What is eCommerce and how many types of eCommerce are there?
eCommerce is huge and it is ever growing. Have you ever purchased goods on the internet? If yes, then assuredly you have played an active role in the world of e-commerce; a world where the transactions are done digitally, and the products are conveniently delivered at the doorstep of the consumer.
Electronic Commerce is the buying and selling of goods and services, or transmitting of data or funds majorly on the internet, in simple eCommerce is the purchase of goods or services on the internet which takes place in between organisations, merchants and consumers.
ECommerce allows the transact across cultural, regional and national in a more convenient and cost effective way, with eCommerce it is easier to successfully get over across national boundaries in comparison to the traditional commerce. The technical standards for conducting eCommerce are same among all nations, and it is easier to find suppliers, prices and delivery terms of the products.
The internet also allows retail and service merchants to market and sell "Complex" goods and services to a larger audience. There are many ways to sell a product on the internet and the popular three are:-
Selling on your own business website
Selling through social networking sites
Selling through an auction site etc.
The Process of e-commerce (B2C)
Types Of Business Models In eCommerce:
Business to Customer (B2C):
This is the commerce between companies and consumers, that involves consumers buying products or services on the online stores through electronic media, which is popularly called as online shopping, this has made ecommerce to be one among the fastest growing sectors of the economy
Business to Business (B2B):
In this, transactions takes place between company to company or in between business and a wholesaler. As per the research, about 80% of the eCommerce in the world is involved in business to business eCommerce, many companies found this way is much better and more profitable where they can quickly promote their products.
Consumer to Business (C2B):
In this, consumer will offer services or products to the companies and in return companies will pay for the offers of the consumer, which is quite opposite to the traditional marketing. We can view this type of C2B transactions in blogs, internet forums etc. where the author directs the viewer or reader to his site for purchases.
Customer to Customer (C2C):
In this transactions takes place between customer and customer, generally this kind of sales are facilitated by a third party site that generates the details of the transaction. This kind of transactions benefit both, the seller as well as the buyer because mediator will not be there so there won’t be any extra charges. It is entirely a private transaction between two individuals.
Business to Government (B2G):
It is generally defined as the commerce between companies and the public sector. In this a company offers its services or products to various government sectors including federal, state and local governments, especially it is used for public procurement, licensing procedures, request for quotations or information, tenders and other government related operations.
Government to Business (G2B):
In this model government provides information or services to the business organisation, examples are placing auctions, calling for tenders and application submission functionalities etc.
Government to Citizen (G2C):
The main aim of this G2C commerce is to provide best and effective services through respective websites to each and every citizen, like various welfare schemes, information regarding government departments, or necessary applications to be used by citizens etc.
Mobile Commerce (m-Commerce):
Mobile Commerce is the buying and selling of goods or services especially through mobiles. A research regarding mobile commerce has declared that more than 70% of the online transactions are done through mobiles, mobile commerce has captured the customer as well as the market share. Best examples are mobile banking, mobile ticketing, mobile payments, mobile vouchers and coupons etc.
Top 10 eCommerce Sites In The World:
Advantages of eCommerce:
- Global Reach
- Shop anytime-24/7
- Convenient - shop from home
- Better deals or discounts for customers
- Possibility to receive cash back offer
- No hassles of conventional shopping
- Lower operating costs for the business
- Cashless payment
- Customer support
- Inventory management
- Advertising & marketing
- Secure market share
Disadvantages of eCommerce:
- Doubts about authenticity and security
- Can’t handle before purchase
- Inconvenient to return goods
- Goods may be damaged
- Goods may get lost enroute
After studying about the eCommerce and various types of eCommerce and analyzing the advantages and disadvantages of the eCommerce, we can conclude that eCommerce is very essential in our day to day life, because we now live in a busy world where time is more valuable and precious than money so, obviously the advantages of eCommerce potentially outweigh the disadvantages of the eCommerce. Anyhow in these days approximately 75% of the world population are carrying smartphones and most of the people are into online shopping.