What is e-commerce in simple words

E-commerce - online trading, e-commerce, when all transactions, operations, business processes and communications take place online - on a website, in social networks or in an application. When people talk about e-commerce, they first of all mean online stores.

E-commerce simplifies the shopping path - to purchase a product, the user does not need to go to the store, but just open the site on a computer or smartphone and place an order.

In a broader sense, e-commerce brings together companies that conduct online transactions. Thus, e-commerce includes large online services, companies that deal with electronic funds transfers, automated information collection systems, and other business areas.

Why e-commerce has grownE-commerce is growing every year, and the pandemic has only pushed the development of the market. A new audience began to use e-commerce services - people over 55 years old. Offline stores began to close and go online.

globalwebindex researched the reasons why people buy products online. 53% of respondents highlighted free shipping, 41% - promotions and discounts, 35% - the opportunity to study reviews before buying, 30% - quick checkout.

China is the global market leader with $1.3 trillion in online sales in 2020. By 2025, they will grow to $2 trillion.

How to make a successful business in e-commerce - 4 examplesAmazonThe largest e-commerce store in the US and one of the leaders in the global online commerce. Amazon has a huge network of warehouses, its own delivery service with airplanes, drones and robots, as well as many business areas - Amazon Business for legal entities, cloud storage, streaming service.

AlibabaThe leader of the Chinese e-commerce market is included in the ratings of the most valuable companies in the world. Alibaba operates on three models - B2C, B2B and C2C. For the B2C segment, the company launched Aliexpress. Alibaba has its own Alipay payment system.

eBayInitially, it worked as an online auction - people exhibited goods, while others bid and bought. After that, the company switched to the classic C2C model with fixed prices. eBay decided not to develop its services, remaining an online aggregator and almost the only place where you can buy rare and collectible items.

WildberriesA major Russian player in the online retail market. On Wildberries you can buy clothes, shoes, appliances, electronics, cosmetics, toys. The company has many warehouses and couriers in Russia, has access to foreign markets - CIS countries and Western Europe.

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