eCommerce Websites: The Complete Beginner’s Guide — SwiftERM

Basic Components of eCommerce Websites Mechanism

Following are some of the ways in which eCommerce websites usually operate:

  1. When a customer is looking for an online item to purchase, he or she is using a certain web browser. The very same browser is used to communicate with the web server of the online store. After this communiqué, an order can be placed.
  2. The order is placed via the communication of a web browser and a web server. This order then goes on to the next level where manager assesses the need of the client. A central computer is used to monitor the situation of the client order from very first phase of submission to the very last stage of delivery.
  3. Then, the administrator asks the database officer to check if there is actual availability of the required item.
  4. If the product is out of stock, the database can be used to order fresh supplies from the wholesalers in no time. In real time, the store’s system is used to communicate with the manufacture’s system about the expected supply times.
  5. The online store’s database is used to confirm to the customer about the likely time of accessibility of the item being ordered.
  6. If the item is considered to be available in stock then the manager goes on to process the order. Then, the customer’s payment is received via credit or debit card system using the commercial system.
  7. The business system could take some time in payment receiving because of necessary checks with the client’s bank system.
  8. The bank computer system has to verify whether the consumer has enough credit balance in his or her account or not.
  9. The online business mechanism gives a go-ahead to the transaction to take place after certain checks are verified. The funds are transferred at once, but take a few days time to completely go through.
  10. The order processing supervisor confirms the successful completion of the deal and informs the web server about it.
  11. Then, the web server displays the webpage to the customer to let him or her know about the conclusion of the agreement.
  12. The manager then informs the storehouse to dispatch the item to the purchaser with immediate effect.
  13. Third party delivery service is engaged to collect the product from the warehouse for delivery purpose.
  14. After the item is shipped from the store, the administrator then lets the consumer know about the initiation of his or her package.
  15. The final step is the successful delivery of the parcel to the concerned customer.

Pros of eCommerce Websites

  1. First of all, there is no need to open a physically located or brick and mortar kind of a business.
  2. An eCommerce website is open to an unlimited number of clients all over the town, country or even the entire world. In contrast, the physically located shop is only accessible to a few of the people who visit it.
  3. Profit margins of the online firm are unlimited; unlike the traditional store, the eCommerce warehouse is accessed by millions of people. Therefore, the probability of earnings from potential clients become in large number.
  4. These kinds of stores are open for customers 24 hours a day, 7 days a week, 30 days a month and 365 days a year. On the other hand, brick and mortar types of firms are only available for clients for specific time periods.
  5. Costs associated with maintaining an online webpage are far less than those of the physical store. They also do not have to pay any kind of rent; neither do they have to give employees their salaries.
  6. Anyone with a small amount of investment can open an online business. There is no need of a huge degree of capital for eCommerce websites. They are highly scalable; one can start off small and go big with the passage of time.
  7. Inventory costs like carrying costs are very less for these sorts of businesses. Unlike brick and mortar stores, they do not need to keep a pile of stock available with them all the time. Drop-ship can contact the manufacturer at any time and send the delivery right away right then and there.

Cons of eCommerce Websites

  1. Unlike physically present stores, online firms do not have the luxury to meet with their clients in person. Therefore, it is very hard for them to build, sustain and retain their customers as building long-term relationships with clients is the utmost priority. Therefore, a major drawback of these types of trades is that they have to rely on indirect relationships through email, via cell phone or live chat.
  2. Competition among the online businesses is fierce. For one product, there are more than 10 players in the market. Therefore, eCommerce websites owners will have to work a lot harder than the brick and mortar businesses to face off their competition.
  3. Being solely online, these kinds of businesses have to come across a large number of technical issues. If the server goes down, payments could be delayed, and a worse condition could be shutting down the webpage for some time. This could cause serious problems for the consumers as they will become agitated if they do not get a response on time. Hence, these technical faults can lead to loss of potential and even existing customers in the long run.

How eCommerce Websites Make Money

Charging Commission On Online Sales

Setting Subscription fees

Displaying Third Party Advertisements On Your Web Page

Providing The Facility Of Featured Listings

Serving As Affiliate Partners

Sending Emails To Clients

Entering In Strategic Partnerships

Why eCommerce Websites Mostly Fail

Using Poor Images And Product Descriptions

Not Adding Contact Information

Targeting The Wrong Audience

Not Engaging Your Customers

Offering Very Complicated Checkout

Incorporating Hidden Charges

We hope you enjoyed this article, intended to help improve our client’s profitability. It reflects the care SwiftERM offer. If you haven’t already done so, then please enjoy a FREE month’s trial and let us know what you think. Register

Basic Components of eCommerce Websites Mechanism

Following are some of the ways in which eCommerce websites usually operate:

  1. When a customer is looking for an online item to purchase, he or she is using a certain web browser. The very same browser is used to communicate with the web server of the online store. After this communiqué, an order can be placed.
  2. The order is placed via the communication of a web browser and a web server. This order then goes on to the next level where manager assesses the need of the client. A central computer is used to monitor the situation of the client order from very first phase of submission to the very last stage of delivery.
  3. Then, the administrator asks the database officer to check if there is actual availability of the required item.
  4. If the product is out of stock, the database can be used to order fresh supplies from the wholesalers in no time. In real time, the store’s system is used to communicate with the manufacture’s system about the expected supply times.
  5. The online store’s database is used to confirm to the customer about the likely time of accessibility of the item being ordered.
  6. If the item is considered to be available in stock then the manager goes on to process the order. Then, the customer’s payment is received via credit or debit card system using the commercial system.
  7. The business system could take some time in payment receiving because of necessary checks with the client’s bank system.
  8. The bank computer system has to verify whether the consumer has enough credit balance in his or her account or not.
  9. The online business mechanism gives a go-ahead to the transaction to take place after certain checks are verified. The funds are transferred at once, but take a few days time to completely go through.
  10. The order processing supervisor confirms the successful completion of the deal and informs the web server about it.
  11. Then, the web server displays the webpage to the customer to let him or her know about the conclusion of the agreement.
  12. The manager then informs the storehouse to dispatch the item to the purchaser with immediate effect.
  13. Third party delivery service is engaged to collect the product from the warehouse for delivery purpose.
  14. After the item is shipped from the store, the administrator then lets the consumer know about the initiation of his or her package.
  15. The final step is the successful delivery of the parcel to the concerned customer.

Pros of eCommerce Websites

  1. First of all, there is no need to open a physically located or brick and mortar kind of a business.
  2. An eCommerce website is open to an unlimited number of clients all over the town, country or even the entire world. In contrast, the physically located shop is only accessible to a few of the people who visit it.
  3. Profit margins of the online firm are unlimited; unlike the traditional store, the eCommerce warehouse is accessed by millions of people. Therefore, the probability of earnings from potential clients become in large number.
  4. These kinds of stores are open for customers 24 hours a day, 7 days a week, 30 days a month and 365 days a year. On the other hand, brick and mortar types of firms are only available for clients for specific time periods.
  5. Costs associated with maintaining an online webpage are far less than those of the physical store. They also do not have to pay any kind of rent; neither do they have to give employees their salaries.
  6. Anyone with a small amount of investment can open an online business. There is no need of a huge degree of capital for eCommerce websites. They are highly scalable; one can start off small and go big with the passage of time.
  7. Inventory costs like carrying costs are very less for these sorts of businesses. Unlike brick and mortar stores, they do not need to keep a pile of stock available with them all the time. Drop-ship can contact the manufacturer at any time and send the delivery right away right then and there.

Cons of eCommerce Websites

  1. Unlike physically present stores, online firms do not have the luxury to meet with their clients in person. Therefore, it is very hard for them to build, sustain and retain their customers as building long-term relationships with clients is the utmost priority. Therefore, a major drawback of these types of trades is that they have to rely on indirect relationships through email, via cell phone or live chat.
  2. Competition among the online businesses is fierce. For one product, there are more than 10 players in the market. Therefore, eCommerce websites owners will have to work a lot harder than the brick and mortar businesses to face off their competition.
  3. Being solely online, these kinds of businesses have to come across a large number of technical issues. If the server goes down, payments could be delayed, and a worse condition could be shutting down the webpage for some time. This could cause serious problems for the consumers as they will become agitated if they do not get a response on time. Hence, these technical faults can lead to loss of potential and even existing customers in the long run.

How eCommerce Websites Make Money

Charging Commission On Online Sales

Setting Subscription fees

Displaying Third Party Advertisements On Your Web Page

Providing The Facility Of Featured Listings

Serving As Affiliate Partners

Sending Emails To Clients

Entering In Strategic Partnerships

Why eCommerce Websites Mostly Fail

Using Poor Images And Product Descriptions

Not Adding Contact Information

Targeting The Wrong Audience

Not Engaging Your Customers

Offering Very Complicated Checkout

Incorporating Hidden Charges

We hope you enjoyed this article, intended to help improve our client’s profitability. It reflects the care SwiftERM offer. If you haven’t already done so, then please enjoy a FREE month’s trial and let us know what you think. Register

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