E-commerce: meaning, and functions - SS1 Commerce Lesson Note

E-commerce, short for electronic commerce, refers to the buying and selling of goods, services, or information conducted over the internet or through electronic means. It involves online transactions and the use of digital technologies to facilitate commercial activities. In simple terms, e-commerce can be understood as the process of conducting business online.

Functions of E- commerce

The functions of e-commerce revolve around the various activities and processes involved in online buying and selling and they include:

· Online Shopping: E-commerce enables customers to browse and purchase products or services online through websites or mobile applications.
· Digital Marketing: E-commerce heavily relies on digital marketing to promote products or services to a wider audience. Digital marketing strategies include search engine optimization (SEO), social media marketing, email marketing, and online advertising.
· Secure Payment Systems: E-commerce functions include the implementation of secure payment systems to facilitate online transactions. Customers can make payments using various methods such as credit cards, debit cards, digital wallets, or bank transfers.
· Order Fulfillment and Delivery: E-commerce involves the smooth processing of orders and the efficient fulfillment of customer requests. This function includes inventory management, order processing, packaging, and shipping.
· Customer Service and Support: E-commerce platforms prioritize customer service and support to enhance the overall shopping experience. They offer channels for customers to reach out for inquiries, assistance, or to resolve any issues.
· Data Analytics and Personalization: E-commerce functions leverage data analytics to gather insights into customer behavior, preferences, and purchase patterns. This data is used to personalize the shopping experience, recommend products based on previous purchases, and offer personalized promotions.
· Online Reviews and Feedback: E-commerce functions encourage customers to provide reviews and feedback about their shopping experiences. These reviews help other potential customers make informed decisions and also provide valuable insights for businesses to improve their products, services, and overall customer satisfaction.