E-commerce

What Is E-commerce?

E-commerce (electronic commerce) is buying and selling products or services over the internet. It’s like a digital marketplace where businesses and customers meet to conduct transactions online.

👆 By the way, an interesting fact: The first e-commerce transaction was a pizza order from Pizza Hut in 1994! Now, global e-commerce sales exceed $5 trillion annually, showing how far we’ve come from that first digital pizza purchase.

Why It Matters

Understanding e-commerce is crucial for:

1. Reaching global markets

2. Operating 24/7

3. Reducing operational costs

4. Scaling business efficiently

5. Meeting modern consumer needs

6. Competing in digital markets

Common Revenue Models

1. Direct Sales:

   • Single purchases

   • Subscriptions

   • Digital downloads

2. Marketplace:

   • Commission-based

   • Listing fees

   • Premium placements

3. Hybrid:

   • Omnichannel retail

   • Click and collect

   • Digital-first approach

Key Metrics to Track

Essential e-commerce metrics:

• Conversion rate

• Average order value

• Shopping cart abandonment

• Customer acquisition cost

• Customer lifetime value

• Return rate

Best Practices

To succeed in e-commerce:

1. Optimize for mobile

2. Provide excellent product images

3. Write clear descriptions

4. Offer multiple payment options

5. Streamline checkout

6. Maintain security standards