E-Commerce

What is E-commerce?

E-commerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions. E-commerce is often used to refer to the sale of physical products online, but it can also describe any kind of commercial transaction that is facilitated through the internet.

Whereas e-business refers to all aspects of operating an online business, e-commerce refers specifically to the transaction of goods and services.

The history of e-commerce begins with the first ever online sale: on the August 11, 1994 a man sold a CD by the band Sting to his friend through his website Net Market, an American retail platform. This is the first example of a consumer purchasing a product from a business through the World Wide Web—or “e-commerce” as we commonly know it today.

Since then, e-commerce has evolved to make products easier to discover and purchase through online retailers and marketplaces.  Independent freelancers, small businesses, and large corporations have all benefited from e-commerce, which enables them to sell their goods and services at a scale that was not possible with traditional offline retail.

Types of E-commerce Models

There are four main types of e-commerce models that can describe almost every transaction that takes place between consumers and businesses.

1. Business to Consumer (B2C):

When a business sells a good or service to an individual consumer.

2. Business to Business (B2B):

When a business sells a good or service to another.

3. Consumer to Consumer (C2C):

When a consumer sells a good or service to another consumer.

4. Consumer to Business (C2B):

When a consumer sells their own products or services to a business or organization.

Examples of E commerce

E-commerce can take on a variety of forms involving different transactional relationships between businesses and consumers,

as well as different objects being exchanged as part of these transactions.

Example: Amazon, Flipkart, eBay, Fiverr, Upwork, Olx, Quikr..

Advantages of E-Commerce

• E-commerce provides the sellers with a global reach. They remove the barrier of place (geography). Now sellers and buyers can meet in the virtual world, without the hindrance of location.
• Electronic commerce will substantially lower the transaction cost. It eliminates many fixed costs of maintaining brick and mortar shops. This allows the companies to enjoy a much higher margin of profit.
• It provides quick delivery of goods with very little effort on part of the customer. Customer complaints are also addressed quickly. It also saves time, energy and effort for both the consumers and the company.
• The convenience it offers. A customer can shop 24×7. The website is functional at all times, it does not have working hours like a shop.
• Electronic commerce also allows the customer and the business to be in touch directly, without any intermediaries. This allows for quick communication and transactions. It also gives a valuable personal touch.