{"id":14662,"date":"2023-02-13T13:19:37","date_gmt":"2023-02-13T10:19:37","guid":{"rendered":"https:\/\/kodingtech.com\/?p=14662"},"modified":"2026-04-22T14:40:11","modified_gmt":"2026-04-22T12:40:11","slug":"what-does-e-commerce-mean","status":"publish","type":"post","link":"https:\/\/kodingtech.com\/en\/ce-inseamna-e-commerce\/","title":{"rendered":"What is e-commerce: everything you need to know"},"content":{"rendered":"

Given the extraordinary potential of the internet today, there has never been a better time in history to... <\/span>open an online business<\/span><\/a>. And because, however, the concept of e-Commerce is already quite old, we suggest you learn a little about it before you jump into this adventure. You will definitely make mistakes, but we believe that if you read the following lines you will be able to avoid at least some of them.\u00a0<\/span><\/p>\n

Okay, let's see what an eCommerce business entails!<\/span><\/p>\n

Article updated in 2026<\/em><\/strong><\/p>\n

What does eCommerce mean?<\/span><\/h2>\n

We will start at the beginning, more precisely with the term "eCommerce". The definition of eCommerce sounds something like this: electronic commerce, meaning any process of buying and selling products or services using electronic means, for example using mobile applications and the internet. And in relation to recent years, we can also add here the influence that AI has and will have in terms of online shopping.\u00a0<\/span><\/p>\n

In addition, by e-commerce we mean both online commerce and any form of electronic transaction. This term is used for any type of business or commercial transaction that involves the transfer of information using the internet. It is therefore not surprising that it represents one of the most important growth engines for the internet. It is expected that in the future traditional and e-commerce will merge, as more and more businesses seem to move their activity exclusively to the online environment (something that has already partially happened during the pandemic).\u00a0<\/span><\/p>\n

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The Beginnings of eCommerce<\/span><\/h2>\n

Before eCommerce platforms, there was simply a concept. It was first popularized in 1979 by Michael Aldrich, an English entrepreneur who connected a television to a computer. This system was basically the precursor to teleshopping.\u00a0<\/span><\/p>\n

Shortly thereafter, in 1982, the first eCommerce company was founded, called Boston Computer Exchange. This was basically an online marketplace where you could sell your used computer.\u00a0<\/span><\/p>\n

The first online marketplace was Book Stacks Unlimited in 1992, and three years later Amazon made history.\u00a0<\/span><\/p>\n

The first ever recorded transaction was made in 1994 by Phil Brandenberger. It was the first time encryption technology was used to facilitate an online transaction. In the mid-1990s, giants Amazon and Alibaba changed the face of the retail industry.\u00a0<\/span><\/p>\n

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Advantages and disadvantages of e-commerce<\/span><\/h2>\n

Photo source: <\/span>https:\/\/unsplash.com\/photos\/wcWN29NufMQ<\/span><\/p>\n

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Is it worth opening an eCommerce business in Romania? We'll leave it to you to draw a conclusion after we present you with the list of advantages and disadvantages.\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
eCommerce business advantages<\/span><\/td>\nDisadvantages of eCommerce business<\/span><\/td>\n<\/tr>\n
You have access to global markets<\/span><\/td>\nCustomer support can have certain limitations, especially if you don't implement it properly or don't have enough employees.<\/span><\/td>\n<\/tr>\n
Your business can run 24\/7 \u2013 now with the help of AI assistants<\/span><\/td>\nThe customer cannot test the product in the store, so the return rate will be slightly higher.<\/span><\/td>\n<\/tr>\n
Reduced costs compared to traditional stores<\/span><\/td>\nLong waiting time to receive the product<\/span><\/td>\n<\/tr>\n
You can automatically manage product inventory<\/span><\/td>\nPoor security of certain eCommerce sites<\/span><\/td>\n<\/tr>\n
With the help of information obtained from <\/span>databases <\/span><\/a>that you created from customer interactions, you can do precision marketing<\/span><\/td>\n<\/td>\n<\/tr>\n
You reduce costs because you sell directly to customers and you no longer need physical stores<\/span><\/td>\n<\/td>\n<\/tr>\n
You can test products, brands or services with minimal upfront investment<\/span><\/td>\n<\/td>\n<\/tr>\n
You can offer self-service options for customers, so you can keep a small sales staff.<\/span><\/td>\n<\/td>\n<\/tr>\n
You can scale your business quickly and with some low costs, especially if you benefit from <\/span>IT services<\/span><\/a> suitable<\/span><\/td>\n<\/td>\n<\/tr>\n
You can personalize interactions with customers and over time you can recommend products to their taste<\/span><\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

What do you think, is it worth the investment? We think so!<\/span><\/p>\n

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Types of merchants and types of eCommerce<\/span><\/h2>\n

Not all eCommerce businesses do the same thing or target the same audience. So, there are three main types of merchants:\u00a0<\/span><\/p>\n