How is eCommerce used? uses of eCommerce

Electronic commerce or as usually called eCommerce is something that everyone from nowadays has at least heard of. Simply put it is doing business online. You basically supply goods and services to people through an online platform. It is one of the few industries surrounding us that have become rather a very big part of our lives without us even noticing. Netflix, Uber, Amazon, Airbnb, and Instagram are some of the many e-commerce that we use daily. Its integration in our life has been nothing less than magic. To elaborate, no one from our grandparent’s generation could have even thought that we would be able to buy stuff this way. And believe me, it would have sounded just like magic in those days for this stuff to become a reality.

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How is eCommerce used? uses of eCommerce

E-commerce really has given a lot of people the comfort of doing business from their homes and more importantly, make passive streams of income Not only are these making our lives more convenient but have also given rise to a great deal of opportunities. It is one of the most flourishing industries which did a total sales of $3.5 trillion in the last year. Moreover, as technology becomes more advanced and as people become more aware, this industry is only going to grow even further. Now, that we have established what eCommerce is and its immense potential, lets dive into answering the question ” How is eCommerce used?”

Uses of eCommerce

1. Business

The most important and prominent use of eCommerce as we all know is buying products and services online. It is a platform that allows you to stream through products you like 24/7, 365 days a week. It also reduces the struggle of actual transportation to get our stuff as it sometimes just becomes inconvenient. Businesses like Amazon, Uber, and Amazon not only raise the overall standard of living but also give provide employment. For instance, Amazon has more than 750,000 employees. Businesses like these also help the overall economy of the country they operate in as well as the overall world economy.

2. Technological advancements.

As we have already seen through businesses like uber, amazon, and Airbnb that these businesses are also great jumps when it comes to the technological side of the matter. People are trying to innovate and make more technologically advanced businesses as apparently those are the types of businesses booming as of now. Ecommerce has also given rise to developments in inventory management systems, and automated data collection systems.

3. Promotes new businesses

E-commerce has the power to literally everyone to become an entrepreneur. Which is a great thing and as it allows people to make money doing what they love. Lets elaborate. For instance, you are a stay at home who just loves to make homemade jewelry. You make a website post a few articles about how you go through with what you do and put whatever you make for sale anyone who actually likes it. And there you go, you are entrepreneurs sitting at your home. This isn’t just the case with jewelry, it is literally the case with everything as you can start doing this part-time, whenever you get the free time unless you are ready to fully commit.

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How is eCommerce used?

Moreover, eCommerce has helped many people to actually leave the jobs that they hated and were stuck in. To do something that actually does keep them on edge and makes them happy. I have heard countless stories where a person begins to start a website as a part-time hobby to see how it goes. And when he/she sees actual results, they leave their jobs in an instant and fully commit. As the potential in commerce is more than just immense. You can literally make millions promoting other people’s products/services. But, spoiler alert, it isn’t as easy as it sounds. But it’s not like anything worthwhile in life easy to achieve so that’s to be expected.

4. Equals the ground

Big businesses in the eCommerce space don’t have as much of a headstart as they do in the real world. And small businesses can also hope of competing with them in the online space. As the online space is not that capital intensive as the real world. Which takes care of the biggest barrier to small businesses to achieve the state they want. The online space being less capital intensive helps in a lot of ways. It helps people to focus more on customer service and actually innovate and make products that matter.

5. Environmental benefits

As you might have already figured out, commerce really helps in decreasing the overall population. As many stores are shifting their whole businesses online. All of the pollutions that might have been caused becomes more limited. Which helps form a better externality to the environment. eCommerce also reduces the overall costs for the businesses in a huge way and reduced business infrastructure obviously means less waste4

6. Helps her passive streams of income

what is a passive stream of income you ask?

Well, let’s learn that through an example Say you had a rough night, you went to sleep early, woke up, opened up your laptop, and there, you earned yourself $30000 while asleep. Isn’t that just a dream come true. Well, this is called passive earning. So, basically earning money whilst you are not doing anything to actually earn money from that specific platform at the moment. Simply put, this means earning money from a source without ever having to cater to it day and night. You can go and try a million other things while still earning a table amount of money from a certain source.

Moreover, E-commerce and the online market place has given us some of the best ways to set up passive income streams. And literally anyone can benefit from them. Ecommerce within itself brings along many business models like dropshipping and affiliate marketing which are also great ways of passive income if done right. But none of these in any way start bearing fruit in the early stage. In fact, like everything else good in life you do have to put in the hard work. But, nonetheless, they do have their conveniences like working from home and very little capital investment.

An increase in sales of an already developed business

7. eCommerce makes business more customer-oriented

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How is eCommerce used? uses of eCommerce

As eCommerce grows, it becomes more and more important for businesses to give people what they want. So, they keep a lookout for customer’s habits to know what kind of stuff they should be making and promoting. Moreover, eCommerce is also forcing people to become more and more sincere in their policies. Because if they are not sincere and provide good value, those businesses will lose some good long term business. But, despite all this, there are a lot of scammers out there that go their business and ruin the overall image of eCommerce.

8. Raises awareness

E-commerce has allowed a great deal of small businesses to become known and popular. Which ultimately leads to familiarity with people and a higher interaction by the potential customers. Moreover, how would a client/customer get to you if they don’t even know that you exist. The eCommerce platform also helps establish trust as people will know more about you through your commerce platform. You can also take reviews from your customers online, take their suggestions and, and make improvements. Moreover, you can interact with your customer base on a more personal level knowing what they would like and offer them special offers and coupons to promote your brand or follow through with any related action

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How is eCommerce used? uses of eCommerce


This also gives the business a great way to promote new products and services that they are hoping of introducing. Which can lead to a great launch of the product/service as people will be aware that you are introducing something new. This is also what’s called digital marketing. Which, without a doubt has become the most effective way of marketing nowadays. Simply put, digital marketing refers to promoting your product/service/brand using various platforms. The platforms could be PPC advertising, online marketing, SEO, or anything that makes your product known. IF you want to know more about digital marketing, we have an article written on that “Why is digital marketing important? 2020” which explains what digital marketing is and why it’s so important.

9. Advertisement

Ecommerce has given rise to a great deal of awareness about digital marketing. Which, simply put it refers to promoting products and services online. It has some great level of potential and is one of the most effective ways of marketing in today’s world. Ecommerce also uses social media platforms like Instagram and youtube to promote a product.

eCommerce allows people to explore markets around the whole world. And target whatever niche that they want to. Moreover, new audience also gives a bigger perspective to businesses that themselves get limited to a certain location for their whole lives. Ecommerce helps raise awareness for your business and makes it familiar. You can also use different marketing tactics like offering people a 20% chance on their next purchase if they right a review. Or offer them coupons that they can use. Moreover, you can also arrange online events and put some of your products as your prize. Which can also prove to be a great way of promoting your products. Moreover, businesses can also use models like affiliate marketing to promote products even further.

10. Convenience

This is by far the biggest reason for the recent popularity of eCommerce. It’s just so convenient. You can shop 24/7, 365 days a week any time you want. You can go through what you like at 1 A.M in the morning and add whatever you like in your cart. And book it for a delivery whenever you feel like it. This is one of the many things of eCommerce that makes eCommerce more convenient than the usual shopping experience. Which is another reason for its increasing popularity. Moreover, many times people just don’t feel like going out but are forced to because they have to buy something. But, eCommerce deals with that problem once it for all.

Not only this, but it is way easier to compare different brands, their sites, products online as there is a lot of information and reviews that you can conveniently go through. Not only this, but there are also sites like Rakuten that let you earn money whilst you shop. Rakuten gives up to 40 % cash back at over 2500 stores

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How is eCommerce used? uses of eCommerce

Ecommerce also gives businesses to target literally any market of the world they want as long as they have a good delivery system. Ecommerce has completely changed the game as you can book literally anything from any part of the world that you like. Which was nearly a dream a few decades back.

11. Low costs

As businesses don’t have to incur many of the costs like traveling costs, maintenance costs and hire fewer employees. stores have started offering special offers at lower prices. Businesses online are also now focusing more on providing more value as they know the amount of impact positive reviews and good worth of mouth can have on the online market place. Ecommerce businesses are also quite an environment friendly when compared to our conventional retail stores.

Ecommerce’s future

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How is eCommerce used? uses of eCommerce

Ecommerce is without a doubt growing at an overwhelmingly flourishing speed. It is estimated that by the end of 2040, 95% of purchases will be made online. But this does not mean the end of traditional retail stores as we know it. As that too comes with its shares of pros. If you want to know more in-depth what eCommerce has for the future, Shopify has a great article on that “What Is the Future of Ecommerce? 10 Insights on the Evolution of an Industry”. So do check it out if you are interested.

To conclude there are many businesses that are closing their retail stores to shift their business completely online. This is due to the fact that, if done right, eCommerce won’t only mean more revenue but also lesser costs as well as lesser complications when it comes to things like taxation and some other technical stuff. Hopefully, this article was helpful and dealt with most of your related queries around the uses of eCommerce. If you have any further questions feel free to use the comment section below. And stay tuned to ecomscoop for more interesting articles about eCommerce.