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How does E-Commerce Business Work

zara corner - 25th May 2021 - 0 comments

Are you a person who is planning to start a rapidly growing business? Would enjoy if your brand is the most sought for brand, all over the world? If so, ‘brick and mortar’ is just too old fashioned! E-commerce business is the latest trend.

What Is E-Commerce Business

If you are thinking about launching a website or wanting to make money through the internet, starting an E-Commerce business will be the ideal choice. E-Commerce or electronic commerce lets you buy or sell things via the internet. Through this, we can trade and exchange money on the internet.

E-Commerce is all about combining three essential systems:

  • A webserver to manage the online storefront,( i. e., the product pages) and handle transactions.
  • A database system that keeps track of the products in stock, it keeps changing as orders are placed. It also contacts the suppliers when the stock runs low.
  • A dispatch system – it is linked to a warehouse, where the stocked goods are available. So this the system locates the product there and sends it to the buyer as quickly as possible.

What Can You Do In E-Commerce?

A traditional process of shopping requires you to go directly to a brick and mortar store, Search for the required product, examine the product, check the price, pay for it and leave with a bill. You can do exactly all this in e-commerce, but from the comfort of your home. You just have to open the website, search for the required product or service, examine it, compare the price at various sites, place the order and wait for the product to be delivered at your doorstep with a bill.

“Don’t expect to see a change if you don’t make one “

E-Commerce Website | Cfactory

Therefore, if you are an entrepreneur, having a small business you can increase your customer base in e-commerce.

You can buy or sell every product you think of via these online shops. Things you trade for include any product or services like books, music, plane or train tickets, and financial services such as online banking.E-Commerce websites can be optimised for desktops/laptops, tablets, and smartphones to reach a more significant number of audience. There are four traditional e-commerce business models, such as business to business (b2b), business to consumer (b2c), consumer to business (c2b), and consumer to consumer (c2c). You can use any of this e-commerce business models to sell online.

You can also do many things through e-commerce. Here are a few:-

  • Online retail

The product to sell is displayed on an e-commerce website. When ordered, it is directly delivered to the consumer without any intermediary involvement.

  • Wholesale

When ordered in bulk, the products are delivered either directly to the consumer or a merchant or distributor.

  • Online travel, ticketing.

You can book air, rail or bus tickets via e-commerce sites. Movie and event tickets can also, be bought online.

  • Online deals

A few deals can also be purchased via online shops, and those can be redeemed either online or offline.

  • Online portal classified

This includes car, job, property and matrimonial portals.

  • Dropshipping

In this type of online business, physical products are sold on an e-commerce store, but the delivery is taken care of by a third party, who manages inventory, order fulfilment and other logistics.

  • Crowdfunding

This type of e-commerce is useful to startup capital, leverage buying power and reduce product costs. Therefore, consumers pool their money on an anticipated product, even before the product is released in the market.

  • Subscriptions

Either physical or digital products can be subscribed on an e-commerce store. This enables the consumer to keep getting the service without any interruptions. This recurring purchase can be cancelled or altered whenever the consumer changes their mind.

  • Digital products

In e-commerce purchase of both tangible items, and digital products are done.

E-Commerce-Business | Cfactory

How Does E-Commerce Business work?

There are six necessary steps to explain how e-commerce business works:-

  1. You have to have a website of your own.
  2. But the website has to have a purchase capability. That is known as a shopping cart.
  3. SSL Certificate. -Secure Socket Layer. If you are launching an e-commerce website, you have to have financial data encrypted, as your consumers will be entering confidential information, like, credit/debit card details and personal information.
  4. A payment gateway. These are ‘merchant services’, which have the authority to pull or take funds from a credit/ debit card and give it to you.
  5. But before it comes to you, it has to go into a merchant account, which is provided by the merchandise service.
  6. Finally, you need your business account, and then get it linked to your merchant account. The funds from your consumer’s credit card will be transferred to your merchant account, and then it will automatically be deposited in your account after a couple of days.

Prospects Of E-Commerce


It is essential between the seller and the consumer, regarding the order information, available products, user payment and sometimes also about product ideas. The conversation happens either through telephone lines or computer networks.

Business Process

All the processes in e-commerce are automated on the platform. It just takes a few clicks. Everything under the hood is just a code or program and not real humans.

 Services offered by the platform

Service in eCommerce denotes how quickly and comfortably consumer requests are handled. Requests may either be regarding a problem they had with the product they’ve already bought or a query regarding a product or service they are planning to buy.


As discussed in this article, the e-commerce business works very efficiently and smoothly. And it is effortless to flourish in this business mode and gain many customers. It is also easy to establish your brand globally through email marketing, social media, advertisements and other options.

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