Objectives of E Commerce : All You Need To Know

Introduction

Objectives of E Commerce successfully is both intriguing and daunting. Unlike traditional 9 to 5 jobs, running a business involves constantly facing new challenges and taking risks. As the sole owner of the business, the weight of its success or failure rests solely on your shoulders. This constant pressure to satisfy customers and navigate potential pitfalls can make the journey of entrepreneurship both exhilarating and nerve-wracking.

In the past, businessmen relied mainly on traditional marketing strategies such as physical storefronts to promote their products and services. However, in recent decades, there has been a shift in perspective among business owners. Along with traditional marketing, they have also begun to utilize online platforms to reach a wider audience. This transition into online marketing gave rise to the term ecommerce and its corresponding Objectives of E Commerce.

Objectives of E Commerce refers to the electronic exchange of goods and services through digital means. This includes making payments electronically as well. But how exactly do ecommerce businesses operate? What are the different types of ecommerce businesses?

What is Ecommerce?

The origins of trade can be traced back to ancient times, but it wasn’t until about 2500 years ago that the use of metal coins for buying and selling goods became prevalent. This marked a significant development in the history of commerce, as it allowed for a standardized system of exchange.

Throughout the centuries, the need for trade has continuously driven innovations in transportation. From horses and handcarts to modern modes of transport like trucks, airplanes, and ships, the movement of goods has played a crucial role in shaping our world.

However, in recent times, there has been a significant shift in how we engage in commerce. With the rise of ecommerce, traditional concepts of money and transportation have been challenged. Now, many transactions take place online through advanced technology that eliminates the need for physical currency or physical transportation.

Objectives of E Commerce , commonly known as Ecommerce, has revolutionized the way goods and services are bought and sold. It refers to the process of conducting business transactions through an online platform, making it convenient for both buyers and sellers. The term “ecommerce” is derived from the words “electronic” and “commerce”, highlighting the fact that this type of trade takes place over an electronic network, particularly the internet.

Objectives of E Commerce operates in various market segments, catering to a wide range of industries and consumer needs. It can be accessed through various devices such as laptops, computers, smartphones, tablets, and other smart devices. This allows consumers to shop at their convenience from anywhere with an internet connection. Furthermore, ecommerce offers a vast array of products and services for purchase, making it a one-stop destination for all consumer needs.

How does Ecommerce work?

When setting up an Objectives of E Commerce business, the first crucial step is to establish a clear objective for the ecommerce system. While there may be variations in the way different ecommerce systems operate, they all share common elements. In order to provide a better understanding of how an ecommerce system functions, let us consider the following example.

Imagine a customer, comfortably seated at his laptop in his own home, browsing through various online stores for a pair of gym training shoes. Once he finds what he is looking for, he clicks on the “order” button and his Web Browser begins communicating with a Web Server that manages the website of the particular store he is ordering from. This Web Server then forwards the customer’s order to an order manager, also known as the central computer. This central computer oversees every stage of order processing, from receiving the initial order to ensuring its delivery to the customer.

Following the initial processing of the order, the order manager continues its duties with the assumption that all necessary items are in stock. This includes communicating with a merchant system, which is typically linked to a bank or card processing firm, to receive payment from the customer. This involves using the debit or credit card number provided by the customer to complete the transaction.

As part of this process, the merchant system also contacts the customer’s own banking system to confirm whether there are sufficient funds available for the purchase. Once this verification is complete, the merchant system authorizes the transaction to proceed while also notifying the order manager of its success. The order manager then communicates this information back to the web server, which in turn displays a webpage conforming to the customer that their transaction was successful and their order has been processed.

The History of Ecommerce – How did it all begin?

The origins of Objectives of E Commerce can be traced back over 40 years ago, when early forms of technology like Electronic Data Interchange (EDI) and teleshopping were first introduced in the 1970s. These advancements paved the way for the modern-day ecommerce stores that we are familiar with today.

However, the history of Objectives of E Commerce is closely intertwined with the history of the internet. It wasn’t until 1991, when the internet was opened to the public, that online shopping became a viable option. This allowed businesses to reach a wider audience and offer their products and services online. One of the pioneering ecommerce sites was Amazon, which began selling products online in the United States. Since then, thousands of businesses have followed suit, leading to the rapid growth and evolution of ecommerce.

The rise of Objectives of E Commerce has been driven by factors such as safety, convenience, and an enjoyable user experience. As technology continues to advance, so does the overall experience of online shopping.

During the 1980s, a revolutionary company called Boston Computer Exchange (BCE) emerged as the world’s first ecommerce company, revolutionizing the way used computers were bought and sold. Despite the limited availability of the Internet to the general public at that time, BCE was already in full operation in the United States. Meanwhile, in 1992, Charles M. Stack founded another groundbreaking online venture – Books Stacks Unlimited – which eventually grew into a popular American online bookstore with half a million monthly visitors. This success led to the launch of Books.com in 1994, further solidifying Stack’s position as a pioneer in the ecommerce industry.

The same year also marked another significant milestone in ecommerce history with the introduction of Netscape Navigator – a web browser developed by Netscape Communications Corp. This revolutionary tool transformed the internet from a text-only experience to one that was rich with graphics and visual elements.

Features of Ecommerce

Objectives of E Commerce has become a necessity for businesses, both big and small. To thrive in the online world and compete effectively, it’s crucial to comprehend the workings, features, and objectives of e-commerce.

Technology-Enabled Ecommerce: The integration of digital technology with commercial transactions defines e-commerce. The internet, World Wide Web, and various protocols form its technological foundation.

Ubiquitous in Nature: Unlike traditional businesses confined to a city, e-commerce operates globally. It’s a virtual marketplace accessible through devices like phones and computers, allowing customers worldwide to buy and pay online.

Large Customer Reach: Objectives of E Commerce breaks national boundaries, connecting businesses with millions of customers globally.

Technology Mediated: In Objectives of E Commerce , transactions occur in cyberspace, eliminating the need for face-to-face contact.

Universal Standard: E-commerce websites adhere to globally accepted methods and systems, maintaining universal standards for efficient user experience.

Interactive Platform: Two-way communication between businesses and users is a key feature. Interactivity helps address user issues and enhances the overall experience.

Rich in Content and Delivery of Information: E-commerce serves as a communication channel with low-cost, high-density information delivery through text, images, audio, and video.

Virtual Communities: Online communities, like chat rooms, enable interaction among people with common interests.

Personalization: E-commerce offers customized services based on past purchase history, providing personalized recommendations to individual customers.

Interdisciplinary in Nature: Successful e-commerce implementation requires knowledge of technological, managerial, social, legal, marketing, financial, and consumer behavior aspects.

Ease of Checkout: An easy-to-use platform with various payment options is essential to convert browsers into buyers.

Reporting Tool: While not mandatory, a reporting tool improves user experience by quickly identifying and resolving issues.

Integrated Blog & Articles Section: Including blogs and articles not directly related to products enhances the business image and increases website traffic.

These features collectively contribute to the success of an e-commerce business and help achieve its objectives.

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Types of Ecommerce

In this modern age, the idea of living without Objectives of E Commerce seems almost impossible. The reliance on online commerce has become ingrained in our daily routines, making it a crucial aspect of our lives. However, Ecommerce was not always a prevalent concept. It was only a few decades ago that the idea and Objectives of E Commerce emerged.

Today, Ecommerce encompasses a wide range of activities, from paying bills online to purchasing groceries and other products. It has become an integral part of our lives, making tasks more convenient and accessible.

With the rise of Ecommerce, businesses have also evolved to adapt to this new market. Depending on their products, services, and organizational structure, companies can choose from various types of business models to operate in the world of Ecommerce. Some popular options include traditional online retail stores selling physical goods, digital marketplaces connecting buyers and sellers, subscription-based services providing recurring products or services, and dropshipping businesses that rely on third-party suppliers for their inventory.

Business to Consumer (B2C):

Definition: In B2C e-commerce, businesses sell products or services directly to consumers.
Example: Online retail stores, like Amazon or Zappos.

Business to Business (B2B):

Definition: B2B e-commerce involves transactions between businesses. One business sells products or services to another.
Example: A wholesale distributor selling products to a retailer.

Consumer to Consumer (C2C):

Definition: C2C e-commerce involves transactions between individual consumers. Individuals sell products or services directly to other individuals.
Example: Online marketplaces, such as eBay or Craigslist.

Consumer to Business (C2B):

Definition: In C2B e-commerce, individual consumers sell products or services to businesses.
Example: Influencers or freelancers offering their services to businesses.

Business to Administration (B2A):

Definition: B2A involves e-commerce transactions between businesses and public administration or government bodies.
Example: Online payment of taxes or government procurement systems.

Consumer to Administration (C2A):

Definition: C2A e-commerce involves transactions between individual consumers and public administration or government bodies.
Example: Online payment of utility bills or renewing a driver’s license.

Mobile Commerce (M-Commerce):

Definition: M-commerce refers to e-commerce transactions conducted on mobile devices, such as smartphones or tablets.
Example: Mobile banking apps or mobile shopping apps.

Social Commerce:

Definition: Social commerce involves using social media platforms to facilitate e-commerce transactions.
Example: Selling products directly on platforms like Instagram or Facebook.

Voice Commerce (V-Commerce):

Definition: V-commerce involves using voice-activated devices (like smart speakers) for online shopping.
Example: Ordering products through voice commands on devices like Amazon Echo.

Cross-border E-commerce:

Definition: Cross-border e-commerce involves online transactions that occur across international borders.
Example: A customer in the U.S. buying products from an online store based in China.

Collaborative Commerce (C-Commerce):

Definition: C-commerce involves collaboration between two or more individuals or entities to create value in e-commerce.
Example: Crowdfunding platforms where multiple users contribute to fund a project.

Objectives of E Commerce

The Objectives of E Commerce revolve around leveraging digital platforms to achieve various business goals. Here are some key objectives:

Increase Sales: E-commerce aims to boost sales by providing a convenient and accessible platform for customers to browse, choose, and purchase products or services online.

Global Reach: The objective is to overcome geographical limitations and reach a global audience. E-commerce allows businesses to transcend borders and cater to customers worldwide.

Cost Efficiency: E-commerce seeks to reduce operational costs associated with traditional brick-and-mortar stores, such as rent, utilities, and staffing. It aims for efficient and streamlined processes.

24/7 Availability: E-commerce platforms are designed to operate 24/7, providing customers with the flexibility to shop at any time. The goal is to eliminate time constraints and cater to diverse time zones.

Enhance Customer Experience: E-commerce focuses on providing a seamless and user-friendly experience. This includes easy navigation, secure transactions, and personalized recommendations to improve overall customer satisfaction.

Data-driven Decision Making: E-commerce businesses aim to gather and analyze data from customer interactions to make informed decisions. Understanding customer behavior helps in tailoring marketing strategies and improving products or services.

Expand Customer Base: E-commerce seeks to attract new customers and retain existing ones. Marketing efforts, such as targeted promotions and social media engagement, contribute to expanding the customer base.

Build Brand Reputation: Creating a positive online presence is a key objective. E-commerce businesses aim to build a strong brand reputation through quality products, excellent customer service, and positive reviews.

Adaptability and Innovation: E-commerce thrives on innovation. Businesses aim to stay ahead by adopting new technologies, implementing innovative features, and adapting to changing market trends.

Efficient Inventory Management: The objective is to maintain optimal inventory levels, reduce stockouts, and avoid overstock situations. E-commerce businesses use technology to manage inventory efficiently.

Facilitate Secure Transactions: Security is a paramount objective in e-commerce. Ensuring secure transactions and protecting customer data from breaches is critical to building trust.

Mobile Optimization: With the increasing use of smartphones, e-commerce aims to optimize platforms for mobile devices. The objective is to provide a seamless shopping experience on various screen sizes.

Drive Customer Loyalty: E-commerce businesses aim to foster loyalty by offering rewards programs, personalized discounts, and excellent customer service. Repeat business is crucial for long-term success.

Cost-effective Marketing: E-commerce leverages digital marketing channels for cost-effective promotions. The objective is to reach a targeted audience through channels like social media, email marketing, and search engine optimization.

Diversification of Revenue Streams: E-commerce businesses often explore multiple revenue streams, such as subscriptions, partnerships, or affiliate marketing, to diversify income sources.

Overall, the objectives of e-commerce align with creating a dynamic, customer-centric, and technologically advanced business model that adapts to the evolving digital landscape.

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Objective of Ecommerce in Online Business

Let’s focus on the specific Objectives of E Commerce in the context of online business:

Increase Online Sales Objectives of E Commerce : The primary objective is to drive and maximize sales through the online platform. E-commerce aims to be a robust channel for generating revenue.

Expand Market Reach Objectives of E Commerce: E-commerce enables businesses to reach a wider audience beyond their local markets. The goal is to tap into new customer bases and demographics.

Improve Customer Engagement Objectives of E Commerce: E-commerce platforms aim to enhance customer interaction through features like live chat, reviews, and personalized recommendations. Engaged customers are more likely to make repeat purchases.

Optimize User Experience Objectives of E Commerce : Creating a seamless and user-friendly online experience is a key objective. This involves easy navigation, clear product information, and a smooth checkout process.

Build Brand Awareness Objectives of E Commerce: E-commerce contributes to building and strengthening brand awareness. Businesses aim to establish a distinctive online presence that reflects their brand identity.

Enhance Customer Loyalty Objectives of E Commerce: By providing excellent service, personalized experiences, and loyalty programs, e-commerce businesses aim to foster customer loyalty, encouraging repeat business.

Data-driven Decision Making Objectives of E Commerce : E-commerce objectives include leveraging data analytics to gain insights into customer behavior, preferences, and market trends. This data informs strategic decisions.

Cost Efficiency Objectives of E Commerce : Online businesses seek to reduce costs associated with traditional retail, such as rent and staffing. E-commerce aims to be a cost-effective channel for conducting transactions.

Mobile Optimization Objectives of E Commerce : Given the prevalence of mobile devices, the objective is to optimize the online platform for mobile users. Mobile-friendly websites and apps enhance accessibility.

Security and Trust Objectives of E Commerce : Building trust is crucial in e-commerce. Ensuring the security of online transactions and protecting customer data are key objectives to establish and maintain trust.

Efficient Inventory Management Objectives of E Commerce : E-commerce businesses aim to manage inventory efficiently, minimizing stockouts and overstock situations. This involves real-time tracking and automated systems.

Adaptability to Technology Trends Objectives of E Commerce: E-commerce objectives include staying ahead of technological advancements. Businesses aim to adapt to emerging trends such as AI, AR, and voice commerce to remain competitive.

Social Media Integration Objectives of E Commerce : E-commerce platforms often integrate with social media to reach customers on popular platforms. The objective is to leverage social networks for marketing and sales.

Content Marketing Objectives of E Commerce : Online businesses use content marketing to educate, inform, and engage customers. The objective is to create valuable content that attracts and retains a target audience.

Streamlined Logistics and Fulfillment Objectives of E Commerce: Efficient order fulfillment and delivery processes are essential objectives. E-commerce businesses aim to provide timely and reliable delivery services.

How to write the objective of E Commerce for Companies?

Crafting an effective Objectives of E Commerce can be a daunting task, but it is a crucial step in achieving the desired outcomes for any business. In order to write a successful objective, it is vital to have a deep understanding of your target audience and their expectations from your company.

One way to gain insight into your audience’s needs and wants is by researching your competitors’ objectives. This allows you to target specific segments of the market and tailor your approach accordingly. Thoroughly examining their websites or conducting surveys with customers who have previously purchased similar products from other companies can provide valuable information.

After identifying your customers’ requirements, the next step is to provide solutions that fulfill those needs. It is important to not only focus on selling products but also on addressing customer problems. By researching your competitors and understanding their strengths and weaknesses, you can set relevant targets that align with your business objectives. This approach not only fosters customer loyalty but also leads to increased sales.

Conclusion

Objectives of E Commerce, or electronic commerce, is a rapidly evolving and expanding industry that has revolutionized the way people purchase goods all over the world. The landscape of ecommerce is constantly shifting as new trends emerge and shape consumer behavior. This has been largely driven by the success of ecommerce giants such as Alibaba, Amazon, Flipkart, and eBay, who have disrupted traditional retail models and forced major retailers to adapt their strategies.

However, one key catalyst for the recent upsurge in Objectives of E Commerce businesses is the global COVID-19 pandemic. The unprecedented disruption caused by the pandemic has not only unsettled daily life but also fundamentally changed the way we shop. While online shopping was not a novel concept before the pandemic, it has become an essential means of purchasing goods for many people during lockdowns and social distancing measures. This shift in consumer behavior has resulted in a 30% surge in ecommerce sales in 2020 alone, and its impact is expected to have long-lasting effects.