What Does Ecommerce Mean?

What Does eCommerce Mean? 

What does eCommerce mean? It’s the activity of buying and selling things electronically. E-commerce refers to any transaction that takes place online or over the Internet. The activities of e-commerce can range from business-to-business transactions to consumer purchases. In the end, this means that there are more ways to do business than ever before. Read on to learn more about this popular form of selling. In this article, we will discuss Business-to-consumer eCommerce, Business-to-business e-commerce, and the environmental effects of eCommerce. 

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Selling products online 

There are two types of products you can sell online: commodity and niche. Commodity products are in high demand and are essential for a living. These types of products make up the majority of online sales. Commodity products are often big brand products, such as shoes, bags, and clothing. Niche products are less common but serve specific customer needs. For example, you can sell second-hand items through online auctions or marketplaces. 

Traditionally, e-commerce has been associated with selling physical goods. This has changed over time. The eCommerce industry is now a $2.3 trillion industry. Selling non-physical goods online is now a popular choice for many companies, both small and large. Unlike traditional retail, the online retail market has better growth trends and more stability than its physical counterpart. Many vertical markets have also become largely online-based, and online retail is now a growing sector. 

Business-to-business e-commerce 

The concept of Business-to-Business (B2-B) e-commerce is well known to many business owners. It involves the exchange of orders among companies, usually through the internet. Often it is an important segment of the sales effort since it enables businesses to improve the efficiency of purchasing across different stakeholders. The emergence of online intermediaries and the digitization of processes have made B2-B e-commerce a viable option. 

While EDI is the oldest form of e-commerce, it is still relevant in today’s world and remains a common practice for Fortune 500 companies. Social media and several new technologies have contributed to the exponential growth of Business-to-Business e-commerce. These technologies make it possible to conduct trade on a round-the-clock basis. For example, e-government provides a platform for businesses and governments to bid for government contracts online. 

Environmental impact of eCommerce 

As an online business, you have a responsibility to reduce your carbon footprint and educate customers on how to be more environmentally friendly. Shipping products is one of the most environmentally-unfriendly aspects of eCommerce. Approximately two-thirds of all greenhouse gas emissions are caused by transport, largely from air travel and marine vessels. Even though you can ship locally from your warehouse, shipping products requires a great deal of energy. For this reason, eCommerce businesses should reduce their carbon emissions by adopting more efficient shipping methods. 

The environmental impact of eCommerce is not limited to shipping. According to estimates, shipping and returning products account for 37% of all greenhouse gas emissions produced by eCommerce. The increased speed of eCommerce shipping requires more air travel and large distances to be traveled in less time. It is estimated that carbon emissions resulting from product delivery are projected to rise 30 percent by 2030. Customers of eCommerce are increasingly interested in eco-friendly, cruelty-free, and durable products.