What is E-commerce

What is E-commerce, and how to create one?

What is E-commerce?

E-commerce is a way to sell and purchase products online. The most popular e-commerce platforms are Amazon, Ebay, and Alibaba. The e-commerce industry is growing rapidly (Consumers spend more than $861 billion online with U.S. retailers) because it offers convenience for both customers and businesses and can provide higher profit margins than traditional brick-and-mortar retail strategies.

E-commerce doodle

How does E-commerce work?

In E-commerce, sellers describe their goods and services on a personal website or online shop. Sellers also create an inventory to track the items they have sold or plan to sell. See this as a store where you can buy anything from any vendor whenever you want it. A customer can browse the store and buy your products.

The seller receives money from the purchase once the order has been processed. If the seller is selling some digital product, such as an ebook or software access code, they do not have to ship anything. Of course, if there is a physical good purchased, the seller does have to send it.

The benefits of e-commerce.

Online shopping has become increasingly popular for several reasons:

Saving time and money.

E-commerce is convenient and great for saving time and money. You can purchase products in the comfort of your home without having to stand in line or travel to a retail location. Some people work at jobs that don’t afford them much free time, giving them the freedom to shop at their convenience.

You can purchase products in the comfort of your home without having to stand in line or travel to a retail location. #ecom Click To Tweet

The ease of tracking orders.

You can track your order status and find out where a shipment is at any time. This makes it simple to see whether an item has been shipped or if it’s still sitting in a warehouse waiting for processing.

Greater selection of goods

There is a greater selection of goods on display due to competition between sellers. This benefits consumers greatly, as they have more options from which to choose. If you are looking for something specific but can’t seem to find it locally, you might be able to locate the item online. Many people start with an internet search and find they can purchase the item more affordable than at a retail location.

The word of mouse.

Many consumers do research online about products that they plan on purchasing. When people decide to buy based on what they have learned online, “word of mouse” advertising helps companies determine popular items and which ones can be phased out of production.

The downsides of e-commerce.

E-commerce has many benefits but also some drawbacks.


Scammers sometimes take advantage of online shoppers by getting them to wire money for an item that never arrives or by stealing their credit card information. Scammers may try to impersonate legitimate businesses. They use email and social media accounts to create fraudulent websites that look just like the real thing.

Security concerns.  

If you decide to order an item from a seller outside of your country, it’s essential to consider security issues. You may run into problems with customs officials because the article may be confiscated, and you could even face fines for bringing contraband items across a border.

High competition for stores.  

You must be able to offer competitive prices and quality products to stand out from other e-commerce businesses. High competition makes it difficult to make a profit unless you’re selling unique or high-end items. You can use online advertising, such as Google Ads or Facebook Ads, to boost your visibility and increase traffic on your website.

How to start an online store?

Here are the steps to follow to start your very own e-commerce store.

What do you want to sell?

Decide on a product or a service that you can offer online. Then, look around to determine the competition. Are there many other sellers from whom you will be able to compete? If not, then that is good news for you! You will have the opportunity to set up your own website and sell your items without having to worry about fierce competition.

Choose a name for your website.

A catchy name can be one of your most significant assets because it will help you attract traffic to your site. If you are not good at coming up with names for things, consider using a name generator that will provide you with possible options.

Buy your domain.

There are many domain registration services available for you to choose from. Search the internet and compare prices to find one that provides good value for your money.

Build an online store with Shopify.  

Shopify is an e-commerce platform that allows you to create your own online store in just minutes. It offers free website hosting, mobile apps, and 24/7 customer service. You can set up your business with Shopify quickly and easily.

Create a merchant account with Stripe.  

You will need a merchant account if you plan on accepting credit card payments. Stripe is the most popular payment processor for e-commerce businesses. It is also easy to sign up for, so you can start collecting online payments quickly.

Create your product or service description pages.  

Write copy that includes essential information about the item that you are selling. You can also add pictures, videos, or other multimedia to help illustrate your product.

Submit your website to Google and other search engines.  

It is vital to have good rankings on the major search engines to get traffic to visit your site. You should hire an SEO company that can provide you with assistance in this area.

Promote your e-commerce store.  

A good business should always have a plan for promoting its products or services to increase traffic and sales. You can choose to use Google Ads or other online advertising services, depending on what type of budget you have available. There are also many ways to get free publicity, such as by writing guest blog posts or making press releases.

How to avoid the risks involved in e-commerce?

E-commerce can be very lucrative, but it also involves many risks. These include the following:

Your website may be hacked or infected with malware.  

If you do not take the necessary security precautions, your business could be at risk for cyber attacks. You need to make sure that you take every possible step to protect your site and its visitors from hackers and other online threats.

You may receive counterfeit products.  

It can be very tempting to purchase products from suppliers that offer low prices, but you need to ensure that you are not buying counterfeit items. You can search the internet for reviews of your potential suppliers or ask a trusted friend to let you know what they think about them.

You may have difficulties getting your products to customers.

It is important to look at your order processing time for each product because many customers will leave negative reviews or abandon their carts if they feel like it is taking too long. This can be frustrating for business owners who are already juggling many responsibilities, but a good inventory management system can simplify this job.

You are dealing with shipping.  

If you have an e-commerce store that sells physical products, dealing with the shipping process will be part of your daily routine. You should try to find courier services or other shipping companies that provide you with the best rates. You should also look into software programs that can help simplify your shipping process and reduce the time it takes to get orders out.

An action plan.

Most businesses need to deal with more than one of these issues, so it’s essential to have a plan of action in place before you begin building your online store. Be sure to choose e-commerce software such as Shopify that can make the running of your business more efficient and cost-effective. 

Here are some E-commerce examples:

  1. Amazon: The biggest online store and marketplace in the world!
  2. Sears Holdings Corporation (Sears): An American chain of department stores.  
  3. Kohl’s: An American department store chain headquartered in Menomonee Falls, Wisconsin.
  4. Walmart: An American retail corporation that runs chains of large discount department stores and warehouse stores.  
  5. Cotton On Group Ltd.: an Australian clothing company specializing in women’s fashion and homewares. 
  6. Nordstrom: an American luxury department store chain.
  7. TigerDirect: An American computer hardware and software retailer with nearly 200 retail outlets worldwide.
  8. Target Corporation: An American mass merchandiser headquartered in Minneapolis, Minnesota.  
  9. Nordstrom Canada Inc.: The Canadian subsidiary of Nordstrom. 


E-commerce is a very popular business model, and it can be very lucrative if you get all of the tasks required to operate an online store done correctly. If you have the correct information to guide you through setting up your e-commerce business, then there should not be any significant problems along the way.

To create a successful E-commerce business, look for a reliable e-commerce solution. I recommend you to try out Shopify. It offers everything that you will need to start your E-commerce store. Click Here to get the 14-day free trial version without any credit card required.

Best of luck.