It is defined as the business model which allows an individual or a firm to carry out their business over the web or an electronic network.In other words buying or selling of goods or services using electronic funds transfer.It is also sometimes referred to as ebusiness.It can operate in all the major market segments like business to business,business to customer,customer to customer and customer to business.By Using this kind of business model, almost all types of products ranging from plane books to plane tickets can be sold over the internet via web based portal integrated with a payment gateway.
The concept of Electronic commerce (ecommerce) business has helped companies to establish firm market presence and also has improved their existing position in the market by providing an affordable platform to sell their products or services online to a large audience. It is like having an online shopping store apart from the physical store that the retailer has. However, in this case the customer does not have walk down to the physical store to purchase any commodity. He or she can buy the products or services directly from the online store by making the payment online. Thereby, retailers can sell virtually anything from digital information products to physical products which involve shipping the item to the consumers place.
Convenient: It is very easy and convenient on the customer’s part to shop online rather than visit all the way to the store and spend their valuable time to shop the items of their choice. Shopping on the portal can be done 24 by 7.
Variety of items: Most of the online retail stores offer a wide range to products online which otherwise is not generally available in the physical stores. There some stores which only has online existence with no chain of physical stores ,such stores can provide access to almost all the items to the customer making them to select the item of their choice from a wide range of products.
Inability to touch the product: The consumer cannot touch the item he or she wants to purchase in case on online shopping. The really product may not be fancy as shown in the images and so the customer may get disappointed after receiving the product if it differs from the one shown in the image.
Immediate gratification not there: After buying the item, the consumer has to wait for a stipulated time period before it arrives at the consumers place.
No one on one talk: While shopping online there is no one who you can talk to and enquire about the commodity to find whether it will meet your needs.
a. On Premise Ecommerce: In this model, normally a onetime investment for a valid license is required. Sometimes it may incur extra cost for hardware and installation services, migration of data and maintenance.
b. Open source Ecommerce: Open source platforms are free of charge.Here ,the users who download and use the platforms are responsible for installation, configuration and maintenance on their own respective servers.The software s which are distributed as open source as normally available free of cost and users can even modify the source code of the open source platform.Some of the best ecommerce platforms are Prestashop, Magento and oscommerce.
c. Saas Ecommerce: Software as a Service (SaaS)- is a cloud based delivery model in which applications are hosted and managed in a service provider's datacenter, paid for on a subscription basis and accessed via a browser over an internet connection.
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