What is E-Commerce? A Brief Guide. 

Nowadays, it has become effortless to exchange money online. You don’t have to worry about having cash all the time. It has become a matter of swiping cards. Ever wondered about its back story? If yes, we are here to help you understand everything about E-commerce/electric commerce and give you a brief guide. 

What is E-commerce? 

E-commerce is the buying/selling of products or exchanging money through an electronic device, especially the internet. Even the transfer of data comes under the umbrella term of E-commerce. It is a vast field with many terms that need to be understood if you want a grip on the subject. 

Commonly Used Terms in E-Commerce:

Many terms are used in E-commerce, but we will explain the most important ones here. If you want to find out about them, keep reading. 


The merchants are authorized to know if the person they are selling to has enough funds in their credit cards to meet the transaction amount. Authorization is an essential step, as sellers should not trust buyers blindly and should make sure that  the person they are selling to is not scamming them. Merchants request the acquirers before doing this step. It is done through websites like PayPal etc. 

Authorized Reseller:

Companies don’t always sell their products directly to consumers. Sometimes a third party has permission and authority from the companies to sell their digital products. This third party can is called an authorized reseller or retailer. They can sell a bulk amount of products because they sign contracts with the manufacturers.  

Abandonment Rate

Not everyone who visits a website buys products from there. Some are just to have a look at what is available. The percentage of these users is known as the abandonment rate. I.e., a user who checked in on a website and added items to their shopping cart but never made the purchase would be considered in the abandonment rate. 

A/B Testing:

Websites have different pages, and a single page may have many variables. Understanding what pages or variables are more effective than the others is crucial. This is done through A/B testing. It is done for advertisements and promotional purposes. 

Artificial Intelligence:

Artificial intelligence has become a part of almost all fields. In e-commerce, it has a very vital role. Machines learn human behavior and portray them, making it easier for merchants to save money by hiring fewer people. Sometimes, they even outshine human performance and prove beneficial for businesses. 

Affiliate Marketing:

Another essential term in e-commerce is affiliate marketing. It is used to generate revenue for companies y promoting their products in online blogs and articles. Many purchases are made through this. Writers or influencers earn money through this product promotion, and the company gets more sales. So it is a win-win situation for both parties. 

One cannot explain the vastness of e-commerce in words. It is used in almost every aspect of life, so it is vital to grasp the topic thoroughly. Everyone, whether digital professionals or random buyers, should understand the terms we explained above. We hope you enjoyed learning the basics of e-commerce from us. 


Sign Up To Get Newsletter

Contact Us
Admin (Online)