Ecommerce, also known as electronic commerce or internet commerce, is the buying and sale of goods and services over the internet, as well as the financial and data transfers used to complete these transactions. Ecommerce is often used to refer to the online selling of physical goods, but it may also refer to any type of commercial transaction that is made possible by the internet.
Types of E-commerce models
- Business to consumer: When a business sells a good or service to an individual consumer (e.g. You buy a pair of shoes from an online retailer).
- Business to business: When a business sells a good or service to another business (e.g. A business sells software-as-a-service for other businesses to use)
- Consumer to consumer: When a consumer sells a good or service to another consumer (e.g. You sell your old furniture on eBay to another consumer).
- Consumer to business: When a consumer sells their own products or services to a business or organization (e.g. An influencer offers exposure to their online audience in exchange for a fee, or a photographer licenses their photo for a business to use).
E-commerce security threats
- Financial frauds – online transactions, buying and selling of goods enhanced online frauds. spying online and taking out the information about the user’s credit card or debit card unethically. In this era of modernization everyone, another person is a fan of online transactions and e-commerce it has increased the cases of online fraud. Types of financial fraud :
- Credit card fraud: It occurs when a cybercriminal purchases items from your e-commerce store using stolen credit card information. In most cases, the delivery and billing addresses are different. Installing an AVS – Address Verification System – on your store will detect and stop such activities.
- Return fund and fake returns: The bad guys carry out illegal transactions and cover their tracks, causing companies to lose a lot of money. Some hackers also commit refund fraud by submitting bogus return requests.
- Phishing – Several e-commerce stores have reported that their customers have received messages or emails from hackers posing as legitimate store owners. To trick users into believing them, fraudsters show fake copies of your website pages or pages from another legitimate website.
- Spamming – Infected links may be sent via email or social media inboxes by some bad actors. They may also include these links in their blog posts’ comments or tweets, as well as communication types. When you click on one of these links, you will be directed to one of their spam websites, where you can become a victim. Just a click on any suspicious link and you end up being trapped in a scam.
- Malware: Hackers can create malicious software and install it without your knowledge of your IT and computer systems. Spyware, worms, Trojan horses, and ransomware are examples of malicious software. Trojan Horses could have been downloaded onto the networks of your clients, administrators, and other users. These programs can easily steal any confidential information from infected systems and can even infect your website.
- Taking advantage of known vulnerabilities: online frauds keep an eye on the common mistakes an online store makes and take advantage of it.
- Developing bots: Some attackers create special bots that scrape your website for inventory and price details. These hackers, who are normally your rivals, will then use the information to lower prices on their websites, thus reducing your sales and revenue.
- Brute force: Players will use brute force to target your admin panel and break your password in the online world. In order to obtain the password, these fraudulent programs bind to your website and try thousands of combinations. Often use solid, complex, and difficult-to-guess passwords. Often, change the passwords on a regular basis.
- Being a middle man: A hacker might listen in on conversations between your e-commerce store and customers. A similar incident occurred at Walgreens Pharmacy Store. Such attackers may take advantage of a user who is linked to a weak Wi-Fi or network.
- E-skimming: E-skimming involves infecting a website’s checkout pages with malicious software. The intention is to steal the clients’ personal and payment details.
Benefits of E-commerce
- Low financial cost: One of the advantages of e-commerce is that it has a smaller initial investment. To rent one of their store locations, physical retail stores must pay up to thousands of dollars. They also have a number of up-front expenses, such as store signage, store construction, inventory purchases, sales equipment, and so on. Not to mention the fact that the store owner must recruit employees to operate and run each location.
- 24/7 income: The fact that online retailers are still open for business is another benefit of eCommerce. You can reach anyone at 11 p.m. or 4 a.m. in any part of the world with Facebook advertising. Most physical locations, on the other hand, are open from 9 a.m. to 9 p.m., giving you a competitive advantage. You will draw customers who would usually pick up a product in a store if it was available at all hours if you are available at all hours. People who cannot run errands or shop for themselves in the day due to their works or any other reasons can purchase easily with just a single click. E-commerce platforms captivate the audience because of their numerous benefits.
- Business on an international level: Selling internationally is a fantastic accomplishment because it allows you to develop your brand even faster, expand your market exponentially, and benefit well ahead of your local rivals. Plus, by following our international shipping tips, you can be able to prevent many of the problems that come with shipping goods across borders.
- Affordable employees : In comparison to a physical store, an online company would need fewer workers. One of the biggest benefits of starting an online company is that you don’t have to recruit staff right away. You can start and operate your own ecommerce company. Only when you’ve reached a certain level of success or have sufficient funds should you begin to assemble a team.
Disadvantages of E-commerce
- Inpatients customers: If a customer has a query in the shop, a salesperson is on hand to help. However, one downside of eCommerce is that most companies take a long time to respond to customer inquiries. The truth is that most consumers expect a response from a company on social media within an hour. They can become enraged and shop somewhere else if you take too long to react to their message.
- E-commerce is highly competitive : Another of the toughest ecommerce drawbacks is battling for customers. The truth is that the most profitable niches are frequently the most competitive. That is why they attract so many entrepreneurs. The more competitive a niche is, however, the more costly its advertisements are. There are a few ways to get around this. To begin, you may implement a marketing strategy that is distinct from that of your competitors.
- Shaken trust: customers cannot try the clothes or other things before purchasing something online that’s a drawback that some people shy away from online shopping.
Best E-commerce websites
- Taobao – Taobao is one of the top 10 e-commerce websites in the world with a massive user base of 500 million. The headquarters of this website is in China, and the parent company is Alibaba Group. It is a huge online shopping platform where you get to buy clothes accessories, jewelry, footwear, furniture, gadgets, etc.
- Amazon – Amazon is considered the world’s top e-commerce platform hence earns a spot in the top 10 e-commerce websites in the world. People love shopping on this website mainly because of the reason that the interface is simple, easy checkout, different payment methods, and have great discounts and offers.
- Flipkart –Flipkart is most popular in India and other Asian regions. At first, the site was launched as a bookstore and after it gained popularity more things started getting available here. Today you will find clothes, apparel, lifestyle, mobiles, televisions, accessories, laptops, and many other things.
- Walmart – Walmart malls are mainly popular shopping destination in the United States of America. However, now it has become one of the top 10 e-commerce websites in the world. It offers home appliances, toys, electronics, fashion accessories, sports, gifts, crafts, groceries, etc. Walmart also provides its customers with discount coupons, shipping, and interesting discounts on special days. It has a user-friendly interface which makes the whole shopping process easier and fun.
- E-bay-eBay is another amazing e-commerce website. You cannot just buy different products here; you also get to sell your products to the buyers. You can make your shopping store with the help of the eBay store web application and add your content, along with images and description and you are all set to start.
- Target –Target is undoubtedly a great online shopping platform where you can buy anything for men, women, kids, and products of various categories. Here you will find free shipment, easy process for buying, great offers and discounts, etc. At Target, you will find everything that one needs to use in one daily life.
- Alibaba –Alibaba is one of the top 10 e-commerce websites in the world that is primarily used for trading for buyers and sellers around the world. It is especially popular in Asia, and the concept behind this website is to generate an easy connection between the buyers and suppliers.
- Overstock – Overstock also makes its place among the top 10 e-commerce websites in the world. The website features an array of products ranging from bedding, clothes, furniture, jewelry, cars, etc. This online platform deal in high-quality products at great prices.
- Bestbuy – Best Buy is a very user-friendly website that offers electronics products in general. It always has the latest electronics, so if you are looking for a reliable electronic store, then this is it.
Additionally, it also provides installation and repair services on their products. They have some of the biggest names such as Dell, Samsung, Sony, HP, LG, etc. at cost-effective prices. So, if you are looking for electronics products, services, and installation, then Best Buy is the best place for you.
Impact of pandemic on E-commerce
The impact of pandemic on health, business is depressing . The year 2020 will be marked by dramatic changes that occur over the course of many nights, and the sense of confusion about health, industry, education, and even life will be gone. The global pandemic of COVID-19, which has now spread to almost every corner of the globe, has spared no one. Every day, the pandemic becomes more uncontrollable, and the officials in charge are unable to deal with it. Before the COVID-19 pandemic, factors driving the e-commerce market’s growth included strong and steady growth of internet users, growing awareness of online shopping, increased online product launches, low prices due to bulk purchases, and so on. Furthermore, due to direct distribution, there are a growing number of exclusive items on the market, as well as lower prices for goods. Furthermore, following the COVID-19 pandemic, customers are predicted to be more inclined to shop online due to social isolation and remaining at home. Consumer demand uncertainty and supply chain problems, on the other hand, may have an effect on the e-commerce industry. The COVID-19 pandemic is also affecting major retailers like Walmart, which is seeing a decline in casual shopping, supply chain disruptions, and an increase in the cost of goods sold. Electronics, healthcare, beauty & personal care, and other products are segmented in the global e-commerce industry report. Owing to the instability in the supply chain and market demand around the world, the COVID-19 outbreak had an effect on these segments. COVID-19, as well as factory closures in China, the United States, and other nations, are putting a strain on e-commerce supply chains.
How E-commerce helped in the pandemic
Due to the plight of covid 19 we have been forced to sit at our homes and in such tough times e commerce has been very helpful to the people ordering important items for home can be done just by a single click. Old aged people who cannot step out to buy groceries or other crucial things for a living can order it online. E-commerce gives a hand in many sectors booking online health checkups, getting the things important for day to day living. Covid -19 has resulted in deteriorating mental health of all age groups through e commerce therapists who a have their business online can be helpful too one can book an appointment easily.
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