Table of Contents Hide
- What Are E-Commerce Services?
- Types Of E-Commerce Services
- Types of E-commerce Revenue Models
- Best E-Commerce Services Companies
- B2B E-Commerce Services
- Types of B2B E-Commerce Services
- E-Commerce Services Providers
- What Are the E-Commerce Services?
- What Are the 4 Types of E-Commerce Services?
- What Are the 8 Categories of E-Commerce Services?
- What Are the Main Activities of E-Commerce Services?
- Final Thoughts
- Related Articles
When businesses and consumers conduct transactions online, they are engaging in electronic commerce (e-commerce). E-commerce services are a business model that has expanded into numerous industries and may be performed on a wide variety of devices. Almost anything you can think of can be purchased online now, from books and music to plane tickets and banking services, to stock trading and investment. It’s a highly innovative technology because of this. B2B e-commerce services are a type of e-commerce service. This article gives a clearer explanation of the best e-commerce services companies and e-commerce services providers.
What Are E-Commerce Services?
E-commerce is a method of conducting business over the internet. Regardless of what device a customer is using, they may log into an online store to peruse available goods and services and place an order. An overview of what an e-commerce service provider does is provided here. Client browsers exchange information with the marketplace server via HTTP requests and responses after an order has been placed. In addition, the order details will be transmitted to a centralized system known as the order manager.
After this is completed, the data is sent to the databases used to track stock. Some examples of such intermediaries include the bank’s computer and the merchant’s system, which manage the payment operation and then reroute the customer back to the order manager. In other words, this guarantees that the store has enough inventory to meet demand and that there are sufficient finances from the consumer to fulfill the order.
Furthermore, after the order has been validated, the order manager will notify the store’s web server. Once the order has been processed successfully, a notification is sent to the customer. The manager of client orders will then forward that data to whoever is responsible for delivering the ordered products or services to the customer. Delivery of digital or physical items to the customer, or provision of service, may occur at this point.
Types Of E-Commerce Services
These are the types of e-commerce services;
#1. Business to Consumer (B2C)
Businesses that deal in business-to-consumer e-commerce don’t sell to retailers, but rather to consumers. A business that deals directly with the end user, as opposed to an intermediary, is known as a “business-to-consumer” (B2C) enterprise. Product sales (like that of your neighborhood sporting goods store online) and service sales (like those of a freelance writer) are both viable applications of this business model (i.e. a lawncare mobile app to reserve landscaping services). The majority of people probably associate e-commerce services with this business model because it is the most prevalent one.
#2. Business to Business (B2B)
To offer products online to a consumer is quite similar to business-to-consumer models. That user, however, may not be an individual consumer but rather a competing business. Larger orders, stricter requirements, and extended lead times are common features of B2B transactions. If the purchase is for repeatable production operations, the company placing the order could also need to set recurring items.
#3. Business to Government (B2G)
Several businesses focus on serving government administrations or agencies as contractors by supplying goods or services. To an extent, this arrangement resembles that of a business-to-business transaction in that the company creates something of value and then pays that value over to another party. Businesses that sell goods and services to the government must frequently submit proposals in response to government RFPs, solicit bids for projects, and provide goods that fit very precise standards. Moreover, there can be cooperative government initiatives to use a government-wide purchase contract to request a single contract.
#4. Consumer to Consumer (C2C)
Only legitimate businesses can make a profit in the retail trade. Digital marketplaces, an example of an e-commerce platform, connect customers with other customers who can list their own products and carry out their own sales. These C2C platforms might include auction-style listings (like eBay auctions) or call for more conversation about the good or service being offered (i.e. Craigslist postings). Technology-enabled C2C e-commerce platforms allow customers to buy and sell directly from one another without the involvement of businesses.
#5. Consumer to Business (C2B)
Consumers can now more readily interact with businesses and provide their services, in particular for freelancing contracts, and other short-term work options made possible by today’s platforms. Think about the listings on Upwork, for instance. Customers can communicate with businesses looking for certain workers or request quotes from them. By bridging the gap between businesses and independent contractors, the e-commerce platform gives shoppers more leverage when it comes to negotiating prices, setting appointment times, and finding suitable work.
#6. Consumer to Government (C2G)
Via C2G collaborations, customers can engage with bureaucracies and governments in a way that is less like to typical e-commerce. Most of the time, the exchange of services is not the focus of these kinds of partnerships; rather, it is the buying and selling of obligations. One example of an e-commerce transaction including the exchange of information is filing federal income taxes via the IRS’s digital website. You can also send your county assessor your property tax payments or pay your university’s tuition online.
Types of E-commerce Revenue Models
A company has to figure out how it will make money in addition to deciding what kind of online retailer it will be. Owing to the distinctive features of e-commerce services, the company has a few alternatives for how it wants to handle orders, maintain inventory, and dispatching goods.
#1. Drop Shipping
Drop shipping enables a business to set up an online shop, earn sales, and then rely on a supplier to deliver the product. It is sometimes regarded as one of the simpler types of e-commerce. Once a sale is made, the e-commerce platform accepts payment by several digital currency options such as credit card, PayPal, cryptocurrency, and more. After that, the online shop notifies the drop shipper that an order has been placed. The supplier handles stock control, warehouse management, product packaging, and shipping.
#2. White Labeling
White-label e-commerce businesses make use of products that have already been sold and are profitable by another business. After a consumer puts in an order, the online retailer receives the previously purchased item, repackages it with their own packaging and label, and ships it to the customer. Despite having little to no control over the products they buy, e-commerce companies typically have little to no manufacturing limitations.
Wholesale is a more capital-intensive method of e-commerce because it requires retaining large quantities of inventory, tracking client orders, keeping track of customer shipping details, and, often, owning the warehouse space to house things. Wholesalers may set different rates for different customers, including retailers who buy in bulk and individual consumers who buy a single item. The general strategy for wholesaling, however, is to establish connections with customers who are willing to buy a similar, standardized product in large numbers or numerous smaller customers.
#4. Private Labeling
For online retailers who lack the resources to invest heavily in product development or maintain their own manufacturing facilities, private labeling is a viable alternative. Online retailers who use private labels outsource production to third-party manufacturers by sending the design specifications. It’s possible that the manufacturer can send the goods straight to the buyer, or at least to the company that placed the order. Businesses that can’t handle the necessary capital expenditures but may occasionally receive on-demand orders with short turnaround times are most suited for this type of e-commerce.
Subscription services are a great way for online retailers to capitalize on repeat purchases and loyal customers. The e-commerce firm would put together a bundle, roll out brand-new offerings, and promote signing a longer contract at a reduced monthly rate for a set fee. The customer only needs to place one order and will consistently receive their subscription orders after that. Meal-preparation services, agricultural boxes, fashion boxes, and health and grooming items are all examples of popular subscription e-commerce products.
Best E-Commerce Services Companies
These are the Best E-Commerce Services Companies that you need to know for your need;
Amazon is a multinational technology firm based in the United States that operates primarily in the field of electronic commerce but also in cloud computing, digital streaming services, and artificial intelligence. It is one of the largest e-commerce companies in the world and is often grouped with Google, Apple, Meta, and Microsoft to form the “Big Five” American technological corporations. Jeff Bezos established the business in 1994 in Bellevue, Washington, first as an online bookstore. Since then, it has grown to offer a vast assortment of goods, giving it the nickname “The Everything Store.”
60% of Amazon sales are made by third parties, and in addition to making its own products available for purchase, Amazon also serves as a platform for other companies to sell their goods.
The headquarters of the US-based, international e-commerce company eBay is in San Jose, California. One of the few notable survivors of the dot-com bubble—a stock market catastrophe brought on by extreme over-speculation of internet enterprises in the late 1990s—eBay, founded by Pierre Omidyar in 1995 as an online auction site, is one of the few businesses that has managed to thrive. Today, eBay is a multibillion-dollar e-commerce company that supports both traditional priced-as-is sales and best-offer transactions between consumers. Buyers don’t have to pay anything to access the site, but merchants must pay to post their wares. About 109 million people visit the website on average each month.
Shopify is a multinational Canadian e-commerce business with headquarters in Ottawa, Ontario. It provides a unique digital commerce platform that enables small businesses to participate in online sales and sell their goods through point-of-sale systems and online storefronts. In an endeavor to launch their own online store for a manufacturer of winter sports equipment called Snowdevil, Tobias Lütke and Scott Lake launched it in 2006 after becoming dissatisfied with the e-commerce goods that were on at the time on the market.
The online store for Snowdevil was created by Lütke, a computer programmer, using an open-source web application framework. Later, in 2010, Shopify released a mobile app to expand this foundation to additional retailers. Since then, the business has made a name for itself as one of Canada’s fastest-growing e-commerce businesses and a world authority on e-commerce logistics. It provides proprietors of small businesses with an excellent e-commerce digital storefront infrastructure, a back end that is skillfully designed and organized, and seamless interaction with their own logistical operations.
An American e-commerce site called Etsy specializes in selling handmade and vintage goods such as jewelry, apparel, home goods, furniture, craft materials, and tools. By providing small business owners with individual, online storefronts where they can list their products for costs of $0.20 per item, the website carries on the tradition of actual craft fairs.
Craigslist is a US classified ad website offering sections for employment, housing, goods for sale, gig services, discussion forums, and more. It is comparable to the classified ads found in the back of newspapers. The firm was founded in 1995 as an email Listserv for friends that focused on events in the San Francisco Bay Area by the list’s founder, Craig Newmark. In 1996, the Listserv evolved into a website, which later added additional advertising and sales categories. Metropolitan areas in 70 different nations are currently covered.
A US global technology business with headquarters in Menlo Park, California is called Meta Platforms; it was formerly known as Facebook. Being the parent firm of WhatsApp, Instagram, and Facebook may be the company’s claim to fame. It also runs Instagram’s e-commerce feature, which enables users to click through Instagram posts to buy featured products, as well as Facebook Marketplace, which works similarly to Craigslist in terms of enabling consumer-to-consumer sales and gig services.
The American retail giant Walmart is known not only for its ubiquitous brick-and-mortar locations but also for its extensive online marketplace. The company has been well-known in the United States since the 1960s as the leading discount megastore, and it has since grown to become one of the largest retailers in the world. Its stores can be found in every one of the 50 states in the United States, and it also has a sizable online and offline footprint in Canada and Mexico. By turning its physical stores into virtual warehouses stocked with products ordered online, Walmart has built a successful e-commerce business model on top of its extensive brick-and-mortar presence. Items are shipped directly to customers’ homes from local stores rather than from a central distribution center located hundreds or thousands of miles away.
A Chinese global technology business called Alibaba Group Holding Ltd provides e-commerce, internet services, and technological development services. The Hangzhou-based firm was established in 1999 and offers product search engines in addition to C2C, B2C, and B2B sales services. One of the largest online marketplaces in China, it is often compared to Amazon because of the breadth of its product selection. Nonetheless, it surpasses the competition by providing a vast selection of wholesale goods for resale to both people and corporations.
B2B E-Commerce Services
When two companies deal directly with one another to exchange goods and services, this is known as “business to business” (or “B2B” for short). When compared to B2C, where companies sell directly to customers, B2B has a very different business strategy. Therefore, if a manufacturer sells directly to a wholesaler or a wholesaler sells directly to a retailer, this is considered business-to-business e-commerce. One of the formats of the most rapidly expanding sales is B2B e-commerce services. According to some estimates, the worldwide B2B e-commerce sector is worth more than $12 trillion and accounts for 13% of all B2B sales in the US.
The shift has been fueled in part by innovation and technology from B2B e-commerce platforms. Traditional methods of doing business in the B2B sector entailed a lot of manual labor-intensive procedures like marketing and sales. With the advent of digital commerce, these companies may save money and boost productivity by automating their e-commerce processes.
Types of B2B E-Commerce Services
Business-to-business-to-consumer, or B2B2C, sales are made directly to the customer without the need for a middleman. Products are made by either wholesalers or manufacturers. B2B companies buy these products and resell them to end users. Here are the types of B2B e-commerce services:
A B2B2C company frequently features a digital storefront exhibiting its product catalog in an e-commerce environment. It’s possible, but not guaranteed, that the customer has no idea the product wasn’t made by the company itself.
It is common practice for corporations to purchase commodities in large quantities from wholesalers or manufacturers and then resell them to retailers, who in turn sell to consumers at retail. Buyer-focused B2B marketplaces are an effective approach for wholesale suppliers to promote their goods to consumers and retailers while spending less on marketing. When there are more buyers than sellers in a market, it is considered a buyer-oriented market.
In order to sell their products to other suppliers, wholesalers, or manufacturers, manufacturers generate vast quantities of items. Manufacturers now need to adapt to the increasingly digital demands of consumers. Flexibility in the purchasing of manufactured goods is something that is being sought after by wholesalers, suppliers, other B2B companies, and consumers alike. In order to stay competitive, businesses increasingly want manufacturers to provide online transactions with access to customized features like pricing, manufacturing schedule, or sizing.
A manufacturer may not want to handle packaging, shipping, and marketing internally; instead, distributors handle these tasks. Distributors can work with manufacturers to help sell their products. Online collaboration between a manufacturer and distributor is possible. Manufacturers and distributors can accomplish quicker and more efficient supply chains to meet or exceed consumer expectations through online agreements.
E-Commerce Services Providers
The following are E-Commerce Services Providers that are useful;
- Walmart marketplace
What Are the E-Commerce Services?
When you have an e-commerce website, it serves as a virtual shop window to the world. It makes it easier for a buyer and seller to complete a deal. Here, prospective buyers can browse your wares and make purchases in an entirely virtual environment.
What Are the 4 Types of E-Commerce Services?
Here are the 4 types of e-commerce services:
- Business-to-Consumer (B2C)
- Consumer-to-Consumer (C2C)
- Consumer-to-Business (C2B)
- Business-to-Administration (B2A)
What Are the 8 Categories of E-Commerce Services?
The following are the 8 categories of e-commerce services:
- Business-to-Consumer (B2C)
- Business-to-Business (B2B)
- Consumer-to-Business (C2B)
- Consumer-to-Consumer (C2C)
- Traditional Retail
- Digital Products
- Subscription Services
What Are the Main Activities of E-Commerce Services?
E-commerce, often known as electronic commerce, is the exchange of goods and services as well as the sending of money and data through an electronic network, most commonly the Internet. These deals can be B2B (between businesses), B2C (between businesses and consumers), C2C (between consumers), or B2B (between consumers and businesses.
E-commerce services are one aspect of operating an online business. Yet, e-business encompasses all aspects of conducting one’s operations in cyberspace, while e-commerce refers only to the buying and selling of products and services via the Internet. Amazon, Alibaba, and eBay are just a few examples of e-commerce giants that have disrupted the retail industry and made it necessary for long-established chains to adapt.
If you’re thinking of launching an online store, study the industry thoroughly first. Moreover, make sure you start small and narrow to allow for expansion.
- E-Commerce Explained: Types, Examples, And Advantages
- The Best SMALL E-COMMERCE BUSINESS Ideas in 2023 (+ How to Start)
- ECOMMERCE WEBSITE DEVELOPMENT: Detailed Guide
- TOP 20 E-COMMERCE COMPANIES IN 2023
- E-COMMERCE COMPANIES: List of the Top Largest E-commerce Companies 2023 (Updated)
- DIGITAL COMMERCE: An Explanatory Guide to Understanding E-commerce