Strateka Insights

The Basics of E-commerce

E-commerce is quickly becoming an important aspect of the Internet that will continue to grow in the future. Simply put, it is any business that transfers or exchanges goods or services through commercial transactions on the Internet. With no limits on the time and distance between the customer, e-commerce makes it easy to carry out transactions. Furthermore, it has even led to the development of business like Amazon, Ebay, Etsy and other electronic marketplaces that bring sellers and buyers together. These topics and more will be covered in this article.

WooCommerce and Shopify are two leading e-commerce platforms that allow you to create an online store for your business. These sites also provide users with software to assist in the sales and management of their online business. You can customize your store, manage your products, complete sales, and track your business. Transactions are often completed electronically using payment gateways. These are services that allow the transfers of funds between the customer and the seller.

Payment gateways, like Paypal, process credit card payments and play an important role in e-commerce. In contrast to creating an online store, brick and mortar stores are physical storefronts where there is direct contact between a buyer and a seller. However, payment gateways are still needed in these stores to authorize payments and information. Payment gateways are also needed to setup credit card services on a website. However, you can also apply for an internet merchant account which will give you the ability to process credit card payments.

Finally, we reach the important question as to whether it is worth it creating your own online store for your business. Sites like Amazon, Ebay, and Etsy look very promising to sellers and can often prove to be extremely useful. However, there is no true answer for a business wondering if these sites are the right decision, only pros and cons you must weigh.

One exceptional aspect of sites like Amazon is the fact that they generate an incredible amount of traffic for sellers. You may receive numerous customers buying your product even if you don’t have any reviews yet on Amazon. Furthermore, these electronic marketplaces make it incredibly simple and easy to sell a product. In 2016, 100,000 sellers on Amazon had sales of at least $100,000 on the site. However, there are risks along with these electronic marketplaces. They often favor the buyer when dealing with issues and could possibly even ban you as a seller even if you hadn’t committed a wrongdoing. Also, you face fees when selling through a marketplace rather than your own site.

In conclusion, there are many factors you must consider when deciding which route is best for your business. Selling through electronic marketplaces is not for everyone, and depending on what product you are selling or the competition you face, creating your own online store may be the right move after all.

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