Question

Your friend wants to start an ecommerce website to commercialize some crafts she has been creating. She has approached you for an explanation on the basics to start an ecommerce website.

Write a 1 - 2 page essay explaining to your friend what she needs to know to begin an e-commerce website. As part of your essay make sure you include:

• A definition of what ecommerce is.

• A definition of the Internet and the World Wide Web, and how they are used to facilitate ecommerce.

• Categories of ecommerce, and the category that your friend would beimplementing.

• How the key components of an eBusiness solution work (front end/ back end).

• The steps your friend would follow to set up an ecommerce website:

o Selecting an eCommerce business strategy

o Getting a domain name

o Developing a site (tools, design, services)

o Deciding whether to develop/host the site herself or seek an external host service provider (identify the pros/cons of each decision)

o Implementing a methodto collect payments

o Establishing basic management methods to mitigate typical security threats (describe some typical threats)

Answer 1

E-commerce (electronic commerce) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. These business transactions occur either as business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer or consumer-to-business. The terms e-commerce and e-business are often used interchangeably. The term e-tail is also sometimes used in reference to the transactional processes for online shopping.

History of e-commerce

The beginnings of e-commerce can be traced to the 1960s, when businesses started using Electronic Data Interchange (EDI) to share business documents with other companies. In 1979, the American National Standards Institute developed ASC X12 as a universal standard for businesses to share documents through electronic networks.

After the number of individual users sharing electronic documents with each other grew in the 1980s, the rise of eBay and Amazon in the 1990s revolutionized the e-commerce industry. Consumers can now purchase endless amounts of items online, from e-tailers, typical brick and mortar stores with e-commerce capabilities and one another.

Types of e-commerce

Business-to-business (B2B) e-commerce refers to the electronic exchange of products, services or information between businesses rather than between businesses and consumers. Examples include online directories and product and supply exchange websites that allow businesses to search for products, services and information and to initiate transactions through e-procurement interfaces.

In 2017, Forrester Research predicted that the B2B e-commerce market will top $1.1 trillion in the U.S. by 2021, accounting for 13% of all B2B sales in the nation.

Business-to-consumer (B2C) is the retail part of e-commerce on the internet. It is when businesses sell products, services or information directly to consumers. The term was popular during the dot-com boom of the late 1990s, when online retailers and sellers of goods were a novelty.

Today, there are innumerable virtual stores and malls on the internet selling all types of consumer goods. The most recognized example of these sites is Amazon, which dominates the B2C market.

Consumer-to-consumer (C2C) is a type of e-commerce in which consumers trade products, services and information with each other online. These transactions are generally conducted through a third party that provides an online platform on which the transactions are carried out.

Online auctions and classified advertisements are two examples of C2C platforms, with eBay and Craigslist being two of the most popular of these platforms. Because eBay is a business, this form of e-commerce could also be called C2B2C -- consumer-to-business-to-consumer.

Consumer-to-business (C2B) is a type of e-commerce in which consumers make their products and services available online for companies to bid on and purchase. This is the opposite of the traditional commerce model of B2C.

A popular example of a C2B platform is a market that sells royalty-free photographs, images, media and design elements, such as iStock. Another example would be a job board.

Business-to-administration (B2A) refers to transactions conducted online between companies and public administration or government bodies. Many branches of government are dependent on e-services or products in one way or another, especially when it comes to legal documents, registers, social security, fiscals and employment. Businesses can supply these electronically. B2A services have grown considerably in recent years as investments have been made in e-government capabilities.

Consumer-to-administration (C2A) refers to transactions conducted online between individual consumers and public administration or government bodies. The government rarely buys products or services from citizens, but individuals frequently use electronic means in the following areas:

• Education: disseminating information, distance learning/online lectures, etc.
• Social security: distributing information, making payments, etc.
• Taxes: filing tax returns, making payments, etc.
• Health: making appointments, providing information about illnesses, making health services payments, etc.

Follow these steps to build your eCommerce store from scratch:

• Decide The Product You Want to Sell

While browsing the internet you must have noticed the existence of multiple eCommerce websites selling varied items. There are certain websites dedicated to selling a particular line of products or services such as garments, travel plans, fashion items, etc. Also, there are some other eCommerce websites that sell multiple items like mobile phones, laptops, household appliances, books, CDs, home theatres, handy cams, sports goods, and so on. The latter is a like a huge departmental store selling everything under the same roof.

At the outset, it is thus important to decide on the product or service that you would like to sell through your website. While deciding on the item of trade it is essential to estimate the local demand. Buyers would always prefer to buy items from a local vendor irrespective of being online or offline. The local supplier would always ensure faster deliveries, easier payment terms, and earlier replacements in case of wrong or defective shipments.

• Choose Your Business Model

As an eCommerce business owner, you can choose your business model as per your requirement. Either you can sell only through your online store, or you can sell your products on marketplaces like Amazon, FlipKart, eBay, etc. You can also sell your products on both the platforms at the same time.

• Choose a Business and Domain Name

Once you have decided on your range of items and business model, the next step would be to choose a business name and create a domain. A business name should be relevant to your products and easy to remember for your target audience. A domain gives an identity and makes it easier for online buyers to recognize you. However, for companies with limited financial resources, it would be desirable to get a shared domain. Sharing a domain with an established name makes it easier for reaching out to your target buyers. As the business grows it would be wise to have a dedicated domain as it helps in search engine optimization and easier recognition.

• Select An eCommerce Website Builder

Nowadays, it’s very simple to build your online store with the help of eCommerce website builders like Shiprocket 360. This DIY online software creates websites in few seconds where you can start selling products instantly.

• Designing Your eCommerce Store

Your eCommerce website is your store, and it needs to be designed for the convenience of your buyers. Your website should contain details about your saleable products and services. Images, descriptions, prices, users’ comments, ratings should all be included in your web page for guiding prospective buyers. You must make it certain that your web page showcases your products perfectly so that buyers are never misled. You must make your web pages and website attractive as it’s your brands’s representation to buyers online.

• Set Up The Payment Gateway

As an online business, one must have multiple payment options available for the customers. The eStore builders like Shiprocket 360 come with tools that can set up these functionalities to your website automatically. The customer should be able to make payments via credit card, debit card, online wallets, net banking, COD, etc.

• Secure Your Website By Installing SSL Certificate

For all the websites that transfer data online, one must make sure that their connection is protected by a Secured Security Layer (SSL). The SSL certificate keeps your website secure and builds the trust among your customers. Nowadays, even Google recommends having an SSL certificate for every single website.

• Select Your Shipping Partner

Once you start selling products through your eCommerce website, you need to ship those products to your customers with the help of courier services. eCommerce logistics aggregator services like Shiprocket are the best option to go for. They give you multiple courier agency options to ship your product with the lowest available shipping charges, so you may have maximum profit value in your share.

These are the basic steps in creating an eCommerce website for your product or service and start selling instantly.