What does e-commerce mean

What does e-commerce mean?


As e-commerce is called electronic commerce, which is part of the e-business. This generic term includes all forms of electronic use such as electronic commerce, advertising, buying and selling products and services on the Internet. E-commerce is one of the main business models, and online shopping is a classic example.


Essential characteristics of e-commerce are the electronic business processes between companies (B2B) and between companies and consumers (B2C). Customers can browse electronic product catalogs and place and pay for their order with just a few clicks. The aim of electronic trading is to optimize sales processes in order to increase sales. For this purpose, all work processes are to be made more efficient and costs are to be reduced. New sales channels are available to companies with online shops, marketplaces such as Amazon and auction platforms. In addition to customer acquisition With social media, digital advertisements and newsletters, companies can also maintain a large number of customer relationships with relatively little effort.

Advantages of e-commerce

According to deluxesurveillance, E-commerce has many advantages for both businesses and customers:

  • Global market: The Internet enables an independent sales location. In this way, online retailers can win new customers both nationally and internationally without having to open new locations. For consumers, e-commerce has the advantage that they can choose from a huge range and compare quality and prices directly.
  • Efficient buying process: e-commerce enables shopping without delay. Consumers no longer need to go to a local store to buy a product. You can order online around the clock from home or on the go. Service providers can also offer their services online. For example, a travel agency can advise customers online and make bookings.
  • Reduction of costs: Due to online trading, no new company and warehouse locations are necessary. Corresponding systems automatically monitor the inventory and cash flow, which facilitates the coordination of the different company areas and also enables new business models. Companies can also enter into partnerships with online service providers in order to benefit from the high reach of these marketplaces.
  • Long reach: Social media, corporate blogs and your own company website are inexpensive and effective measures to advertise your own offer. For example, companies can benefit from the high reach of Facebook if they are active there. In addition, search engine marketing and online advertisements can often be implemented more successfully and target-group-specifically with a smaller advertising budget than print advertisements or TV advertising.
  • Customer proximity: Companies can use social media to both establish more personal contact with potential customers and improve their image. By creating customer profiles, advertising measures can be better planned and the range can be adjusted according to demand.
  • Higher customer satisfaction: Thanks to e-mail support, online contact forms or chats, customers can submit their inquiries around the clock and receive an answer within a very short time.


  • Complex implementation: For companies, e-commerce means an investment in time and money.
  • Advertising expenditure: In addition to the large existing competition on the Internet, smartphones and social media have also shortened the attention span of users. This is why professional search engine marketing and more intensive support are required in order to successfully reach the relevant target group.
  • Lack of advice: Not every online retailer has the resources to offer 24-hour customer service or a chatbot. In particular for products and services that require a lot of explanation, e-commerce cannot replace personal on-site consultations.
  • Customization: A major challenge in e-commerce is customizing the shopping experience. Here personalized offers and advertising are becoming more and more important. Because nowadays customers not only expect offers, but also an individual approach and suitable purchase recommendations. By analyzing the buying and surfing behavior, the online shopping of each individual consumer can be better personalized. In this way, companies learn more about their customers’ product preferences and willingness to pay.
  • Mobile orientation: As online shopping is increasingly being done from mobile devices, websites have to be designed to be responsive. These have to be adapted to different output formats, which simplifies navigation via the small display of smartphones and tablets and shortens loading times.
  • Jump: In contrast to a conventional shop, the customer can suddenly stop shopping at any time and switch to a competing site. There are numerous reasons why customers abandon their online purchase. Thus, among other things, both complicated user guidance and long loading times lead to crashes.


More and more consumers are buying products on the Internet. Many companies have recognized this trend and are therefore increasingly relying on e-commerce. Online shopping offers customers a high level of convenience and speed. E-commerce opens up new possibilities for companies and reduces costs that arise from conventional sales channels. However, the high level of competition can mean that the online shop does not achieve the necessary reach and attention. Basically, however, e-commerce ensures that new customers are won with appropriate marketing measures and that the respective target group is better reached. This ultimately leads to more sales.

What does e-commerce mean