Trading has come a long way. From the time of barter trade to a cashless exchange, it is quite a journey. While metal coins have been used for trading for over 4,000 years and are still in play today, things are slowly drifting from conventional trade. Today, you sit behind your computer and order what you want from anywhere, and it will be at your doorstep in a few days. That is ecommerce in a nutshell. But as much as the idea is taking over trading, a lot of people do not know how ecommerce works.
How Ecommerce Works
Well, if you are one of those trying to understand ecommerce and how it works, this is the post for you. It will break down the process and share anything you would want to know. Does that sound interesting? Keep reading to learn more about how it works and the benefits of ecommerce.
Ecommerce’s Basic Elements
In traditional stores, you pick what you want, pay for it, and leave with the item. While online transactions use the same concept, there is one clear difference. In online shopping, you see a digital picture of the product, and you cannot touch it until it is delivered. This is one aspect that a lot of people find challenging when shopping online. The retailer also has a few challenges of confirming whether the products you order are in stock and if there is a way to deliver them.
Ecommerce is made of three components amongst the types of ecommerce. There is the web server tasked with managing the storefront and accepting orders. This is where the highest quality of photo format is crucial as you want to display the best images of your products. The database does stock-taking to check and update the availability of products. Finally, there is the dispatching system that is linked to the various warehouses where the goods are physically located, and delivery plans are finalized.
The Working of Ecommerce
- The chain of actions begins when a customer makes an order online. The convenience of ecommerce is a major benefit to consumers. The order prompt is sent to the web server charged with running the store.
- From the web server, the order proceeds to the order manager. It is a central computer that tracks all orders from the start until dispatch takes over.
- The order manager starts by checking whether each individual product is in stock. If anything is out of stock, the stock database can make real-time orders to the various manufacturers through the HQ. The availability update is given as the customer is still on the computer completing the order.
- If the product is in stock, communication goes to the merchant system that prompts the customer to check out and make a payment via the available options. The system checks if the customer’s account has adequate funds to cover the order. If everything checks out, the transaction is updated as complete.
- Now the order manager proceeds to send the order to the warehouse in readiness for dispatch. Delivery arrangements are made, and the order is delivered to the customer’s address. An email is sent from the warehouse to the customer confirming delivery is on the way.
- The customer receives the order.
Don’t know how ecommerce works? Ecommerce is a concept that allows you to not have to leave the comforts of your home to purchase something. Although with a few challenges, online shopping is going to underline the future of trade. If you have additional questions in regards to ecommerce, reach out to professionals who have helped businesses begin their business endeavors online.