on a global scale and take your business from just surviving to a healthy growing online business.

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