How Ecommerce Works


With more and more people surfing the internet, more Perth web designers are borne every day.

Ecommerce revolutionized the way people transacted business. Business can now be transacted online while its business model is similar to the physical retail that has been used for centuries. Ecommerce does both successfully. In fact, it operates digitally and at the same time introduces unique business elements.

How Ecommerce works

You need to sell a product in exchange for a certain value. In the ecommerce era, you can reach an easy sale for new categories of goods. One good example to this is the selling of digital goods like e-books, music and software. Likewise, the boom of ecommerce enables transactions to be deployed much easier in a variety of goods like magazine subscriptions and air tickets.

A mechanism to accept orders

When the customer browses through your ecommerce website and has already decided on what to buy, he will be ushered to a process that will accept his order. The software that is used to carry out this process is termed as the shopping cart.

Aside from taking note on what the client will be purchasing and updating the database of orders, the shopping cart also does the several tasks:

  • computation of taxes and other charges
  • processing of coupons and other forms of discounts
  • capturing the billing process and the delivery address of the client
  • ensure that customer accepts terms of service and several other conditions of the transaction
  • creation of various codes like order number, invoice number and tracking number
  • presenting clients with options for delivering the purchased items and adding corresponding charges
  • forwarding clients to the payment system
  • in case of digital goods which are downloadable, customers who have paid are redirected to the download page

Payment mechanism

There are ecommerce websites that provides credit for goods purchased. This is especially true in business to business space. In most cases, a transaction in ecommerce will involve the exchange of money and goods. This process will be conducted by a software call the payment gateway. The payment gateway will present customers with different payment options.