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01 Oct 2022

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Ecommerce

What is Ecommerce?

Ecommerce (electronic commerce or internet commerce) refers to buying and selling goods or services over the internet and transmitting money and data to complete those transactions.

E-commerce refers to the sale of physical products online, but it can also describe any business transaction facilitated over the internet.

While e-commerce refers to overall aspects of running an online business, e-commerce refers explicitly to the transaction of goods and services.

Therefore, Global e-commerce retail sales are expected to reach $27 trillion by 2020.

Types of Ecommerce Models

Four main types of e-commerce models can describe almost all transactions that take place between consumers and businesses.

1. Business to Consumer (B2C):

When a business sells a good or service to an individual consumer, it is B2C (for example, when you buy a pair of shoes from an online retailer).

2. Business to Business (B2B):

When a company sells a good or service to another company (e.g., a company sells software as a service for use by other companies)

3. Consumer to consumer (C2C):

When a consumer sells a good or service to another consumer, it is C2C (for example, when they sell their old furniture to another consumer on eBay).

4. From consumer to business (C2B):

When a consumer sells their products or services to a company or organization, it is C2B.

E.g., an influencer offers to their online audience for a fee, or a photographer licenses their photo for use by a company).

Electronic Commerce Examples

Electronic commerce can take various forms, involving different transactional relationships between businesses and consumers and other objects exchanged as part of those transactions.

  1. Retail:

Initially, retail is the sale of a product by a company directly to a customer without intermediaries.

  1. Wholesale:

Firstly, we sell products in bulk, often to a retailer who sells them directly to consumers.

  1. Drop Shipping:

Also, the sale of a product manufactured by a third party and supplied to the consumer.

  1. Crowd funding:

We collect consumer funds before a product is available to raise the initial capital needed to bring it to market.

  1. Subscription:

The automatically recurring purchase of a product or service regularly until the subscriber decides to cancel.

  1. Physical Products:

However, any tangible goods that require inventory to replenish and orders physically shipped to customers when sales are made.

  1. Digital Products:

Firstly, downloadable digital goods, templates and courses or media must be purchased for consumption or licensed for use.

  1. Services:

Firstly, it is the capability or set of capabilities provided for a fee.

Then, we can purchase the time of the service provider for a fee.

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