What’s an e-commerce site?

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E-commerce websites allow businesses to expand their customer base and sell products online. There are different types of e-commerce sites, from simple to complex, and they can save businesses money on staff and rent. Shopping cart vendors and hosted e-commerce solutions are available for small businesses, while larger companies can use dedicated servers and complete e-commerce solutions. The hosting company typically charges a large upfront payment and takes a percentage of the profits.

Most savvy entrepreneurs know that tapping into the Internet market typically opens the door to new markets and customers. They create business websites to promote their businesses and attract new customers. When a business actually sells its products or services online, the website is considered an e-commerce site. There are different types of ecommerce websites, depending on the size of the business, the budget of the business and the functionality of the website. The common denominator in all types of ecommerce websites is that the customer is able able to view potential products or services, choose one and order it online.

Ecommerce website template is an integral part of modern business plans. Most customers want the convenience of identifying and purchasing products in the privacy of their homes. Most major retailers have e-commerce websites to expand their customer base and tap into new markets. For example, customers who don’t live near the retail establishment can now purchase the company’s product. Some businesses don’t even have to have a retail storefront—they can do all of their business on an e-commerce website and can conduct operations remotely to save money on staff, rent, and utilities.

There are many types of ecommerce sites. Some are very cheap and simple, others are extremely expensive and complex. Many types of online merchants, such as online florists, bookstores, department stores, industrial products stores, and others, use ecommerce website software.

Some companies embed shopping cart vendors on their e-commerce website, which gives customers the ability to collect products and then buy them as a group. Internet services that provide shopping cart solutions for e-commerce websites typically benefit small businesses that want secure yet simple ordering and payment systems. The company is charged a payment processing fee, usually based on a percentage of the purchase price. Hosted ecommerce solutions are hosted by a web provider and provide various customization options for a high-volume online store. For example, these types of websites usually have large product catalogs, shopping carts, transaction management systems, and order management systems.

Ecommerce companies making more than $10 million US dollars annually often use dedicated servers and complete ecommerce solutions. These types of e-commerce websites can be customized to fit the company’s particular sales and product needs. The company hires an experienced external e-commerce company who typically design the site and host the dedicated server. The ecommerce host company usually provides marketing assistance; customer support, such as a call center; and fulfillment solutions. The hosting company, however, typically charges a large upfront payment and takes about 20 percent of the profits from the e-commerce site.




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