How Does Ecommerce Work? A Simple Guide to Setting Up Your Ecommerce Business


The United States online retailer’s year-over-year sales grew by up to 68% in the period ending April 2020. This consistency in growth follows the overwhelming online demand for goods during the current Coronavirus pandemic. Nevertheless, even in past years, the global e-commerce market has witnessed a steady increase as more customers swam online stores for orders.

4.57 billion. This is the total current number of active internet users. This staggering figure confirms the reason the e-commerce sector is thriving.

Have you been wondering, “How does eCommerce work?” With the emergence of cheaper internet connections and the onset of smartphones, online retailers are now finding it easier to sell through the internet.  Starting an eCommerce business is no longer rocket science.

Read this eCommerce guide for tips on how eCommerce works.  

How Does Ecommerce Work?

Ecommerce refers to the sale and purchase of products and services over the internet. The customer completes money transfer through electronic mediums and then awaits shipment of the order in the shortest time possible. This process involves more than just the ordering and payment of goods.

The potential customer first searches online for the products on offer and their prices on the retailers' website or landing page. Once they are satisfied that the product or service meets their preference, they add the good or service to their virtual shopping cart. The client then checks out and completes the transaction by making the necessary payments.

Ecommerce companies then either provide direct shipping options or work with third-party companies to cater for shipping.  However, in between the point of order request and the final delivery, there's the process of tracking. While eCommerce reduces the intricacies of the brick and mortar model, you must get your logistics right to thrive in the sector.  

Here’s your eCommerce business guide on everything you need to get right before launching.

Research  the Ecommerce Space

Research is everything as you prepare to launch into the eCommerce space. Information in the modern era is easily accessible, which is a perfect place to kick start this journey. Like in the brick and mortar business model where you need to research the location, products, and services, the eCommerce space is not different.

It would be best if you considered what exactly your business wants to offer. It would be best if you also considered whether your products are physical or digital. These two questions will form part of your decision on the kind of space you want to get into.

Finding a niche in the eCommerce business is essential. You don't want to end up with a business line that’s too common. Adequate research can help you decide on a unique path that will keep you in business and guarantee your profits.

Once you settle on your eCommerce niche, it would help to research the competition.  Who are the key players in the sector? What are the legal complexities that exist? This information will help you make more informed decisions.

Apart from the fact you are conducting your business online, most other requirements are constant. It would be best if you considered a name and the legal status you will adopt. Consider a unique name, given that it will be your brand name.

Ensure that your domain name is unique only to your business. Further, ensure that you define your legal business status, whether it's a partnership, LLC, or a corporation. These different statuses may have underlying implications on your operations in the future, which means you need to get the right legal advice on the best options.

Understand Search Engine Optimization

Now that you’re ready to begin your eCommerce journey, it's essential to consider the techniques that will keep you afloat. Search Engine Optimization (SEO) can help you navigate the intricate online market. Ensure that you understand how dynamics around keywords, websites, and lead conversion intertwine.

If you aren't tech-savvy, you need to consider the services of an expert. This will help ensure that you optimize your website to suit your potential client’s needs.  You must also ensure that your website ranks top on Google to guarantee you traffic.

Building Your Virtual Store

Your landing page is your one-stop-shop for visiting customers. You need to ensure that once your SEO techniques lead your potential clients, they find what they need sooner. You might have a lot to consider to ensure that you have a high-converting product page.

Factors such as ease of usability and site loading speeds will matter. Most online users want a fast and responsive site.  It would help if you optimized your product pages so that your leads won't struggle to find the information.

Determine Your Sale Funnel

You’re a new business hoping to attract customers for long-term growth. As such, you need to pitch for clients in spaces they already frequent. Once you create a front-end offer and a landing page, you'll be ready to head all out.

Remember to create person-to-person connections with the people you look forward to reaching out to as a business. This will help make the process of emailing and tracking orders easy.

Automate Your shipping

The most crucial part of eCommerce is ensuring that it reaches the intended destination. Shipping can be a real nightmare without the right tools. It would help if you started by automating your shipment process.

Optimizing your shipment process ensures that your last-mile delivery is flawless and efficient. You also get real-time order information from drop shippers and other third-party contractors. This approach ensures seamless integration and helps you avoid the tedious process of manual data entry and follow-ups.  

Online Markets Are the Future of Businesses

Most people wonder if starting an eCommerce business is worth the hassle. Given the growing number of online users and the steady growth in consumer confidence in eCommerce, there could never be a better time to dive in.

Are you wondering, "How does eCommerce work?”

This eCommerce business guide underscores the need to do adequate research on the most suitable products or services, optimize your websites, and to automate your shipping processes. With well-structured sales funnel and top of the range SEO strategy, you'll be good to go.  

At Ship theory, we take care of your shipping optimization so that your clients can enjoy a flawless process.  You don’t need a contract to enjoy our simple and transparent pricing.

Are you stuck at how to ensure flawless shipping for your eCommerce business? Visit our page for a quick fix.