We, humans, are known to have known the most evolution, not only biologically but in every way possible. From the Barter system, we have evolved to using money in exchange for the materials we need. And from there, we have reached to where online transactions have become possible and are being used widely. Once horses were the basic requirements for traveling and now, who doesn’t have a car or a motorbike?
E-commerce, online selling, and buying of products or services has grown enormously since it was first introduced but it still has a long way to go. We understand something better when we are aware of how it works. So, this article will brief you about how it works.
Buying or selling anything, without any doubt includes transaction, the basic exchange of money, which makes it the first and most important part of any E-commerce business. In physical stores, one would pick the product of their choice, walk to the counter pay in cash or via card and walk out the store with that product and this is the transaction. The only difference between this and online transactions is that we don’t get to examine the product physically, not until it arrives at the provided address. Apart from means of transactions and availability of goods, the method of dispatching and delivering the goods is also required.
So, now we answer the question on the table,
What are the components of E-commerce?
A web server that allows us to provide a platform to the customers where they can choose from the options of the products available and a method of payment, a database system that would keep in check the availability of stock in the store and a dispatch system linked to a warehouse where goods can be instantly located, packed and sent to the address that has been provided. The database system is not a compulsory component in all the E-commerce business. There are small-scale online businesses that simply publicize their products, take orders and work out the availability of goods and manage dispatch and delivery of the products. For individual or very small-scale business, a database managing their stock and goods could be in their head or in simply a notebook that keeps a note of products sold and left, while dispatch could simply include going to the local post office with the address of the person who has placed the order.
In the simplest words, what are the steps included in any basic E-commerce business?
If one is aware of using online stores like Amazon or Flipkart, would already be familiar with this procedure.
A web server leads us to an online platform that provides us with the stock to choose from. Here, the database helps us in providing if the desired stock is available or not. After choosing the product they are directed to providing with the address where they wish the product to reach. After this, they would be directed to choose from various options for the method of payment. This then completes the work of the consumer for the time being and now is the work of the business. They pack the product in the warehouse and dispatch it to reach to the place from where it would be delivered to the desired address. The customer receives it and the business deal is complete.