Ecommerce Definition

Thinking about ecommerce and e-business: the practical aspects of the many types of business being conducted electronically.

Defining Ecommerce

An ecommerce definition? Selling online, with or through a website, or by means of email. Ecommerce or electronic commerce is usually subdivided into B2B (business to business: wholesale), B2C (business to customer: retail) and C2C (customer to customer: auctions and information portals). Much more demanding — and not usually served by off-the-shelf software — is e-business or electronic business, where information technology is applied to all aspects of company's operations. In e-business are to be found systems for CRM (customer resource management), ERP (enterprise resource planning), SFM (sales force management), SCM (supply chain management) and EP (electronic procurement).

Despite the adverse publicity, and the spectacular failures, ecommerce is here to stay. At the last count, some 56% of B2C and 70% of B2B ecommerce operations in the US were profitable, and online revenues may reach $218 billion by 2007.

But what has changed is the attitude of ecommerce merchants and investors. Gone are the days of equating ecommerce with immediate profit. Ecommerce is a business, and a demanding business at that. Management skills are essential, plus a good deal besides, but the accumulating studies and case histories are making requirements clearer.

This site summarizes those findings, pointing you to the best sources for the details.

Types of Ecommerce

Ecommerce comes in forms that are continually evolving. E-merchants should find their particular areas of interest covered by the RH panel, but we would suggest you:

• Skim through all the topic pages. Though different skills, business resources and software apply to each type of ecommerce, solutions in one category may suggest applications to others. Moreover, like any other market sector, the fortunes of individual companies are affected by global perceptions, and an understanding of what others are doing may enable you to see your own business better.

• Develop what you need now, but make provision for later expansion. If an online catalog with orders taken by email or telephone is all that's required, then that's the website you should build. Nonetheless, you'll probably want to update from a product database in time, and perhaps take orders online after that. Neither is difficult to arrange if you don't restrict yourself with a cheap 'out of the box' solution. Make sure your business plan includes expansion in costed stages.

• Payment systems and marketing are often specific to ecommerce types, so make sure you have an integrated picture before deciding your ecommerce business.

• Stick with tried and tested technology that exists now. Design companies love winning awards with innovative graphics and coding, but you pick up the bill when things go wrong.

• Size up the challenges properly. To break into an oversupplied, mature market will require radical thinking, and probably a new scale of funding. Make sure you have both before diving in.

 

Click on links under "ECommerce Types" opposite to view the individual sections, each of which is provide with a resources page of best Internet sites for products, services and additional information.

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