{"id":13207,"date":"2023-09-29T15:27:00","date_gmt":"2023-09-29T15:27:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=13207"},"modified":"2023-10-31T18:46:48","modified_gmt":"2023-10-31T18:46:48","slug":"electronic-commerce","status":"publish","type":"post","link":"https:\/\/businessyield.com\/marketing\/electronic-commerce\/","title":{"rendered":"Electronic Commerce (e-commerce): Definition, Websites, Advantages, and Disadvantages","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

What is eCommerce?<\/strong><\/h2>\n

E-commerce, or electronic commerce (sometimes referred to as e-commerce), is a business model that enables companies and individuals to buy and sell things over the Internet.<\/p>\n

What is the Story Behind eCommerce?<\/h2>\n

Most of us have participated in e-commerce because we’ve all done some sort of online shopping. It follows that e-commerce is prevalent everywhere. However, very few people would be aware that e-commerce has a history that predates the creation of the internet.<\/p>\n

E-commerce has its roots in the Electronic Data Interchange, a method that businesses utilized to make document transfers easier in the 1960s. The very first transaction did not happen until 1994. This included friends buying and selling a CD online using the retail website NetMarket.<\/p>\n

Since then, the industry has undergone a tremendous lot of change, leading to significant evolution. As businesses like Amazon, eBay, Esty, and Alibaba became well-known brands, traditional brick-and-mortar merchants were pushed to adopt new technology in order to survive. These businesses established an easily accessible virtual market place for products and services.<\/p>\n

People’s ability to shop online is being facilitated by new technology. By downloading applications, customers may engage with businesses via smartphones and other devices and make transactions. The advent of free shipping, which lowers prices for customers, has also contributed to the ecommerce sector’s rise in popularity.<\/p>\n

Types of e-commerce models<\/h2>\n

E-commerce can be divided into four main categories. The parties involved in the transactions are the basis of this simple classification. So the four basic e-commerce models are as follows:<\/p>\n

Business to Business(B2B)<\/a><\/h3>\n

These are business-to-business transactions. Here companies do business with each other. The end user is not involved. Therefore, only manufacturers, wholesalers, retailers, etc., participate in online transactions.<\/p>\n

Business to Consumer(B2C)<\/a><\/h3>\n

Here the company sells its goods and\/or services directly to the consumer. Consumers can browse your websites and see products, images, and reviews. They then place their order and the company ships the goods directly to them. Popular examples are Amazon, Flipkart, Jabong, etc.<\/p>\n

Consumer to Consumer(C2C)<\/a><\/h3>\n

From consumer to consumer model is where consumers are in direct contact with each other. There is no company involved. It helps people sell their personal property and assets directly to an interested party. Generally, the goods that are traded are automobiles, bicycles, electronics, etc. OLX, Quikr, etc. follow this model.<\/p>\n

Consumer to Business(C2B)<\/h2>\n

This is the opposite of B2C, it is from consumer to business. Therefore, the consumer offers the company a good or service. Take, for example, an IT freelancer who demonstrates his software and sells it to a company. This would be a C2B transaction.<\/p>\n

e-commerce examples<\/strong><\/h2>\n

Electronic commerce can take various forms, including different transaction relationships between businesses and consumers, and different objects that are exchanged as part of these transactions.<\/p>\n

Retailer:<\/strong>
\nThe sale of a product by a company directly to a customer without intermediaries.<\/p>\n

Wholesale:<\/strong>
\nSelling products in bulk, often to a retailer who then sells them directly to consumers.<\/p>\n

Dropshipping:<\/strong>
\nThe sale of a product manufactured by a third party and sent to the consumer.<\/p>\n

Crowdfunding:<\/strong>
\nThe act of raising funds from consumers before a product is available to raise the seed capital needed to bring it to market.<\/p>\n

Subscription:<\/strong>
\nRecurring automatic purchase of a product or service on a regular basis until the subscriber cancels.<\/p>\n

Physical products:<\/strong>
\nAny tangible asset that requires inventory to be replenished and orders to be physically shipped to customers when sales are made.<\/p>\n

Digital products:<\/strong>
\nDigital products, templates, and courses or downloadable media that must be purchased for consumption or licensed for use.<\/p>\n

Services:<\/strong>
\nA skill or set of skills that are provided in exchange for compensation. Time from the service provider can be purchased for a fee.<\/p>\n

eCommerce\u00a0advantages and disadvantages<\/strong><\/h2>\n

Pros<\/strong><\/p>\n