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E-Commerce Definition – What Is E-Commerce?

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Electronic commerce (e-commerce) alludes to a plan of action that permits organisations and people to trade labour and products over the internet. Online business works in four significant market sections and can be led over cell phones, tablets, and other brilliant gadgets. This is the basic definition of e-commerce. 

E-commerce has an impact on how individuals shop and consume items and services. Essentially every possible product and service is accessible through internet business exchanges, including monetary, music, boarding passes, and books services like stock contributing and web-based banking. Thus, it is viewed as an extremely troublesome innovation. This article has all the essential information about e-commerce. 

Did you know?

Approximately 0.76% of India’s GDP was derived from e-commerce in 2017. The estimate for 2018 was 0.9%. Given that India is the second-largest online market in the world after China, the country’s rapid growth in the digital sphere, particularly following demonetisation in November 2016 and the market growth in mobile payments, creates growth opportunities for India in the years to come.

What is E-Commerce?

E-commerce is the method involved with trading certain items and services on the web. It includes more than one party alongside trading information or money to handle an exchange. Some of the more noteworthy industries are the electronic business (e-commerce business), which includes every one of the cycles expected to run an organisation on the web. 

E-commerce has significantly impacted how individuals shop and consume items and services. An ever-increasing number of individuals are going to their PCs and smart gadgets to arrange merchandise, which can undoubtedly be conveyed to their homes. Thus, it has disturbed the retail scene. Amazon and Alibaba have acquired considerable fame, constraining conventional retailers to cause changes to the way they carry on with work.

E-commerce is only one part of running an e-business. While the latter covers the entire online business process, e-commerce simply focuses on selling goods and services over the internet. E-commerce companies like Amazon, Alibaba, and eBay are changing how retail works, forcing large, traditional retailers to change how they trade.

If you consider launching an e-commerce site, make sure you do your research before beginning. And make sure you start with a small, narrow focus to ensure there is room for growth.

Also Read: What is the Difference Between Commerce and Business?

What is an E-Commerce Website? 

An e-commerce website is a web-based entrance that functions as a vehicle for trading labour and products through a significant channel over the web. In the last few days, web-based business was done through calls and messages.

Yet, presently, clients can trade everything on the web with a solitary site or stage.

Types of E-Commerce Models

E-commerce websites are classified into several groups-

B2B( Business to Business)

This stage is utilised to make electronic exchanges for labour and products between the two organisations. Assume A business offers SAS items to Business B.

B2C( Business to Consumer)

This stage is utilised to make electronic exchanges for labour and products among purchasers and organisations like Amazon or Flipkart. It is the most popular e-commerce model.

C2C( Consumer To Consumer)

This stage is utilised to make electronic exchanges for labour and products from purchaser A to Consumer B. For example, OLX Consumer A posts a promotion for selling a vehicle, and customer B purchases that.

 C2B( Consumer to Business)

This stage is utilised to make electronic exchanges of labour and products from customer to business. For example, Influencers with exposure, photographers, consultants, freelance writers, etc. are all part of C2B.

How to Start an E-Commerce Business? 

From retail behemoths like Amazon to small businesses like Etsy, the number of firms offering merchandise, services, and products online is growing each year. Web-based shopping is only one of the numerous areas that have seen overall development. E-commerce has become one of the fastest-growing trade routes available for cross-border trade in goods and services.

Steps to building an e-commerce business:  

1. Research About E-Commerce Space and Find Your Category

  • The initial stages of thinking about starting an online business play an important role. It’s also about setting up a restaurant and exploring different places, themes and dining options. You may need to research the internet business area you want and choose your particular e-commerce business.
  • These lines of questions etc. can be important when starting a business and can help you get started when creating and writing a business plan. This process will give you a better idea of your specific goals and how you will achieve them. Especially in e-commerce, finding your category is an important part of this step.

2. Choose Your Business’s Title and Logo

  • If you have already strengthened your e-commerce business plan, the next step is to choose a name. Like any business, you want to choose a unique name while reflecting what your business is or does. 
  • You can check the website of your local Secretary of State. Patent and Trademark Office to ensure that you do not choose a company name already owned by another company.
  •  Then choose a logo for your business. The type of business you choose has significant legal and financial implications for the operation of your e-commerce. Usually, you decide to create a real estate, public partnership, LLC or company.
  •  If you decide to start a property or a public company, you do not need to register in the state where you operate. However, your company may be legally affiliated under your name. If you want to operate under your chosen name, you must apply for a DBA or “do business” with the local government.

3. Get a Trade Permit and Licence

To start an e-commerce business in India, you must have these documents:

  • Business Registration: Sole Proprietorship, Partnership Firm, Private Limited Company, One Person Company, Limited Liability Partnership.
  • Goods and Service Tax.
  • Shop and Establishment Act.
  • Trademark Registration.

4. Select an E-Commerce Platform and Generate Your Website

  •  At this point, you have completed the paperwork required to register and legally launch your e-commerce website. Most of our steps so far reflected the process of starting a stone business. But now, instead of looking for a place and preparing to set up a stone shop, you will start building your website and online store.
  •  First, you need to think about your domain name, as we mentioned above. You want your domain name to match your business name (at least close). In this sense, perhaps your most important decision is to choose an e-commerce platform. Whether it’s all-in-one software like Shopify or an open-source platform like Magento, your e-commerce platform is the foundation you’ll use to build and grow your e-commerce business.

Also Read: Advantage disadvantage of online business

Importance of E-commerce in India

E-commerce is famous due to its many benefits. It is very convenient for us to shop anywhere, anytime and on any device without visiting the shops. Finding products online is easier and more efficient than in stores with product comparison features offered by most e-commerce portals.

Operating e-commerce requires much less capital investment compared to owning physical stores. There is no need to invest in sales staff recruitment, rental for top retail stores and unwanted overhead costs. The only responsibility in an online store is to promote your website and deliver quality products to customers on time.

E-commerce has become one of the fastest-growing trade routes available for cross-border trade in goods and services. It ensures a wider reach and acceptance on the world market with minimal investment. It allows resellers to sell to a global audience and customers to choose global.


In conclusion, we would like to mention that now we know almost everything about e-commerce. We have mentioned all the essential information about the topic. We have discussed the basic definition of e-commerce, how to build an e-commerce business, types of e-commerce models, and the importance of e-commerce platforms in India. 

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