Introduction to E-commerce

E-Commerce - What is it?
E-commerce stands for Electronic Commerce and is simply the process of purchasing goods and supplies over the Internet. It is also known as Online Shopping.

E-commerce is big business. In the first six months of 2002 British shoppers spent approximately £ 3 billion online. 

The theory behind online shopping is really quite easy to understand. Instead of investing in retail units (shops), stock and staff, businesses invest in the development of their E-commerce website. In this way savings can be passed onto you - the consumer. However this is not necessarily true of all e-commerce sites.
Quite often savings exist but on smaller priced items any potential savings can be swallowed by the added charges for shipping the product to you. In general terms products that are purchased through E-commerce should be cheaper than purchasing in-store.

Saving money is just one of the potential benefits of using online shopping. There are many other advantages to consider. A simple benefit to bear in mind is the convenience of e-commerce. You can shop at any time - the website is always open unlike the shop. The convenience factor also applies to the fact that you do not have to visit the shop to make a purchase either - nor do you have to deal with parking and carrying your shopping back to the car. One huge benefit of e-commerce, which everyone will appreciate, is that you avoid the whole issue of queues!

Comparative shopping is another advantage to E-commerce. It is much easier to check the prices for the item you want in dozens of stores/ websites by sitting in front of your PC rather than walking up and down the high street.
It is also easier to find rare and unusual items by browsing the Internet - items which would literally take dozens of phone calls or several shopping trips to locate normally.

There is generally more choice available on the Internet. For example you can shop globally through E-commerce. You are not restricted to the businesses or shops in your locality. One note of caution - if you do decide to buy that rare record from Memphis, Tennessee - be aware that you will have to pay shipping charges accordingly.

The Internet is also a fantastic resource in terms of research and information gathering prior to deciding which product you wish to purchase.

As you can see there are numerous advantages to E-commerce and the Internet in general. 

However there is currently a stigma attached to shopping online and E-commerce in general. It is very similar to the apprehension that people exhibited when TV shopping was first introduced and even when automated cash dispensers (cash points) first appeared on our high streets. TV executives will tell you that a prospective TV shopper would watch 30 hours before committing to their first purchase and we would question if Internet shopping is simply undergoing the same process whilst people familiarise themselves with the concept?
One thing is for sure; in ten years time (if not sooner) everyone will be shopping online and wondering why they ever hesitated beforehand.

The advantages achieved through E-commerce considerably outweigh the disadvantages. However in the interests of impartiality it would be unfair if we did not mention some of the negatives.

People consider the biggest issue to be the threat of credit card fraud. Please note the THREAT of credit card fraud NOT actual credit card fraud. This is indeed a topic that needs addressing in more detail. Please read our comments on credit card fraud and more importantly the procedures in place to stop credit card fraud.

As with credit card fraud, the other issues seem to be a problem of perception or lack of clear and factual information surrounding the Internet and E-commerce. Please click here to see our easy guide on the Pros and Cons.

Presently, however, online sales are rising at unprecedented levels - to see some interesting statistics on the entire Internet/ E-commerce revolution click here.