Online shopping
Introduction
Online shopping, also known as e-commerce, is a form of trade conducted over the internet. It allows consumers to directly buy goods or services from a seller over the internet using a web browser or a mobile app. This form of retail is often referred to as e-tail, with the 'e' standing for electronic and 'tail' representing retail.
History
The concept of online shopping was first introduced in the 1960s through an electronic data interchange (EDI) on value-added networks (VANs). The first secure retail transaction over the web was either by NetMarket or Internet Shopping Network in 1994. Today, online shopping is a common feature in life, with global e-commerce sales amounting to 4.2 trillion USD in 2020.
Business Models
There are several types of business models that online shopping platforms use. These include B2B, B2C, C2C, and C2B. Each model represents a different type of transaction that can occur on an online shopping platform.
Online Retailers
Online retailers, also known as e-tailers, are businesses that sell goods and services online. They can be either pure-play, meaning they operate solely online, or bricks-and-clicks, meaning they have both an online and offline presence. Some of the largest online retailers include Amazon, Alibaba, and eBay.
Customer Buying Behaviour
Customer buying behaviour in online shopping is influenced by a variety of factors. These include product information, delivery options, ease of navigation, and customer reviews. Understanding these factors can help online retailers to improve their service and increase sales.
Payment Systems
Payment for online shopping is typically made through digital payment systems. These include credit or debit cards, digital wallets, and online banking. Some online retailers also offer cash on delivery (COD) as a payment option.
Security
Security is a major concern in online shopping. Consumers need to be confident that their personal information and financial details are safe. Online retailers use a variety of security measures to protect customer information, including secure sockets layer (SSL) encryption and two-factor authentication.
Advantages and Disadvantages
Online shopping has both advantages and disadvantages. Advantages include convenience, wider product selection, and often lower prices. Disadvantages include lack of personal service, delivery issues, and the risk of fraud.
Future Trends
The future of online shopping is expected to be influenced by advancements in technology, changes in consumer behaviour, and the evolution of e-commerce regulations. Trends to watch include the growth of mobile commerce, the use of artificial intelligence in e-commerce, and the rise of social commerce.
