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Understanding eCommerce

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Written by Luke Terry / Posted April 10th

E-commerce or electronic commerce is truly a revolution of technology. Though the wonders of the internet, businesses from around the world are able to sell, buy, market, and service their products and assist their customers with questions and concerns. In short, the virtual environment that the internet provides has become yet another playing field for commerce to take place upon. Are you ready for the games?

At first, the idea of e-commerce was limited to the idea of handling financial transactions in an electronic manner. That is, when you first were able to send orders for products from one place to another via EDI (Electronic Data Interchange) or money through EFT (Electronic Funds Transfer), this was considered ground-breaking. However, the real changes and innovations began when the world started to rely on credit cards in order to make financial decisions and purchases. The idea of the ATM to disperse money from your bank was something that created easily accessible funds that could then be spent just as quickly.

But paper money was not the final answer when it came to the beginnings of the internet. It just wasn’t a feasible method of currency exchange. If someone in Bangladesh wanted to buy something from Detroit, sending a check or wiring money was a long and often expensive process – enter in the idea of e-commerce. E-commerce began once businesses realized that they were limiting themselves with the idea of a physical store. By creating a virtual outlet for selling, they were opening up the possibility of profit to a larger scale. The internet was cheap and not too many people were online at first, making it a tool for creating a lack of competition and increasing one’s reputation.

Businesses can do so much with the internet these days in e-commerce:

• Provide goods and services to countries around the world
• Market their business at all times of the day, on all days
• Process payments and shipments instantly
• Provide customers with relevant information in order to increase the business’ repute
• Offer safe and secure payment processing with payment gateways and services like preCharge
• Create various websites for different world markets
• Create vivid online catalogs and shopping carts so that customers can shop from the comfort of their homes

And the real advantage to e-commerce is that once a website is in place and functional, it becomes an excellent, if not passive way to earn income. Businesses can be created and maintained with minimal effort and expense, while products can be sold and shipped without little action needed from you. With the use of a payment processor, businesses can accept all forms of payment, verify that payment, and get instant access to profits.

E-commerce is something that can not be denied or avoided. In fact, the more that you know about how you can make the internet work for you, the better for your business as well as for your financial goals. While the environment may be virtual, the truth is that customers buy more on the internet than they do in stores – why not take this knowledge and make it work for you? Contact us (Sorry had to get that one in!)

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