What is e-commerce? Identifying the importance & 5 types of e-commerce.
What is e-commerce?
Electronic commerce (e-commerce) is the purchasing and selling of interests and services, or the communication of funds and information, mainly via electronic webs and networks. These business trades ensue either business-to-business (B2B), consumer-to-consumer (C2C), business-to-consumer (B2C) or direct-to-consumer (D2C). Often, the terms e-business and e-commerce are used interchangeably. The term e-tail is also occasionally used in association with the transactional functions that make up online retail shopping.
Over the last decade, the expansion of e-commerce outlets and platforms like Amazon and eBay has contributed to the substantial boost of online retail. In 2007, e-commerce made up 5.1% of exclusive retail deals, while in 2019, it accounted for 16.0%. E-commerce utilizes the Internet, letting customers access and browse online shops and order products and services via their gadgets or devices.
Every time an order is placed, the customer’s web browser communicates with the server hosting the online store’s website. Information connected to the order is dispatched to a central computer known as the Order Manager, which is then transmitted to a database that organizes inventory levels, a merchant system that possesses payment details (using applications like PayPal), and a bank’s computer before replacing the order manager. This guarantees that the store’s stock and customer accounts are adequate to process the order.
After the order is confirmed, the order supervisor reports the store’s web server, which shows a message notifying the customer that the order has been successfully processed. The order manager then dispatches the order data to the storage or fulfillment department to successfully send the product or assistance to the customer. At this point, actual and digital products may be dispatched to the customer or granted access to the service.
Platforms that host e-commerce dealings may include online marketplaces merchants sign up for, like Amazon Software as a service (SaaS) tool that permits customers to “rent” their online store infrastructure or an open-source tool for companies to handle in-house development.
What are the 5 types of e-commerce?
Business to Consumer (B2C):
B2C e-commerce is the most prevalent e-commerce benchmark. From business to the consumer signifies that the sale is between the business and the customer, like purchasing rugs from an online retailer. Business-to-consumer (B2C) e-commerce happens when a customer buys a product or service from a corporation over the Internet. Online shopping has advanced remarkably in recent years. Many companies have taken drastic security actions to safeguard their sensitive financial details. B2C e-commerce trades are not precisely tied to retail shopping. Many customers purchase car insurance, health insurance, and similar products online. One of the explanations why B2C e-commerce is so famous is that customers appreciate the comfort of buying products and services online.
B2B e-commerce directs to a company that markets goods or services to another company, such as a wholesaler, manufacturer, or retailer. Business-to-business e-commerce is not planned for customers and usually concerns raw materials, software, or integrated products. Manufacturers can also deal directly with retailers through B2Be Commerce. Business-to-business (B2B) e-commerce dealings transpire between two companies. B2B activity isn’t new, but the Internet has transformed all trading approaches. Examples of B2B are companies that outsource bookkeeping activities to other businesses or buy products from wholesalers. B2B transactions are usually processed in credit lines, and businesses constantly have long-term affinities with each other. The seller is accountable for specifying the creditworthiness of the buyer.
Direct to Consumer (D2C):
Direct to Consumer e-commerce is the most delinquent model of e-commerce, and fads within this variety are continually varying. D2C indicates that the brand deals straight to end consumers without retailers, distributors, or wholesalers. Subscriptions are a widespread D2C item, and social selling through platforms like Facebook, Instagram, Pinterest, Snapchat, etc., is a famous platform for marketing directly to consumers. It is also known as Government e-commerce, and it benefits both businesses and consumers. Intergovernmental transactions (G2B) contain government auctions, offers, recommendations for proposals, and license applications. Government-to-consumer or G2C transactions include documenting marriage certificates and delivering parking violation tickets. Critical advantages of government e-commerce assistance contain reduced latency and more immediate access to government services.
Between Consumers (C2C):
C2C e-commerce means directing many interests or services to another consumer. Consumer sales take place on platforms like Etsy, and eBay. Inter-consumer (C2C) e-commerce moves are current and usually demand a company to serve as an intermediate. Organizations like eBay and Amazon are making C2C more prevalent. This works by corporations documenting products for sale on third-party sites. Consumers thinking of purchasing a product visit the site to search for available products. When they buy the product, the seller is liable for delivering it. Businesses that serve as intermediates need transaction fees from the seller or the customer.
Consumer to Enterprise (C2B):
Consumer to Enterprise suggests that someone sells a service or good to a corporate community. C2B possesses influencers, freelance writers, photographers, consultants, etc., who deliver exposure. A consumer-to-company (C2B) trade transpires when a company performs online and bids on a project. For example, a consumer who needs a fresh website will publish work particulars on the bidding site along with their budget—companies with web design knowledge present bid proposals to clients. Consumers pick a company, submit the approved payment, and wait for the website to be supplied. The bidding company acts as a mediator to ensure that payments and assistance are provided.
What is the difference between e-commerce and e-business?
E-commerce refers to online commercial actions and transactions over the Internet. This possesses purchasing and marketing products and trading finances over the Internet. The Internet is utilized for e-commerce. E-commerce requires a website and an application (app). It is mostly linked to the definitive process of the flow device attached to the end customer. Examples of e-commerce include online retailers like Myntra, Amazon, Flipkart, Paytm malls, and digital products such as ebooks and online services. E-commerce activities include:
- Buying and selling goods online
- Online ticket
- Online pay
- Pay additional taxes
- Online accounting software
- Online consumer support
E-business guides to executing all kinds of business actions over the Internet. This includes raw material/item procurement, customer knowledge, product buying and selling supply actions, and monetary dealings over the Internet. The Internet, intranets, and extranets are used in e-business. E-business needs websites, apps, ERP, CRM, and more. E-business includes e-commerce businesses and different internal business activities, auction sites, employment sites, software, and hardware designer sites. E-commerce activities include:
- Online store format
- Customer instruction
- Buying and selling goods
- Economic transactions
- supply chain administration
- Email marketing
With the ever-increasing use of the Internet and growing popularity in all demographic features, e-commerce is a surefire way for nearly every business. Building an online site means that a business owner or company can reach likely clients to extend their business procedures and gain substantial market authority.
Without a trustworthy online presence, which is the soul of e-commerce, it is almost incomprehensible for businesses to contest in today’s highly competitive business world. By leveraging e-commerce for multifarious small companies to list services and products online, consumers can check and examine them or place an order with the click of a button on their computer.