What is an e-commerce transaction?
As you know, e-Commerce transaction means any sale or purchase of products or services, manage by any network and that method is specifically designed for the goal of receiving or placing orders.
After ordering the products or services by those methods, the payment and the delivery of the items or services do not have to be always conducted online.
E-commerce transactions are more secure and valuable to customers rather than purchasing something from a shop. Sometimes retailers don't refund the money but in e-commerce transactions, almost every store owner gives you a money-back guarantee.
In e-commerce websites, transactions include different fees and expenses like Payment gateways, Returns and exchanges, Shipping, and e-commerce platforms.
Which are the most common e-commerce transactions?
In today's digital age, we have the convenience of conducting a wide range of transactions online. These transactions encompass online purchases of goods and services, paying bills online, managing our finances through online banking, and easily transferring money online, among other things.
E-commerce has completely transformed the way we do business, offering incredible convenience and accessibility to consumers all over the globe.
With the increasing use of mobile devices and the availability of secure payment gateways, e-commerce transactions have become extremely popular.
In konigles, We have some seller tools that directly connect with your shopee and shopify store to track every transaction and process. Also, advise you on how you will become more profitable after implementing some tactics.
E-commerce transaction example
E-commerce transactions are usually done through online platforms like websites or stores. An example of this is when you buy a product from an online retailer.
In this scenario, a customer visits an online store and takes a look at the different products available. Once they find what they want, they simply add it to their virtual shopping cart. When they're ready to complete their purchase, they head to the checkout process. During checkout, the customer can securely provide their payment information, like credit card details or digital wallet credentials, and easily complete the transaction. It's a quick and hassle-free process!
Once the transaction is successfully processed, the customer receives a confirmation email or notification, and the purchased item is shipped to their designated address.
This example demonstrates how e-commerce has revolutionized the way people buy products by offering convenience, a wide range of choices, and secure payment options.
What are the transaction models of e-commerce?
There are several things that you should be aware of before doing any online transactions.
1. Contact details of the customer:
If you see any wrong details filled in by the customer (For eg, the shipping address is different from the billing one) then you should send an email or call to verify that before doing any transactions with that customer.
2. Collect the card account information:
Getting current card information from the consumer is the main key for eCommerce transactions. you should know if this card information is correct (eg, MasterCard owner or visa card owner is current or not) or if any scammer trying to put a fake virtual card.
3. Verifications:
Always enable two-step verification with your customer for more secure transactions.
4. Authorize transaction:
All e-commerce transactions must receive authorization approval even if your customer is a repeat or old.
5. Delivery:
Always update your customer delivery dates and where the shipment is reached.
E-commerce transaction advantages and disadvantages
Advantages:
- Fast and secure
- Fast access
- You got an update in a few minutes
- Trust with the customer
- Low cost
- Flexibility of locations
- Error recovery
- Track each element of the process
Disadvantages:
- Sometimes compatibility problems
- Internet errors
- Overload problem
- Void transactions
- The setup cost is high (Buying licenses)
- Sometimes maybe fraud
Is online transaction and e-commerce same?
While there are some similarities between the two, it's important to acknowledge the subtle differences that distinguish them. Online transactions generally encompass any trade of goods or services that takes place over the Internet.
This can involve things like making a purchase on an e-commerce website, transferring funds through convenient online banking, or even paying for a super cool service like a streaming subscription.
On the other hand, e-commerce covers a wider concept, including the whole process of buying and selling amazing goods or fantastic services online.
It includes not only the transaction itself but also aspects such as online storefronts, inventory management, digital marketing, and customer support.
So while an online transaction can be a part of e-commerce, e-commerce as a whole covers a broader range of activities and considerations.