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E-commerce - Meaning & Definition

Published by MBA Skool Team in Information Technology & Systems Last Updated: April 14, 2024Read time:

What is E-commerce?

E commerce is basically a type of industry where buying and selling of a product or a service is conducted over the Internet. It is evolving as one of the major distribution channel for many companies, especially FMCG. Although it is still in its budding phase in India, the rate by which it has grown in last decade is huge. The number of households with internet connection has increased tremendously. Now-a-days almost everyone has an internet connection at their home which makes it much easier and convenient for them to do online shopping. Other reasons of success of e-commerce are:

  • The ease of shopping without physically going to a shopping store
  • The ease of comparing prices of different products
  • Availability of discounts on MRP due to cut-thought competition between online selling sites
  • Option of COD (Cash on Delivery), especially required for Indian consumer
  • Free delivery (above certain purchase value) and hassle free return policies
  • Increased confidence of people on such sites

Due to presence of a multitude of ecommerce sites, proper marketing is required for success. Following are the few ecommerce marketing strategies.

  • Sending Emails promoting and informing customers
  • Using social media like Facebook, Twitter to promote the site
  • Search Engine Optimization, through which popular search engines like Google search could easily find and display the site.

Hence, this concludes the definition of E-commerce along with its overview.

This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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