E-Commerce Funding: A Guide | E-Commerce Funding | How to raise funds for an e-commerce startup ?

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Why do e-commerce companies need funding?
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Growth is a common reason for e-commerce companies to obtain funding.

Advertising, new hires and product launches — all these need money.

Whether you run a small e-commerce company or an established one, business growth often comes hand in hand with fundraising needs.

If growth and expansion are items on your company’s roadmap, then funding is something you need to learn about.
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Crowdfunding
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As its name suggests, crowdfunding is the practice of raising funds from the crowds.

Typically, a project or venture is funded by gathering small amounts of money from a large number of individuals.

Crowdfunding campaigns can be divided into four categories:

Donation-based: Individuals make donations to your project purely as a token of support. They will not receive rewards of any kind.
Rewards-based: Contributions are made to your campaign in exchange for non-monetary rewards (e.g. the finished product).
Debt-based: Instead of offering non-monetary gifts, you will repay contributors with money plus interests.
Equity-based: You can also choose to give away shares in your company in return for funding.

To create a crowdfunding campaign, you first need to map out the title, goal, description and other details of your project.

You can then post your campaign on crowdfunding platforms (such as Kickstarter, GoFundMe and Indiegogo), where members of the online community could invest in your project.

Generally, money will be collected from individual contributors only if a crowdfunding campaign reaches its fundraising target. If not, then no money will be taken from your supporters.
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E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. E-commerce is in turn driven by the technological advances of the semiconductor industry, and is the largest sector of the electronics industry.
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