Ecommerce began in 1994 when Phil Brandenberger bought the first online product – “Ten summoner’s tales” by Sting. In 2021, 27,2 percent of the global population will shop online.
These statistics show how ecommerce is now a part of people’s daily lives worldwide.
This article will explore ecommerce in more detail. We will go through the history of electronic commerce and provide some key statistics. We will also explore e-commerce development, platforms, and business models to show its impact on the world.
What Is Ecommerce?
Ecommerce, also known as Internet commerce, electronic commerce, or online commerce, involves Internet transactions. Ecommerce businesses or stores are those that sell products online.
Amazon.com, for example, is one of the most popular online shops within the ecommerce sector.
The terms ecommerce and e-business are not synonymous. The terms, although sometimes used interchangeably, are not synonyms. Ecommerce is the specific transaction of goods and services. E-business includes all aspects of running an Internet business.
History and Evolution of Ecommerce
Michael Aldrich created the foundation of ecommerce in 1979. He connected his TV to a computer by using his phone line. While it wasn’t ecommerce in the way we know it now, his idea was the first to spark the idea of online shopping. Most people did not own computers at the time. Steve Jobs and Bill Gates popularized computers. Bill Gates said his goal was “to have a computer in every home,” he even stated that he wanted computers on every desk.
Jeff Bezos launched Amazon in 1994 as an online bookstore that sold over a million books. Amazon became the most popular store online for consumers to purchase any product.
In the early 1990s and mid-1990s, many people had computers in their homes. This paved the way for ecommerce to grow. In the early and mid-1990s, companies accepted checks because there was no online payment gateway for customers to send money to businesses. When PayPal was founded on December 1998, the experience of shopping for customers became easier as credit cards could be accepted.
In the early 2000s, Shopify and other platforms like WordPress allowed businesses to build ecommerce sites with minimal or no programming skills. The barrier to entry was thus lowered. It could be set up by anyone with a computer and some capital.
Online sales accounted for 3.4 percent in 2008, which is a sign of industry growth. It was estimated in 2014 that there were between 12-24 million online stores worldwide.
By 2021, the knowledge gap between beginners and advanced ecommerce experts will have closed rapidly. The ever-growing number of blogs and online resources makes finding industry tricks, strategies, and tips easy.
Anyone can now set up an online store and see solid results in as little as six months.
Global ecommerce is expected to reach $4.8 billion by 2021. This makes ecommerce an industry that’s growing and profitable.
In 2018, nearly half of consumers shopped more on mobile devices than in stores. In 2018, almost 50% of consumers shopped more on mobile than in-store.
Women shop online more often than men. Women spend $6 for every $10 online compared to men’s $4.
The millennials (ages 18-34) tend to buy more online than the older generations. They also represent the largest group of digital consumers, at 38.4%.
What is an Ecommerce business?
Ecommerce is a business that offers goods and services online. The ecommerce transaction allows the consumer to purchase quickly and select from various payment options. Different ecommerce business models exist, depending on what you want to do.
Popular Ecommerce Business Models
You have more choices to make with e-commerce. In traditional commerce, the business models are more restricted. Other niche models exist in addition to the four well-known business models.
B2B: Business to Business is the commerce model where a company sells to another business. Alibaba is a B2B company since its suppliers sell products to other companies. Alibaba’s prices are meager because they’re Wholesale Prices. This allows businesses to profit from their products.
B2C: Business-to Consumer involves businesses selling directly to consumers. You’ll be selling to consumers if you open an online retail store. B2C companies include Amazon, Walmart, and Apple.
C2C: C2C is the model where consumers sell to other consumers. Online sales sites such as eBay, Craigslist, and Etsy are the most common ways consumers trade. Most sellers are average consumers who sell products they own, whether new or second-hand.
C2B: A consumer selling their products or services is the C2B model. A photographer could sell their photography to a company.
What is an Ecommerce website?
A website that sells goods or services is an ecommerce site. This type of site can be based on any of the ecommerce models listed above. We have listed the most common types of online ecommerce stores to demonstrate how diverse ecommerce can be.
Types of Common Ecommerce Websites
Physical Goods Ecommerce Site: Retailers with brick-and-mortar stores can host their online store to sell to a broader audience. This is an excellent option for retailers that want to increase their sales but don’t have physical stores.
Service-based Ecommerce Site: Recently, websites have been used to link service providers with their clients.
Digital Products Ecommerce website: Companies that sell digital products such as software or videogames don’t require physical stores to sell the products since it only requires the customer to download the product.
Dropshipping Website is a little different from physical stores. Dropshipping allows merchants to sell products to their customers online without holding any inventory. They find a supplier, wait for the customer to purchase the products, and then the supplier fills the order.
What is an Ecommerce Platform?
A software platform that allows companies to create online shops is an ecommerce solution. Businesses can use these online stores to sell their products and services around the globe, using delivery services. Shopify, BigCommerce, and Magento are examples of ecommerce platforms.
Shopify was founded by Tobias Lutke 2004, Daniel Weinand, and Scott Lake founded Shopify. Shopify’s platform was used by over 1,000,000 companies in 2019. These businesses contributed to $183 billion of global GDP. The platform allows store owners the option to instnging DSer’s dropshippinfrom g application up to Hurrify’s Countdown Timer application. Shopify is rated as the best ecommerce platform, with a rating of 10/10.