How Does an Ecommerce Website Work?

Nov 11 / 2022

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

What Is an Ecommerce Website?

Ecommerce 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.

Ecommerce 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 ecommerce websites. You can get physical products or even services like e-books and online classes. After the advent of smartphones, ecommerce has reached new heights.

Will an Ecommerce Website Work for My Business?

An ecommerce 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 Ecommerce 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.

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

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 Ecommerce 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 which 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 ecommerce sites.

Also Read: What is the Role of SEO in the Web Design/Development Process?

LBN Tech Solutions

There are 2.14 billion online shoppers worldwide and ecommerce 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.