CHAPTER 1 INTRODUCTION

Ecommerce or "electronic commerce" is the trading of goods and services online. The internet allows individuals
and businesses to buy and sell an increasing amount of physical goods, digital goods, and services electronically. We
have built “EVARA” the name of our website.

Some businesses sell exclusively online or use ecommerce to expand the reach of their other distribution channels.
Either way, ecommerce is thriving and can be a profitable venture. Let’s dive into the details of how ecommerce
works and find out if it’s right for you. Ecommerce offers people the convenience of shopping from their computers,
phones, tablets, and other devices. They visit websites, social media pages, and other virtual channels to find what
they’re looking for. Entrepreneurs, startups, small and medium-sized businesses, and large retailers can all use
ecommerce to reach customers across the globe.

Selling online might be a business’s sole revenue source, or it might be part of a multi-channel selling strategy. For
example, a large brick-and-mortar retailer might adopt an online sales channel, or an entrepreneur might sell a
small number of specialty handcrafted goods through a social media site like Facebook, Instagram, or Pinterest.

Another ecommerce example is social media commerce. Some websites like Facebook support online purchases. A
business that generates revenue solely through its presence on social media, or entrepreneurs who supplement
their income using social media marketing techniques, are also engaging in social media commerce.

Other ways you can participate in e-commerce include building standalone websites, or setting up shop on an
established selling website. For example, you can create a storefront to represent your brand in the Amazon store.
How does ecommerce work?

Ecommerce works by connecting sellers with customers and allowing exchanges to take place online. It can work in
many different ways and take many forms. Here’s a general overview of how the process can look:

● The seller chooses online selling channels, like a website or social media, and promotes products or
services for sale.

● Customers find the products or services and place orders.

● A payment processor enables the exchange of the goods or services electronically via payment options
like credit cards or digital currencies.

● The customer receives a confirmation email or SMS along with a printable receipt.
● If the transaction is for goods, the seller ships the products and sends the customer a tracking number
via email or SMS. If the transaction is for a service, the service provider can reach out to schedule and
complete the service.

Along the way, many ecommerce tools and technologies work together to help make online purchases possible. On
the technical side, the transaction can depend on data, logistics, warehousing, supply chains, and other systems and
processes.

What types of e-commerce are there?

Ecommerce takes as many different forms as there are various ways to interact with online channels. For example,
sellers and buyers exchange goods and services through m-commerce, enterprise commerce, and social selling
destinations like Amazon Live.

A few common business models are:

● B2C: Businesses sell to individual consumers, sometimes called the “end customer.”
● B2B: Businesses sell to other businesses. Often the buyer resells products to the consumer.
● C2B: Consumers sell to businesses. C2B businesses allow customers to sell to other companies.
 ● C2C: Consumers sell to other consumers. Businesses create online shopping destinations to connect
customers.

● B2G: Businesses sell to governments or government agencies.

● C2G: Consumers sell to governments or government agencies.
● G2B: Governments or government agencies sell to businesses.
● G2C: Governments or government agencies sell to consumers.

Business models can also vary. You might make direct sales, offer customer subscriptions, or earn money through
affiliate marketing and other methods.

Fig 1.1

What are the advantages and disadvantages of ecommerce?

It’ll depend on your business goals, your intended audience, and other factors. Here are some considerations.

Benefits of ecommerce 1)Accessibility and convenience

Ecommerce owes its rapid growth in part to the ease of access to products and speed of placing purchases. Once
set up, an online store is open 24 hours a day without the need to be monitored or staffed like a physical store.
Customers can browse a broad selection of offers from around the world, from anywhere with an internet
connection, and place purchases with just a few clicks.

2)Direct access to customers

The internet gives businesses direct-to-consumer access along with the ability to build relationships with specific
audiences and earn customer loyalty. You can tailor your brand image and marketing to fit customer wants and
needs right down to special offers and personalized product recommendations.

3)Global marketing reach

In the past, a business’s reach was limited by the number of people able to physically enter through a store’s front
doors. Today, the internet allows you to reach customers across the world. Make use of a wide variety of digital
marketing and advertising options like cost-per-click (CPC) ads and virtual bundles to reach a diverse new mix of
customers. Creating and maintaining a website can be less expensive than running a brick-and-mortar store. We can
start an online business channel without leasing retail space, hiring a team of employees, or having a large
warehouse. Benefit from low overhead when you don’t need to pay rent or worry about building maintenance.

4)Advances in technology

A wide range of specialists and businesses, including Software as a Service (SaaS) providers, are continually
innovating and finding new ways to improve the online shopping experience. Emerging technologies like artificial
intelligence (AI) increasingly play a role in helping with tasks from managing stock levels and storage to delivery and
returns. Customers can also make voice-assisted purchases, enjoy personalized shopping experiences, and try out
products with augmented reality. A low barrier to entry can translate to high competition. It’s important to select
products with care and conduct thorough competitor research to zero in on profitable product ideas.
 5)High Competition

Once you find success in a niche, be on the lookout for counterfeiters and other forms of infringement. Look into
ways of dealing with bad actors like Amazon’s Report a Violation tool. Available to brands registered in Amazon
Brand Registry, a free resource to help you build and protect your brand, this tool lets you search the Amazon
catalog for potential violations of your active trademarks, copyrights, and patents.

Fig 1.2

Challenges of e-commerce

1)Limited interaction with customers and products

If your business relies on interacting with customers in person, it could be a challenge to expand into ecommerce.
Alternatively, if you prefer communicating with customers via email or phone, this drawback might be a huge plus.
But keep in mind customers could be deterred by a limited ability to test out or try on products. You’ll also need a
system for handling returns or exchanges.
 2)Reliance on technology

While technology can be a major benefit, technical difficulties can negatively impact sales. Just as a
hiccup in your supply chain can prevent timely delivery of products, internet issues or a hard drive
failure could cost you time and money. Remember, for every technical issue you might encounter,
there’s probably a solution or a preventative measure you can take, like backing up your data
regularly. You can also lean on the reliable infrastructure of an established store like Amazon.

3)Data security concerns

Placing a purchase online and sharing payment details and other sensitive information can be a big
barrier for customers. To earn customer trust and convert shoppers to buyers, transparently share
details on your privacy policy and security precautions, like secure payment processing and how you
safeguard personally identifiable information. You can communicate this via your web presence and
in your terms and conditions.

4)Difficulties with Returns

Another disadvantage is that it can be difficult to return products that have been bought online. This
is because businesses often require the product to be returned in its original packaging, which may
not be possible if the product has been used. There may also be shipping costs involved in returning
the product.

5)Lack of Trust

There may be a lack of trust among consumers when it comes to buying goods and services online.
This is because they may be afraid of being scammed or not receiving the product that they ordered.