What is Ecommerce?

You may have heard of ecommerce; it‘s a term often tossed around in our daily lives. Do you know exactly what it is? Simply put, ecommerce is the abbreviated term for Electronic Commerce - the transaction or exchange of goods or services via a digital network.

In the past ten years, billions upon billions of dollars have been generated through ecommerce. Not bad for a relatively new phenomenon, right? While the revenue generated is impressive, even more impressive is the way ecommerce has changed the face of business for both the business owner and the consumer.

Ecommerce has become such a significant and powerful aspect of our lives. The United States Census Bureau, Department of Commerce, issues a quarterly report that paints a clear picture of how important it is. The statistics are staggering and clearly indicate how powerful a force ecommerce is in our changing economy.

Issued for public release in November 2007, the Q3 2007 ecommerce report was 34.7 billion dollars. Yes, billion. Are people buying more or simply buying less through traditional means? A study done by the USC Annenberg Center for the Digital Future suggests people now spend less of their dollars in brick and mortar establishments than ever before.

In fact, people spend 65% less in traditional stores since the ecommerce boom began. That isn’t to say shopping habits have completely changed. The gap is shrinking, though, and doing so at a rapid pace. The future of retail will rely heavily on the traditional retail front partnering with online ventures. As the saying goes, if you can’t beat them, join them.

What does all this mean for you, the ever important consumer? It may mean more than you think. Ecommerce has a growth rate of 25% per year. Growth in any area of business generates greater choice and availability of both goods and services.

It creates a healthy level of competition to keep prices low. It allows merchants to offer a wider range of transaction options and incentives. Most importantly, it gives the consumer more freedom on how to spend their hard-earned cash.

In decades past, one would head to the local bookstore for reading material. Most booksellers were more than happy to special order a book that was not available. Ecommerce has allowed us to order a book from any location in the world and have it delivered to our doorstep days later. The entire practice of ecommerce has certainly indulged our desire for instant gratification and undoubtedly made our lives easier. Who would have thought in just minutes one could pay their mortgage, download a CD, book a vacation, order groceries for home delivery and purchase a gift - with only a few clicks of the mouse?

It isn’t all about the consumer though. Ecommerce has changed the face of business full circle. Millions of entrepreneurs are jumping on board and making their ideas and wares available to the word for relatively small start-up fees.

New industries have sprouted, some out of necessity and some from sheer genius. The Aberdeen Research Group predicts the technology of BI (Business Intelligence) will be one of the most sought-after technological solutions for 2008. What is BI technology, you may ask? It gives the retailer real time information that allows a quick reaction to consumer demand on the Internet to help create customer retention and loyalty. Without ecommerce specialty, niche industries would never have existed. The domino effect filters down to the manufactures, sales people and marketers.

Ecommerce is here to stay. It’s no longer a novelty. The natural progression has been exciting to watch and participate in. To us it may spell convenience, to the world the possibilities have become endless.