Ecommerce – Facilitating Business Growth

Ecommerce is simply the act of electronically purchasing or selling goods over the Internet or on web-based services. It is considered as a worldwide trade that makes transactions in stock trading, real estate and online auctions. Ecommerce actually grew from late 90s, initially online only businesses started availing it. With the growth of technology and globalization, more companies are venturing into Ecommerce.

One of the most compelling factors of ecommerce that attracts large number of clients around the world is its business model. Unlike the traditional selling and purchasing of goods, where transactions occur online. And with the advent of technology and the internet, selling and purchasing of goods has become much easier, quick and convenient.

Online selling and purchasing have now become a norm and as a result of this online shopping is also catching up in the global trade. With an easy and fast way to buy and sell things around the globe, business models for ecommerce have grown. Ecommerce has several business models like affiliate marketing, retailing business models, membership websites, auction websites and specialty websites.

Affiliate marketing: In affiliate marketing, one gets to earn commission by referring customers to other website. Through this, more customers visit the affiliated website, thus resulting into more purchases. Affiliate marketing is one of the major business models used in ecommerce. There are various platforms available to help one make money through affiliate marketing. These platforms include Google AdWords, Clickbank, LinkShare, Commission Junction and Yahoo’s contextual advertising programs.

Brick and mortar retailers: As the name suggests, brick and mortar retailers operate physical shops in shopping malls and other public places. They offer products online and deliver the products to the customers through their vehicles. Brick and mortar retailers have the advantage of being able to exhibit their products and services to the entire public. By using ecommerce solutions, businesses have the option of reaching a wider audience through their websites.

Auction websites: An online auction is a platform where sellers offer products or services for sale at a price that is determined by market conditions. Ecommerce websites enable customers to post or bid on products or services. This helps sellers in selling their items without having the need to spend money on overhead costs such as rent and labour. These auction websites allow users to promote their products for a price that matches the auctioneer’s highest bid.