Online shopping in the context of "Dot-com bubble"

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⭐ Core Definition: Online shopping

Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the retailer directly or by searching among alternative vendors using a shopping search engine, which displays the same product's availability and pricing at different e-retailers. As of 2020, customers can shop online using a range of different computers and devices, including desktop computers, laptops, tablet computers and smartphones.

Online stores that evoke the physical analogy of buying products or services at a regular "brick-and-mortar" retailer or shopping center follow a process called business-to-consumer (B2C) online shopping. When an online store is set up to enable businesses to buy from another business, the process is instead called business-to-business (B2B) online shopping. A typical online store enables the customer to browse the firm's range of products and services, view photos or images of the products, along with information about the product specifications, features and prices. Unlike physical stores which may close at night, online shopping portals are always available to customers.

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Online shopping in the context of Internet

The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a network of networks that comprises private, public, academic, business, and government networks of local to global scope, linked by electronic, wireless, and optical networking technologies. The Internet carries a vast range of information services and resources, such as the interlinked hypertext documents and applications of the World Wide Web (WWW), electronic mail, internet telephony, streaming media and file sharing.

Most traditional communication media, including telephone, radio, television, paper mail, newspapers, and print publishing, have been transformed by the Internet, giving rise to new media such as email, online music, digital newspapers, news aggregators, and audio and video streaming websites. The Internet has enabled and accelerated new forms of personal interaction through instant messaging, Internet forums, and social networking services. Online shopping has also grown to occupy a significant market across industries, enabling firms to extend brick and mortar presences to serve larger markets. Business-to-business and financial services on the Internet affect supply chains across entire industries.

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Online shopping in the context of Retail

Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is the sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and then sells in smaller quantities to consumers for a profit. Retailers are the final link in the supply chain from producers to consumers.

Retail markets and shops have a long history, dating back to antiquity. Some of the earliest retailers were itinerant peddlers. Over the centuries, retail shops were transformed from little more than "rude booths" to the sophisticated shopping malls of the modern era. In the digital age, an increasing number of retailers are seeking to reach broader markets by selling through multiple channels, including both bricks and mortar and online retailing. Digital technologies are also affecting the way that consumers pay for goods and services. Retailing support services may also include the provision of credit, delivery services, advisory services, stylist services and a range of other supporting services. Retail workers are the employees of such stores.

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Online shopping in the context of Brick and mortar

Brick and mortar (more commonly Bricks and mortar in British English, sometimes B&M in American English) is an organization or business with a physical presence in a building or other structure. The term brick-and-mortar business is often used to refer to a company that possesses or leases retail shops, factory production facilities, or warehouses for its operations. More specifically, in the jargon of e-commerce businesses in the 2000s, brick-and-mortar businesses have a physical presence (e.g., a retail shop in a building) and offer face-to-face customer experiences.

This term is usually used to contrast with a transitory business or an Internet-only presence, such as fully online shops, which have no physical presence for shoppers to visit, talk with staff in person, touch and handle products, or buy from the firm in person. However, such online businesses normally have non-public physical facilities from which they either run business operations (e.g., the company headquarters and back office facilities), and/or warehouses for storing and distributing products.

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Online shopping in the context of European Union energy label

EU Directive 92/75/EC (1992) established an energy consumption labelling scheme. The directive was implemented by several other directives thus most white goods, light bulb packaging and cars must have an EU Energy Label clearly displayed when offered for sale or rent. The energy efficiency of the appliance is rated in terms of a set of energy efficiency classes from A to G on the label, A being the most energy efficient, G the least efficient. The labels also give other useful information to the customer as they choose between various models. The information should also be given in catalogues and included by internet retailers on their websites.

In an attempt to keep up with advances in energy efficiency, A+, A++, and A+++ grades were later introduced for various products; since 2010, a new type of label exists that makes use of pictograms rather than words, to allow manufacturers to use a single label for products sold in different countries.

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Online shopping in the context of Personalized

Personalization (broadly known as customization) consists of tailoring a service or product to accommodate specific individuals. It is sometimes tied to groups or segments of individuals. Personalization involves collecting data on individuals, including web browsing history, web cookies, and location. Various organizations use personalization (along with the opposite mechanism of popularization) to improve customer satisfaction, digital sales conversion, marketing results, branding, and improved website metrics as well as for advertising. Personalization acts as a key element in social media and recommender systems. Personalization influences every sector of society — be it work, leisure, or citizenship.

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Online shopping in the context of Mail-order catalog

Mail order is the buying of goods or services by mail delivery. The buyer places an order for the desired products with the merchant through some remote methods such as:

  • Sending an order form in the mail
  • Placing an order by telephone call
  • Placing an order with a travelling agent
  • Filling in an order form on a website or mobile app — if the product information is also mainly obtained online rather than via a paper catalogue or via television, this mail-order model is called online shopping or e-commerce

Then, the products are delivered to the customer. The products are usually delivered directly to an address supplied by the customer, such as a home address, but occasionally the orders are delivered to a nearby retail location for the customer to pick up. Some merchants also allow the goods to be shipped directly to a third party consumer, which is an effective way to send a gift to an out-of-town recipient. Some merchants deliver the goods directly to the customer through their travelling agents. Payment may be made by installment.

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