How Ecommerce Works

Popular Right Now
3 min readDec 30, 2019

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As technology is advancing, more and more people are inclining towards internet. It is no longer limited to accessing the social media accounts. People use it for paying bills, transferring money and also for shopping. Gone are those days when people used to shop only from a physical store. The ecommerce industry has changed it all. Now, people buy anything and everything online. You too probably have bought a lot of things online. But do you know how ecommerce works?

How Ecommerce Works

How Ecommerce Works — The Basics You Need to Know

You must have chosen a product, added them to cart and complete the payment procedure to buy the product online. But there is a huge network that works behind this easy to shop process which is what gives consumers all of the benefits of ecommerce. We will discuss about how this entire ecommerce system work.

Basic Components of an Ecommerce System

When you are buying things online, you have to keep in mind that there are many things that are working behind this system. There are some basic components that you have to know about. There are three main elements of the ecommerce system — web server system, database system and dispatch system.

The web server system helps in making appropriate link to the servers so that the payment and other processes go smoothly. A database system helps in keeping a check on the items that the store has in stock. The next one is the dispatch system which will be linked to the warehouse where you can keep your goods and it will be located instantly. Then the particular thing ordered by the customer will be delivered to the buyer.

How the System Works?

  1. First, the customer has to order something online. This is where the advantages of high quality PNG and other photo files come into play as they will be the representation of your product. The web browser will communicate with the internet serve back and forth.
  2. The web server will then send the order to the order manager. The central computer will see the orders through every stage of the product processing starting from the submission to the dispatch.
  3. The order manager will then check the database to find out what the customer actually wants is in stock or not.
  4. If the item is out of stock, then the database system can order for more new supplies from the wholesaler or the manufacturers to stock up the products.
  5. The stock database will then confirm whether or not the item is in stock and it will also suggest an estimated date when the product will be delivered.
  6. Then in the payment page, the customer has to put in payment details where the merchant’s bank server is connected with yours for the payment transaction.

Bottom Line

So, this is how ecommerce works and it is a long process which takes about a minute or two to complete. You may think that ecommerce industry is easy and fast working but there is a lot of work going on behind the screen. All these components must work to ensure that you enjoy a smooth, hassle-free and efficient transaction. These components must work equally great to effectively place your order on the particular online shopping site. Once any server fails to work, your transaction will fail too.

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