Ecommerce Website: Benefits, Working and Development Process

Jan 27 / 2025

The days without online shopping seem like ages ago. We have come a long way in two decades and ecommerce has started to rule the market. There are many businesses now that operate online and don’t have a physical store per se. This is the power of e-commerce websites in today’s world.

If you are a small business owner, then you might want to think about getting an e-commerce website. We are an e-commerce web development company in Chennai and we want you to know how these websites work before you invest in building one.

What Is an E-commerce Website?

E-commerce is the short form for electronic commerce. This is a vague term that is often used to define transactions made electronically with the help of the Internet.

E-commerce websites allow the user to buy and sell goods/services. The seller might or might not have a physical store. Customers can simply browse the products/services on the website, place orders, and pay for them electronically.

In today’s world, almost everything is available on e-commerce websites. You can get physical products or even services like e-books and online classes. After the advent of smartphones, e-commerce has reached new heights.

Will an E-commerce Website Work for My Business?

An e-commerce website can benefit all businesses. Even if you are a small business owner, you can boost your sales with the help of e-commerce websites. You can use the template-driven plug-and-play type of website if you are on a limited budget.

Some other benefits of having a well-designed e-commerce website:

• Increases market reach
• Encourages repeat customers thus aiding brand loyalty
• Provides ease of shopping to the customers thus increasing engagement
• Operates 24/7
• Provides data for future sales analysis

Basics of an E-commerce Website

There are three main components involved in the ecommerce system. There is a web server that helps manage the website and transactions made. Second, is the database system that keeps an account of the items in stock. Last is the dispatch system that will locate and send the buyer the product ordered.

A full-fledged e-commerce website has all these components but only the web server is a necessity. There are small business owners who create a website to showcase their products and receive orders. The database and dispatch system are managed by the small business owners themselves in more traditional ways.

Steps Involved in the Working of E-commerce Websites

• A customer gets to know about the website and navigates to it.
• The website connects to the database to show the content in the requested web pages.
• The customer browses through the products and finds one that he/she wants to order.
• The order is sent and with the help of the database, it is confirmed whether the item is in stock.
• If it is not in stock, orders are sent to manufacturers and the estimated delivery time is calculated.
• The order is confirmed and the estimated delivery date is sent to the buyer.
• The third-party payment gateway (merchant system) comes in to take payment using the customer’s credit or debit card number.
• The transaction is authorized and processed.
• The message of a successful transaction is notified to the web server.
• The customer receives a notification from the web server about the successful order placement.
• A request is sent to the dispatch system to collect the product from the warehouse and deliver it to the customer.

As a small business owner, you can build an online store with websites like PayPal and more. With this, the transaction part becomes easier and safer. You can also set up storefronts on eBay and other bigger e-commerce sites.

Also Read: How to Write a Product Description for eCommerce Websites

Developing an E-Commerce Website

Whether you own a start-up or are a company trying to extend your business online, e-commerce websites will make your business reach more customers and will get you more revenue. However, the website needs to be designed and developed perfectly for it to produce the desired results.

When it comes to a website, there are a lot of things to do but you need to prioritize your tasks. You need to break down things to achieve a hierarchy. The e-commerce website aims to make the customers purchase your product/service online.

A lot of things get involved in this process like making the business known to customers, building trust, marketing the product, and more. Here are some elements that when done to perfection will make this process simple.

No one wants to break their heads with a website that feels like a maze. Right from the start, focus on developing a website that is easy to navigate for the customers.

A website that feels effortless to move through will encourage visitors to spend more time on it. The customers are also more likely to check out various products which they proceed to buy. Hence, keep the following in mind: 

• Create categories and subcategories for your products.  
• Choose self-explanatory names for the categories and subcategories.  
• Always include a search bar since it makes the search for a specific product easier.  
• The search bar should be in the middle of the homepage or any easily visible place.  
• Add your best products to your main page naming them as featured, bestsellers, or popular.

By 2024, we are predicted to have about 187 million mobile shoppers. That is a huge number! Shopping through mobile is easy, practical, and more importantly, time-saving.

Your e-commerce website has more chances of reaching a customer through mobile than a laptop. Thus, before launching an e-commerce website, make sure that your website looks and works well on small screens.

If a customer intends to buy a product, he/she tends to inspect it fully in a retail outlet. There is no option for physically examining the product while purchasing it online and therefore it is necessary to satisfy the customer by giving the option of a visual inspection. This will make you look confident about your product.

• Post high-quality pictures.
• Add an option to zoom in on the product image.
• Add a 360° view of the product.
• Add videos of the working of the product, if needed.

These features would put the mind of the customer at ease about purchasing your product since they feel that they are making an informed decision.

Also Read:  E-Commerce Site Search – Best Practices to Increase Conversion (Part – 1)

Can you remember the last time you bought a product/service without checking the reviews for it? Rarely! With the abundant options we have now, there is no actual need to blindly purchase a product.

More than 90% of customers check customer reviews before they order a product. When you add customer reviews of the product to your website, you make the job easy for your potential customers. They now don’t have to visit another page or website to check the reviews.

Include options for the customers to add photos and videos about the product they have purchased from you. This will increase the credibility of your product.

Most people aren’t strong decision-makers when it comes to shopping. They tend to oscillate between different options and even change their minds at the last minute.

About 40% of people think that their shopping experience will improve if the e-commerce website has a wishlist. The wishlist helps people get the feel of window shopping. It helps save a product for future purchases and makes potential customers visit your website again. It would help if you send occasional notifications reminding the customer about the product in their wishlist. Do not badger but instead aim for a gentle reminder.

LBN Tech Solutions

There are 2.14 billion online shoppers worldwide and e-commerce retail sales are estimated to reach $7.4 trillion by 2025. These reasons should be enough for you to set up your e-commerce website. Visit our website here and we can discuss creating the best ecommerce site for your business.

Frequently Asked Questions

What is an e-commerce website?

An e-commerce website is an online platform that allows businesses to sell products or services over the internet, enabling customers to browse, order, and make payments digitally.

How does an e-commerce website work?

An e-commerce website connects customers with a product catalog, processes order, accepts payments, and manages shipping through an integrated system.

What are the benefits of having an e-commerce website?

An e-commerce website increases market reach, operates 24/7, enhances customer engagement, provides shopping convenience, and helps analyze sales data for business growth.

How can I develop an e-commerce website for my business?

You can develop an e-commerce website by choosing a platform, designing a user-friendly interface, ensuring mobile compatibility, integrating payment gateways, and setting up logistics.

How can customer reviews help an e-commerce website?

Customer reviews build trust, provide social proof, and influence purchasing decisions, helping improve credibility and boost sales.

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Sibyl Stendal

Lovely just what I was searching for.Thanks to the author for taking his clock time on this one.

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vorbelutrioperbir

Great post but I was wanting to know if you could write a litte more on this subject? I’d be very grateful if you could elaborate a little bit more. Appreciate it!

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Bryan Moore

The simplified process of how the ecommerce website works has been explained clearly.

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