History of eCommerce
eCommerce started way back in the 1960s when organizations began to use Electronic Data Interchange (EDI) to transfer documents of their business back and forth. The 1990s saw the emergence of online shopping businesses, which is quite a phenomenon today.
It has become so convenient and easy, that anyone can shop for anything right from a living room, with just a few clicks. This has evolved more with the emergence of smartphones, where now, you can shop from anywhere and anytime, with a wireless device connected to the Internet. Now you can search for almost any product or service online, without having to go anywhere physically.
How online stores and eCommerce are improving sales rate?
In the last several decades, more and more people are buying online and enjoying the benefits that eCommerce provides, such as increased convenience, lower prices, and sales tax exemptions.
Since the advent of credit card processing on the internet, e-Commerce has permeated throughout society and into our daily lives. Today, just about any product or service imaginable is for sale sold on the web, whether through a dedicated eCommerce website or other means.
eCommerce, also known as e-Business, or electronic business, is simply the sale and purchase of services and goods over an electronic medium, like the Internet. It also involves electronically transferring data and funds between two or more parties. Simply put, it is online shopping as we commonly know it.
What is an eCommerce website?
eCommerce websites are online portals that facilitate online transactions of goods and services through means of the transfer of information and funds over the Internet. e-Commerce was done partially through emails and phone calls in the early days. Now, with a single website, anything and everything that a transaction needs, can be executed online.
There are different eCommerce websites for every field. The most common type is retail selling. But there are many others too, like auction websites, business-to-business services, music portals, consultancy websites and finance management websites.
Advantages of eCommerce over traditional retail
No geographical limitations
Physical stores limits you to the geographical area that you can service. With an eCommerce website, the whole world is your playground.
New customers with search engine visibility and SEO strategy
Search engines drives traffic to your e-Commerce website. It is not unusual for customers to follow a link in search engine results and land on an eCommerce website that they have never heard of. This additional source of traffic can be the tipping point for some e-Commerce businesses.
One of the most tangible positives of eCommerce is the lowered cost. A part of these lowered costs could be passed on to customers in the form of discounted prices.
It is no longer about pushing a shopping cart to the correct aisle or scouting for the desired product. On an eCommerce website, customers can click through intuitive navigation or use a search box to narrow down their product search immediately.
Saving time and costs
e-Commerce allows you to visit the store virtually, with just a few mouse clicks and save time and travels costs.
eCommerce stores are open all the time
Websites can run all the time. From the merchant’s point of view, this increases the number of orders they receive. From the customer’s point of view, an “always open” store is more convenient.
eCommerce is a strongly growing domain showing no signs of decline.
With online shopping now accounting for almost 10% of total retail sales, e-Commerce has a significant impact on traditional retailing and this will continue in the following years.
US Census Bureau Figures show that over the last two decades, U.S. online retail sales have grown rapidly, rising from 5 millions in 1998 to 389 millions in 2016. In Europe, Enterprises Total Turnover from eCommerce represented 15% in 2014, growing to 19% in 2017.
Online retail sales are going to grow by almost 20% between 2019 and 2022 in the US, reaching almost 380 millions in 2022.
The biggest potential for a boost to growth in online shopping would be expansion into categories. That way, online sales penetration remains low – such as food retailing. Food, Beer, and Wine eCommerce Sales in the US represent only 9,129 Million US Dollars.
Increased availability of food shopping online at a competitive price could provide a significant boost over the medium term to the growth of online shopping overall.