E-commerce Definition, Examples, Types and Benefits
What is E-commerce? Definition, Examples, Types, and Benefits
It is essential to know about e-commerce; in this article we are going to discuss the basics of e-commerce that essential for every retailer. But before it, we will get the answer of that question:
What is e-commerce?
E-commerce (sometimes written also as the eCommerce) is called electronic commerce or internet commerce. It is buying or selling products on online services or on over the internet. It is also referred to as the transfer of money and data over the electronic network or the internet.
History of e-commerce, in 1994 the first transaction of e-commerce was made. Phil Brandenburg used his MasterCard to buy string’s ten summoner’s tales through the internet for 12.48 $. It enables internet purchases.
Examples of e-commerce:
Types of e-commerce models:
There are four 4 main types of e-commerce.
- Business to business (B2b)
- Business to consumer (B2C)
- Consumer to consumer (C2C)
- Consumer to business (C2B)
- Business to business (B2b): In the United States, 6.7 percent of b2b e-commerce volume increases year-over-year. Business to business (B2B) e-commerce model, in this type of e-commerce both parties are involved in the business. A business used to sell their goods and services to another business in this type one business provides goods and services with another, e.g. a business used to sells software as a service to another business for use.
- Business to consumer (B2C): Business to consumer (B2C), when a business sells products and services to an individual consumer, e.g. you buy some clothes from an online retailer.
- Consumer to consumer (C2C): Consumer to consumer (C2C) e-commerce, a consumer sells their goods and/ or services to another consumer, e.g. you sell your old things like your old furniture to another consumer on eBay.
- Consumer to business (C2B): Consumer to business (C2B), in this e-commerce type a consumer sells their own products and services to a business, an organization, or a company, e.g. the freelancer, the freelance platform, or a medium that connects to the remote workers and also the companies.
Benefits of e-commerce:
Lower financial cost: The lower startup cost is one of the best Benefits of e-commerce, for a physical retail store you have to pay many dollars to rent and also several costs such as buying inventory, store design, sales equipment, and others more.
Potential income: Another benefit of e-commerce is that an online store is open always for the business, unlike the physical location stores that are opened for a specific period of time like 9 a.m to 9 p.m.
Internationally sell: A brand can sell its products and services not just an area but all around the world easily. In Asia, the UK, or any other neighbouring countries, you have the ability to discover your audience. To selling the world widely your goods or services on the internet is a good feat it can help you to grow your brand a lot faster.
Affordable employees: The nest but not the least benefit of e-commerce is that to hiring affordable employees all around the world. You can also choose to outsource work to a virtual assistant at lower cost.