What is e-commerce: characteristics, advantages and examples
Posted: Wed Jan 22, 2025 10:06 am
The first e-commerce sale occurred in 1994. Dan Kohn, a 21-year-old who ran a website called NetMarket, sold Sting's CD Ten Summoner's Tales to a friend who bought it with his credit card for $12.48 plus shipping. These exchanges are what we know today as e-commerce: sales of goods and services made over the Internet.
E-commerce has come a long way since 1994. You probably know Amazon, which is one of the largest e-commerce sites in the world, or eBay, where, in addition to fixed-price sales, auctions are held. These are great representatives of the growth of the e-market and of business trends for the future.
To help you get more familiar with this type of business, here are some facts about e-commerce and its growth trends, as well as some tips for starting an online business.
What is e-commerce?
E-commerce refers to the purchase and sale of products venezuela whatsapp lead or services carried out on the Internet. This activity can be carried out through specialized digital platforms, websites, social networks or systems designed for this purpose.
How e-commerce works
The main requirement for establishing digital business relationships is to have an online platform to carry out the sales and purchase processes . By its nature, e-commerce requires access to the Internet and a means of interaction between the customer and the seller . In simple terms, a buyer accesses the sales medium, selects the product or service they want, makes the payment for the goods and receives what they bought, either virtually or physically.
Although these platforms are becoming more autonomous and simplified, they often require the support of advisors. Therefore, it is important not to confuse e-commerce with the lack of customer service or sales managers.
To create such a medium, you need to digitize your databases, inventories, and billing methods . E-commerce requires a complete digital presence and constant updating to avoid failures in purchases or in the computer system.
What is e-commerce for?
E-commerce serves as a sales channel available to the buyer with unique features, especially compared to the possibilities of physical stores. For example, it features availability of purchase at any time, documentation of purchase attributes, online payment, delivery tracking by courier service, and more.
For this reason, e-commerce represents a simple and convenient activity for users, which is why its participation has increased in relation to other distribution channels.
Among other elements to consider for electronic commerce we can mention:
Advantages of e-commerce
Among the main advantages of electronic commerce are:
It involves easy and simple interaction for the user.
Reduces customer purchasing time.
Provides the right information at the right time.
It makes it easier to compare purchasing alternatives.
Allows tracking of merchandise until final delivery.
Encourages direct communication between buyer and seller.
In addition, e-commerce brings direct benefits for sellers and businesses. For example:
Reduce costs. This is because you don't need to have a physical space (and sometimes not even inventory, as in dropshipping ).
It provides the possibility of sales 24/7, at any time, any day.
Increase the sales reach of products geographically.
It offers better control over the sales process and post-sale follow-up, especially if there is a portal that manages the point of sale.
Provides better search engine positioning (SEO).
Provides better inventory management.
Disadvantages of e-commerce
Although there are many advantages that electronic commerce brings with it, this element also has some disadvantages, as we will see below:
Restriction of communications between buyer and customer.
Disappointment with the purchased product that is contrary to the idea described.
Losses, thefts and mistreatment of merchandise.
Need for security in the buying and selling process.
Next, we will look at the most relevant characteristics of e-commerce.
4 characteristics of e-commerce
Requires updated databases.
Uses digital media to offer goods or services.
It is optimized for customer experience.
Requires systems development and design.
1. Requires updated databases
Without virtual catalogues of products and services, it is not possible to make sales. Therefore, your platform must be optimized to keep the availability of the goods you offer up to date and to be clear with your customers.
There are automated servers that can assist you in stock control. Generally, this requires the assistance of workers who monitor the supply in the distribution and sales networks , so these tools are not substitutes, but logistical supports.
2. Use digital media to offer goods or services
The digital factor is, for obvious reasons, an essential feature of the various types of e-commerce . Due to this digital need, not only are buyers forced to have computing devices that allow them to explore and carry out their purchases. Companies also require a good technological infrastructure.
Tools such as powerful processing machines, physical and cloud storage space, own servers, network domains and a good internet connection are essential to operate this type of business.
3. It is optimized for customer experience
While it is true that e-commerce brings significant benefits for businesses, in reality the online shopping experience revolves around the needs of customers . In recent years it has become clear that it is the market and the audiences of buyers who demand new forms of consumption and better sales channels.
Online shopping is designed to meet these needs and improve the customer shopping experience. Keep in mind that more and more people are interested in spending as little time as possible buying products and as much time as possible enjoying them.
4. Needs system development and design
Every day, hundreds of businesses enter the digital market with some online sales platform and with the help of simple tools (such as WooCommerce ). However, to take a large-scale commercial operation to the digital world, it is necessary to have IT experts who can support the management of processes and the maintenance of servers, databases and work equipment.
E-commerce has come a long way since 1994. You probably know Amazon, which is one of the largest e-commerce sites in the world, or eBay, where, in addition to fixed-price sales, auctions are held. These are great representatives of the growth of the e-market and of business trends for the future.
To help you get more familiar with this type of business, here are some facts about e-commerce and its growth trends, as well as some tips for starting an online business.
What is e-commerce?
E-commerce refers to the purchase and sale of products venezuela whatsapp lead or services carried out on the Internet. This activity can be carried out through specialized digital platforms, websites, social networks or systems designed for this purpose.
How e-commerce works
The main requirement for establishing digital business relationships is to have an online platform to carry out the sales and purchase processes . By its nature, e-commerce requires access to the Internet and a means of interaction between the customer and the seller . In simple terms, a buyer accesses the sales medium, selects the product or service they want, makes the payment for the goods and receives what they bought, either virtually or physically.
Although these platforms are becoming more autonomous and simplified, they often require the support of advisors. Therefore, it is important not to confuse e-commerce with the lack of customer service or sales managers.
To create such a medium, you need to digitize your databases, inventories, and billing methods . E-commerce requires a complete digital presence and constant updating to avoid failures in purchases or in the computer system.
What is e-commerce for?
E-commerce serves as a sales channel available to the buyer with unique features, especially compared to the possibilities of physical stores. For example, it features availability of purchase at any time, documentation of purchase attributes, online payment, delivery tracking by courier service, and more.
For this reason, e-commerce represents a simple and convenient activity for users, which is why its participation has increased in relation to other distribution channels.
Among other elements to consider for electronic commerce we can mention:
Advantages of e-commerce
Among the main advantages of electronic commerce are:
It involves easy and simple interaction for the user.
Reduces customer purchasing time.
Provides the right information at the right time.
It makes it easier to compare purchasing alternatives.
Allows tracking of merchandise until final delivery.
Encourages direct communication between buyer and seller.
In addition, e-commerce brings direct benefits for sellers and businesses. For example:
Reduce costs. This is because you don't need to have a physical space (and sometimes not even inventory, as in dropshipping ).
It provides the possibility of sales 24/7, at any time, any day.
Increase the sales reach of products geographically.
It offers better control over the sales process and post-sale follow-up, especially if there is a portal that manages the point of sale.
Provides better search engine positioning (SEO).
Provides better inventory management.
Disadvantages of e-commerce
Although there are many advantages that electronic commerce brings with it, this element also has some disadvantages, as we will see below:
Restriction of communications between buyer and customer.
Disappointment with the purchased product that is contrary to the idea described.
Losses, thefts and mistreatment of merchandise.
Need for security in the buying and selling process.
Next, we will look at the most relevant characteristics of e-commerce.
4 characteristics of e-commerce
Requires updated databases.
Uses digital media to offer goods or services.
It is optimized for customer experience.
Requires systems development and design.
1. Requires updated databases
Without virtual catalogues of products and services, it is not possible to make sales. Therefore, your platform must be optimized to keep the availability of the goods you offer up to date and to be clear with your customers.
There are automated servers that can assist you in stock control. Generally, this requires the assistance of workers who monitor the supply in the distribution and sales networks , so these tools are not substitutes, but logistical supports.
2. Use digital media to offer goods or services
The digital factor is, for obvious reasons, an essential feature of the various types of e-commerce . Due to this digital need, not only are buyers forced to have computing devices that allow them to explore and carry out their purchases. Companies also require a good technological infrastructure.
Tools such as powerful processing machines, physical and cloud storage space, own servers, network domains and a good internet connection are essential to operate this type of business.
3. It is optimized for customer experience
While it is true that e-commerce brings significant benefits for businesses, in reality the online shopping experience revolves around the needs of customers . In recent years it has become clear that it is the market and the audiences of buyers who demand new forms of consumption and better sales channels.
Online shopping is designed to meet these needs and improve the customer shopping experience. Keep in mind that more and more people are interested in spending as little time as possible buying products and as much time as possible enjoying them.
4. Needs system development and design
Every day, hundreds of businesses enter the digital market with some online sales platform and with the help of simple tools (such as WooCommerce ). However, to take a large-scale commercial operation to the digital world, it is necessary to have IT experts who can support the management of processes and the maintenance of servers, databases and work equipment.