How E-commerce Works

Earlier than we get into an entire dialogue of e-commerce, it’s useful to have a great psychological picture of plain outdated commerce first. When you perceive commerce, then e-commerce is a simple extension.

Merriam-Webster’s Collegiate Dictionary provides a couple of definitions of commerce:

Commercial


com.merce n [MF, fr. L commercium, fr. com- + merc-, merx merchandise] (1537)

1: social intercourse: interchange of concepts, opinions, or sentiments

2: the alternate or shopping for and promoting of commodities on a big scale involving transportation from place to position

3: sexual activity

We are usually within the second definition, however that third one is attention-grabbing and surprising — perhaps that is what the entire hype is about?

So commerce is, fairly merely, the alternate of products and companies, normally for cash. We see commerce throughout us in in hundreds of thousands of various kinds. If you purchase one thing at a grocery retailer you might be collaborating in commerce. In the identical manner, in the event you cart half of your possessions onto your entrance garden for a yard sale, you might be collaborating in commerce from a distinct angle. When you go to work every day for an organization that produces a product, that’s one more hyperlink within the chain of commerce. When you consider commerce in these alternative ways, you instinctively acknowledge a number of completely different roles:

  • Consumers – these are individuals with cash who wish to buy a great or service.
  • Sellers – these are the individuals who provide items and companies to consumers. Sellers are typically acknowledged in two completely different kinds: retailers who promote on to customers and wholesalers or distributors who promote to retailers and different companies.
  • Producers – these are the individuals who create the services that sellers provide to consumers. A producer is all the time, by necessity, a vendor as nicely. The producer sells the merchandise produced to wholesalers, retailers or on to the patron.

You possibly can see that at this excessive degree, commerce is a reasonably easy idea. Whether or not it’s one thing so simple as an individual making and promoting popcorn on a avenue nook or as advanced as a contractor delivering an area shuttle to NASA, all of commerce at its easiest degree depends on consumers, sellers and producers.


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