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What is Ecommerce Management?

By Tess C. Taylor
Updated May 16, 2024
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In today’s global economy, electronic commerce — or ecommerce as it’s more commonly known — is the practice of conducting business on the Internet or via electronic computer-enabled systems that are networked. In order to compete on a worldwide scale, many companies promote and sell their products and services by using an ecommerce model on websites and through the efforts of online marketing and social media. Ecommerce management refers to how this process is handled in accordance to best business practices and international laws.

The amount of international trade that is managed online continues to grow as more consumers turn to the Internet as a source of information. In addition, consumers enjoy convenient access to products and services that may not be available through traditional means or from local resources and retailers. Being able to manage the overall process of maintaining an ecommerce business is the responsibility of skilled ecommerce management professionals. In many cases the entire ecommerce system is handled by an in-house team of skilled information technology and sales professionals or it may outsource to an ecommerce vendor.

Many private and nonprofit organizations as well as private membership associations also use some form of ecommerce management to promote and support their mission. Individuals that wish to participate in the goals of each organization are then able to gather information and make financial contributions directly from the ecommerce website or computer-aided system provided online. This convenient method of obtaining information and processing financial activities is handled by special ecommerce managers familiar with this type of activity.

Government agencies and public utilities also often have ecommerce management systems to share information and create access to resources needed by citizens. For ecommerce management to best succeed in a government, utility or other public agency environment, all sensitive information exchanged must be carefully obtained and kept secure at all times by the ecommerce team. Activities such as registering vehicles, changing mailing address, paying for utility invoices or applying for assistance programs are made easier by using the ecommerce model.

Another important ecommerce management practice takes place in business-to-business transactions. This occurs when companies that do regular business need to safely transfer confidential information or make financial transactions from one company to another. Each business must have some form of an ecommerce system available in order for this to occur, because it requires the management of secure information, resources and monies. In many cases, businesses rely on an outside ecommerce provider such as a banking institution or a contracted vendor that has a secure network with which to make the exchange efficiently.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
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