What is E-Commerce? Learn the Basics and Start Earning
People around the world use electronic stores en masse. They browse offers on the web, compare and analyze, to finally know everything about the product before they go to a physical store. But if one were to insist, one could not leave the house at all and do all the shopping solely through the Internet.
It is not surprising at all, but it took years of IT industry development and technology based on the IP protocol to reach this level. E-commerce, or e-commerce, is driving various branches of industry today. It affects the development of technology and contributes to the creation of new companies and jobs. Each of us more or less knows that it is about online sales, but “more or less” does not satisfy us. So what exactly is it and how was e-commerce created?
What is e-Commerce?
The exchange of goods and services is a definition of trade that has been used for hundreds of years. Already in ancient Rome, nameless contracts and exchange of goods were subject to the law. The definition of e-commerce refers to a process that assumes the same function as physical sale and purchase of goods, but in this case, the cycle of information exchange, commodity and monetary receivables involves the use of electronic devices.
It can be both a computer connected to the Internet, a landline telephone, a cellular telephone, but also a fax and television. The central government administration body, ie the Central Statistical Office, defined e-commerce as an electronic trade effected by networks using the IP protocol. This means that for Polish law, online commerce does not involve telephone and fax orders. The most popular place for making electronic purchases are online stores.
There are many divisions of enterprises operating in the e-commerce market, although the most important ones are: division by subject and subject of trade and distribution due to distribution channels. Companies selling physical goods, digital goods, services serving B2B clients, B2C, C2C, C2B, functioning exclusively on the Internet (pure-click), initially only in the real world (bricks-and-clicks) or initially only on the Internet (click-click) to-brick) are characterized by different goals and different strategies.
E-commerce has many advantages. Transferring your business to the Internet and buying and using services via the web brings benefits that mostly outshine the disadvantages of this type of trade:
What are the example benefits for an entrepreneur who decides to transfer sales to the network?
Savings at every turn. Online sales reduce the costs of employment, storage of goods, reduce the cost of advertising and doing business (online store does not require any required permits)
- The offer goes to customers from all over the country as well as abroad, thanks to which it is easier to increase profits
- Sales take place 365 days a year, 24 hours a day
- Accurate descriptions of goods and photos allow not only to attract customers but also save time for presenting each product separately
Customers can also enjoy the benefits of e-commerce:
- Simple and very fast access to product information. We make a decision faster and receive a product or service faster.
- The ability to purchase goods from anywhere using mobile devices and fast forms of payment online.
- Item availability. If one store does not have the things that interest us, we can find it in dozens of other places on the Internet.
- Multimedia and services available without leaving your home. Online stores have cheaper versions of programs, books, and music in the form of electronic files. In contrast, the services of trainers, nutritionists, foreign language training and many others can be realized cheaply without leaving your home.
- The possibility of purchasing goods withdrawn from physical sales or from second-hand items.
And it is just as you can see – e-commerce is not just a store on the web. It’s primarily a lot of benefits, which we do not realize every day doing small and larger purchases online. However, something that is the most fun in this industry is the fact, how online sales are constantly evolving and how the quality of services is being improved. That everyone would live simply easier!
Europe is the largest e-commerce market in the world belongs to the group of countries where the fastest increase in turnover is recorded. It is estimated that e-commerce turnover in Poland will increase by up to 40% in five years (“European B2C E-commerce Report 2013”).
The business climate has a positive effect on the creation of new jobs and – if there is no sudden collapse (and nothing indicates it) – the number of people employed in the online shopping industry will continue to grow. The fastest growing segment of e-commerce is services that facilitate running online stores, the number of which is systematically growing.
1. Stay up-to-date with trends
Trend monitoring, continuous surveillance of the competition and – above all – a constant attempt to surprise the customer are very important issues in this industry. – The biggest advantage of the e-commerce industry is its dynamic development. Every day there are new solutions useful in e-commerce, and keeping up with it is very time-consuming. Being up-to-date requires constant testing of new solutions, thorough observation of the competition. In the long run, it is tiring. At the same time, new people developing interesting projects are constantly getting to know each other. I think that e-commerce is not for everyone, but it is one of the most interesting industries.
2. IT resources and marketers
More and more often we browse online stores on our smartphones and tablets, and this, in turn, sets new requirements for entrepreneurs, marketing departments and, above all, the entire IT base. These positions are the most popular in the e-commerce industry.
Employees in the e-commerce industry can especially count on people with technical competence working in IT departments. A well-run e-commerce store is not able to exist without a proper marketing base. It is the marketers’ staff that is the most numerous, which is why an efficient marketer can easily find a job in this industry.
3. Promotion for freelancers
In the dynamically growing e-commerce industry, sometimes a huge amount of work is so big that it is necessary to use freelancers who will relieve their employees. – Our company does not have extensive departments because we use outsourcing, which has been working very well for many years and brings fantastic results.
We outsource the majority of activities related to store operations, including programming and marketing support to external entities. However, in the future, we do not exclude the creation of additional vacancies: for graphic designers or copywriters.
4.Monitoring and analysis
Many job offers contain the magic word “creativity”, which is probably the most abused concept in the industry. Work in e-commerce is primarily about accurate market monitoring. Nobody expects us, that after coming to the company, we will throw in fantastic ideas that will make the store generate more profits immediately.
Without a thorough analysis of competition, our ideas may seem ingenious, but in effect, the market verifies everything. Half of this “creativity” is nothing but an answer to key questions: what else can we offer than the competition? How do we want to stand out? As a rule, it takes time to come to a constructive conclusion.
You can see here an interesting relationship: on the one hand, the e-commerce industry is incredibly dynamic, and on the other, the implementation of some ideas requires mastering.
5.Differentiated structure of employment
The structure of employment in e-commerce is diversified. You can get a job in the industry, not necessarily end studies related to sales, trade or management (of course, such people at the start will have an advantage over the competition). Recruitment specialists try to fish out people who see potential above all else, so the specialization barriers associated with studies go down in the background.
It’s worth to try your hand at e-commerce. This dynamic industry is not just a job in the sweat of the forehead and a constant fight against competition. The global commercial services market opens unlimited possibilities for making new contacts, trips to conferences and workshops.