If you want to launch a retail store in today’s increasingly digital world, consider becoming an ecommerce merchant.
With more than five billion internet users worldwide, there’s never been a better time for entrepreneurs to explore how they can sell products or services through their own ecommerce businesses. So many people and businesses buy online that global ecommerce sales are forecast to surpass $8 trillion by 2027.
Learn more about what ecommerce merchants do and what makes them different from other types of businesses.
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What is an ecommerce merchant?
An ecommerce merchant is a business that sells products or services to customers through the internet. Ecommerce merchants use platforms like Shopify to create ecommerce stores and make online transactions.
By offering goods and services online, ecommerce merchants can reach a wider customer base than traditional brick-and-mortar businesses, which are limited by their physical retail locations.
What makes ecommerce merchants unique?
There are some key features differentiating ecommerce merchants from other types of businesses. Here are a few of the unique aspects to ecommerce merchants.
Online payment processing
Online sellers need secure payment processing systems to ensure their customers can safely make payments online. Many online businesses choose a third-party payment service provider like PayPal or Stripe. Others opt for a dedicated ecommerce merchant account provider.
A merchant account is a specific type of business bank account that facilitates credit card transactions, debit card payments, and alternative payment methods like ACH payments or digital wallets, including Shop Pay or Apple Pay.
Lower barrier to entry
Without the initial setup and high overhead costs of a physical brick-and-mortar location, ecommerce merchants have the option to open businesses with minimal startup costs.
Small business owners selling their products or services online can launch a store through an ecommerce website like Shopify, making it easier than ever to handle tasks like inventory management without significant operating costs.
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Bigger market
Unlike brick-and-mortar stores limited by their physical location and size, online retailers can reach customers at any time and from any location with internet access.
Ecommerce merchants have the potential to accommodate more transaction volume from a wider range of customers, especially online businesses selling internationally.
Ecommerce merchant FAQ
What is ecommerce?
Ecommerce stands for electronic commerce and involves buying or selling goods and services online.
How do I become an ecommerce merchant?
To become an ecommerce merchant, develop a business plan as well as a valuable product or service that fills a need in the marketplace. Research your competition, develop a unique brand for your ecommerce business, and launch an online store through an ecommerce platform like Shopify.
Do I need a merchant account for ecommerce?
Although you can use a third-party payment processing service to accept ecommerce payments, setting up a dedicated merchant account provider allows you to process debit and credit card payments. It also allows you to process electronic payment types like digital wallets and bank transfers. Ecommerce platforms like Shopify make accepting payments online even easier through tools like Shopify Payments, a payment service that can automatically integrate with your Shopify store.