© 2008 Danogo.com - All Rights Reserved - Protected by Copyscape.com
Understanding E-commerce
People are buying and selling products and services over the Internet at an ever increasing rate. The ability to buy easily and securely with a credit card was the first major breakthrough for e-commerce. Using email to market directly to buyers has been the other major factor in growth of the online economy. Some products can be delivered right over the Web, like software or e-Books. However, most online transactions still results in a product being shipped.
E-commerce actually started before the Web in the 1970s. ATM machines, credit cards and electronic banking transactions have been going on for a while. The Boston Computer Exchange in 1982 and the American Information Exchange in 1991 are examples of the first electronic marketplaces that pre-date the Internet.
Networked business to business marketplaces like Bobex.be first inspired e-commerce.
At the start of the Web in 1994, at first people thought that sales on the Web would become a significant percentage of the world economy. Growth has been steadily increasing but has yet to get to that point. Tools like online shopping carts and security technology like SSL and HTTPS have all helped the Web become a place where real business can be done.
Lessons Learned
Many of the companies that wanted to set up shop only on the Internet, and not in the real world failed. That was a big reason for the burst of the ‘dot-com’ bubble. However, many businesses that were already successful off of the Internet began to put up Websites between 1998 and 2000. It turned out that the Web was much better suited to compliment a so called ‘brick-and-mortar’ real-world company that it was to actually start a company.
E-commerce has worked better for real-world retailers like BestBuy.com as compared to pure dot-coms.
When large sites auction sites like eBay and e-tailers like Amazon.com added the ability for regular folks and small business to sell their own products, many home-based businesses were able to thrive. The large companies offered easy to set-up sites and an existing market to sell to. This niche approach to web business also turned out to work exceptionally well.
eBay.com launched a revolution for home businesses.
The Keys to E-commerce Success
Sales on the Internet grow every year and are already in the hundreds of billions of dollars. Popular shopping sites include Amazon, Office Depot, and Hewlett Packard. It seems that online customers like to buy allot of media, office, and computer products! The best e-commerce sites like Amazon have all the right factors at work. That includes a secure Website with superior design, a professional technical infrastructure, excellent customer service, and experienced managers.
The real key is making sure that people who buy on the site enjoy the experience and come back to the site again. Of course that means offering low prices, responsive phone and/or email service, promotions with incentives to return and even affiliate programs. Personalization such as offering automated recommendations and wish lists also goes a long way with visitors.
Amazon.com is the king of personalization.
If a site can provide an online community, that can help with customer loyalty as well. This includes tools like forums, chat and social networking. Most importantly of all a successful ecommerce site offers superior search and navigation capabilities so that a customer can find exactly what they want as fast as possible!
You can find what you are looking for very quickly on Craigslist.org with one simple search. Also, putting an ad up is faster than any other free classified ad service.
So if you want to venture into online commerce, remember that many of the solutions have already been mapped out for you!
