How E-commerce Works: Understand the Processes


Most companies nowadays are turning to e-commerce to raise awareness and online visibility for their products, and to boost their sales at the same time. This is one of the advantages that they get from modern technology. At the same time, it is also convenient and more advantageous for the consumers because they are spared of the hassles and difficulties of going out just to find the perfect product that they need or want to buy.

Because of this, companies have to step up their e-commerce strategies to attract and encourage more potential buyers to not only visit their website but also to buy from them. Learning the do’s and dont’s of e-commerce marketing is a significant help to increase the knowledge of marketers on how they could expand their market reach and contact their target market through the effective use of online marketing.

One of the basic but vital things to know about e-commerce is how it works and how it make you profit from it. Without knowing this, it is impossible to utilize the benefits and other possible advantages that it could provide your business.

For a quick rundown of how e-commerce works, here are some of the main points to remember:

  1. A possible customer searches online for the product or services that he is planning to purchase. He will be given various website options after he did an online search.
  2. When he clicks the link leading to your site, your web server will give and receive information over the Internet from the customer’s computer. If the customer made and confirmed a purchase, the customer would then provide his credit card information as the term of paying and sealing the deal.
  3. To make sure that the credit card information is protected, it is encrypted to avoid phishing or any other online scams.
  4. An online gateway allows a website to send credit card data to an authorized website or person to authorize or decline the credit card payment. The information will then be sent back to the e-commerce website of the seller to make the final processes before confirming the purchase of the customer.
  5. A merchant account makes the business accept credit card payments online so make sure to find one that is reliable and has been in the business for a long time to avoid any untoward incidents.
  6. After the payment is authorized and confirmed, the payment will be deposited to the company’s bank account within a few days.

If you are a client, keep in mind that doing transactions online, especially if it involves financial matters, is perilous so make sure that you purchase from a legitimate and known website. Check for any customer feedbacks and reviews before doing any transactions.

Visit Baker Distributing Company’s e-commerce site for a good example of trusted and legitimate website. They are one of the leading HVAC-R distributors in the country with branches in 22 states. You can also shop online for any HVAC-R equipment, supplies, and parts that you need from their website.