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| Version | User | Scope of changes |
|---|---|---|
| Dec 2 2007, 1:09 PM EST (current) | hemanthjava | 895 words added |
| Dec 2 2007, 1:08 PM EST | hemanthjava |
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Concepts of E-commerce
Before we go ahead one essential thing that one needs to understand is that what is actually e-commerce all about. To make the understanding of the entire concept quite simple we can compare an online store with a normal shop. In both the online store as well as the normal shop one would have all the commodities arranged in a proper manner. Now it would depend upon the customer as to what he/she needs .One reaches the shop goes through the products that have been kept on display finds the stuff that he/she needs puts it in a shopping cart goes to the payment counter and makes the payment. In the same way in an online store the customer comes into the store by logging in through his/her personal account and then chooses the product of his/her choice puts it in a shopping cart and makes the payment through the payment gateway. And even in case of the retailer it’s the same kind of a procedure that is followed i.e. the retailer arranges for the shop puts up the products in the store in an arranged manner gives the customer the various choices and then after selling the product accepts the payment. The only difference here being that the physical presence of the retailer is not required for selling the product.
Now here are some other points that will make the concept much more clearer-:
1.A retailer before selling a product will display his/her product in a very good manner so that the consumer feels like coming to your store, and have a look at the products that have been placed. The customer would like to feel the product and also check the quality of the product. Another aspect that the consumer is going to look for is the price of the product and will do the price comparison before buying the product. So it’s very important that the customer knows about the difference in prices between the different products. So one needs to set up his/her products in the store in a very good manner so that it is attractive and will make the customer buy the product. But to make this happen one certainly needs to know the customer that they would be dealing with. For e.g. their lifestyle, there buying behaviour etc.
2.After choosing the product one would obviously like to go around and check if anything better is available or not, so it is very important that the customer gets to store this item in a shopping basket or a cart, as is the case in online transactions. This is because if such a facility is not available then the customer might have to again search for the product that he initially wanted to buy and if he does not get it, then it will be very cumbersome and frustrating for the customer but if there is a shopping basket one can always carry it with them and compare the products and then the buy the best one.
3.After the customer has selected the product then he /she would move to the checkout counter so that the payment can be made and the customer can then take the product home. In a normal store it is very simple but in an online store there are a lot of things involved like the tax and shipping has to be calculated, the proper address has to be taken since the product would be shipped to the customer. All this needs to be properly presented to the customer because if he/she feels that there is something wrong with the arrangement then they might just bail out from the sale.
4.An e-commerce store is certainly a better option compared to a normal store since it does not require a huge space for setting up a store and it can cater to people almost all over the world without much effort.
Now if we look at it from an owner’s point of view the online store is very similar to a normal store. The owner of the store will have to keep a check on the stock and also decide the price of the commodities. He/She needs to keep a track of the inventory so that one knows that what is selling in the market and what is not. Another aspect that the owner needs to look at is track orders and check if the ordered products have been shipped and have arrived at the desired destination. One important thing that the owner needs to look into is track his customers to make sure that they are provided the best services so that they approach you for any buying the next time they come online. And the last point would be the deposit of money in the bank, which will be explained to you in the other topics to come.
So if any one of you intends to set up an online store you can go on the Internet and search for such sites and then decide on the type of design and the functionality that you need for your very own e-store. There are a wide variety of ideas that you can find on the internet. You can choose the best characteristics of each of the sites and create an e-store of your own that suits you and helps you make profits.
Before we go ahead one essential thing that one needs to understand is that what is actually e-commerce all about. To make the understanding of the entire concept quite simple we can compare an online store with a normal shop. In both the online store as well as the normal shop one would have all the commodities arranged in a proper manner. Now it would depend upon the customer as to what he/she needs .One reaches the shop goes through the products that have been kept on display finds the stuff that he/she needs puts it in a shopping cart goes to the payment counter and makes the payment. In the same way in an online store the customer comes into the store by logging in through his/her personal account and then chooses the product of his/her choice puts it in a shopping cart and makes the payment through the payment gateway. And even in case of the retailer it’s the same kind of a procedure that is followed i.e. the retailer arranges for the shop puts up the products in the store in an arranged manner gives the customer the various choices and then after selling the product accepts the payment. The only difference here being that the physical presence of the retailer is not required for selling the product.
Now here are some other points that will make the concept much more clearer-:
1.A retailer before selling a product will display his/her product in a very good manner so that the consumer feels like coming to your store, and have a look at the products that have been placed. The customer would like to feel the product and also check the quality of the product. Another aspect that the consumer is going to look for is the price of the product and will do the price comparison before buying the product. So it’s very important that the customer knows about the difference in prices between the different products. So one needs to set up his/her products in the store in a very good manner so that it is attractive and will make the customer buy the product. But to make this happen one certainly needs to know the customer that they would be dealing with. For e.g. their lifestyle, there buying behaviour etc.
2.After choosing the product one would obviously like to go around and check if anything better is available or not, so it is very important that the customer gets to store this item in a shopping basket or a cart, as is the case in online transactions. This is because if such a facility is not available then the customer might have to again search for the product that he initially wanted to buy and if he does not get it, then it will be very cumbersome and frustrating for the customer but if there is a shopping basket one can always carry it with them and compare the products and then the buy the best one.
3.After the customer has selected the product then he /she would move to the checkout counter so that the payment can be made and the customer can then take the product home. In a normal store it is very simple but in an online store there are a lot of things involved like the tax and shipping has to be calculated, the proper address has to be taken since the product would be shipped to the customer. All this needs to be properly presented to the customer because if he/she feels that there is something wrong with the arrangement then they might just bail out from the sale.
4.An e-commerce store is certainly a better option compared to a normal store since it does not require a huge space for setting up a store and it can cater to people almost all over the world without much effort.
Now if we look at it from an owner’s point of view the online store is very similar to a normal store. The owner of the store will have to keep a check on the stock and also decide the price of the commodities. He/She needs to keep a track of the inventory so that one knows that what is selling in the market and what is not. Another aspect that the owner needs to look at is track orders and check if the ordered products have been shipped and have arrived at the desired destination. One important thing that the owner needs to look into is track his customers to make sure that they are provided the best services so that they approach you for any buying the next time they come online. And the last point would be the deposit of money in the bank, which will be explained to you in the other topics to come.
So if any one of you intends to set up an online store you can go on the Internet and search for such sites and then decide on the type of design and the functionality that you need for your very own e-store. There are a wide variety of ideas that you can find on the internet. You can choose the best characteristics of each of the sites and create an e-store of your own that suits you and helps you make profits.
