E-commerce

Definition

E-commerce refers to the buying and selling of goods and services through electronic systems, primarily the internet. It encompasses a wide range of business activities, including online retail, digital marketplaces, and electronic payments, enabling consumers and businesses to conduct transactions without the need for physical storefronts. The rise of e-commerce has significantly transformed traditional business models and opened new avenues for revenue generation in various sectors.

5 Must Know Facts For Your Next Test

1. E-commerce has grown exponentially over the last two decades, with a significant portion of retail sales now occurring online.
2. The convenience of e-commerce allows consumers to shop 24/7 from anywhere with internet access, leading to an increase in impulse buying.
3. Businesses can benefit from lower overhead costs since e-commerce eliminates the need for physical retail space.
4. Data analytics plays a crucial role in e-commerce, enabling companies to personalize marketing strategies and enhance customer experience.
5. Mobile commerce, or m-commerce, is an emerging trend within e-commerce that focuses on transactions conducted via smartphones and tablets.

Review Questions

• How does e-commerce facilitate new revenue models for businesses in today's digital economy?
  • E-commerce enables businesses to implement innovative revenue models by providing access to a global market without geographical constraints. Online retail allows for direct-to-consumer sales, reducing reliance on traditional distribution channels. Additionally, e-commerce supports subscription models and dropshipping, which can lower initial investment costs while diversifying revenue streams. This flexibility encourages businesses to experiment with different approaches to attract and retain customers.
• In what ways have online news platforms adapted their revenue models in response to the growth of e-commerce?
  • Online news platforms have adapted their revenue models by integrating e-commerce strategies into their content offerings. Many sites now utilize affiliate marketing, promoting products or services alongside articles while earning commissions on sales generated through their links. Subscription models have also become prevalent, allowing readers to pay for premium content while fostering reader loyalty. These adaptations are crucial as they help news organizations navigate declining advertising revenues while still delivering quality journalism.
• Evaluate the impact of e-commerce on consumer behavior and how it influences content creation in digital journalism.
  • E-commerce has significantly altered consumer behavior by prioritizing convenience and immediacy, leading audiences to expect quick access to information and products. This shift influences digital journalism as content creators increasingly focus on integrating shopping opportunities within their articles or videos. For example, product reviews and shopping guides have become popular formats that seamlessly blend news with commerce. As consumer preferences evolve towards personalized experiences, journalists must adapt their storytelling to include interactive elements that cater to these demands while maintaining informative integrity.

Related terms

Digital Marketplace: An online platform that connects buyers and sellers, allowing them to transact goods and services, often featuring a wide variety of products from multiple vendors.

Subscription Model: A business model where customers pay a recurring fee at regular intervals for access to a product or service, commonly used in software, media, and e-commerce sectors.

Dropshipping: A retail fulfillment method where a store doesn't keep the products it sells in stock, instead transferring customer orders and shipment details to a third party for fulfillment.