Ecommerce, is known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.
Ecommerce is used to refer to the sale of physical products online, but it can also describe any kind of commercial transaction that is facilitated through the internet.
What are the types of Ecommerce? There are four main types of ecommerce models that can describe almost every transaction that takes place between consumers and businesses.
1- Business to Consumer (B2C): When a business sells a good or service to an individual consumer.
2- Business to Business (B2B): When a business sells a good or service to another business.
3- Consumer to Consumer (C2C): When a consumer sells a good or service to another consumer.
4- Consumer to Business (C2B): When a consumer sells their own products or services to a business or organization.
What are the varieties of Ecommerce? Ecommerce can take on a variety of forms involving different transactional relationships between businesses and consumers, as well as different objects being exchanged as part of these transactions.
1- Retail: The sale of a product by a business directly to a customer without any intermediary.
2- Wholesale: The sale of products in bulk, often to a retailer that then sells them directly to consumers.
3- Dropshipping: The sale of a product, which is manufactured and shipped to the consumer by a third party.
4- Crowdfunding: The collection of money from consumers in advance of a product being available in order to raise the startup capital necessary to bring it to market.
5- Subscription: The automatic recurring purchase of a product or service on a regular basis until the subscriber chooses to cancel.
6- Physical products: Any tangible good that requires inventory to be replenished and orders to be physically shipped to customers as sales are made.
7- Digital products: Downloadable digital goods, templates, and courses, or media that must be purchased for consumption or licensed for use.
8- Services: A skill or set of skills provided in exchange for compensation. The service provider’s time can be purchased for a fee.
What are the Advantages of Ecommerce?
Advantages of E-Commerce:
- E-commerce provides the sellers with a global reach. They remove the barrier of place (geography). Now sellers and buyers can meet in the virtual world, without the hindrance of location.
- Electronic commerce will substantially lower the transaction cost. It eliminates many fixed costs of maintaining brick and mortar shops. This allows the companies to enjoy a much higher margin of profit.
- It provides quick delivery of goods with very little effort on part of the customer. Customer complaints are also addressed quickly. It also saves time, energy and effort for both the consumers and the company.
- One other great advantage is the convenience it offers. A customer can shop 24/7. The website is functional at all times, it does not have working hours like a shop.
- Electronic commerce also allows the customer and the business to be in touch directly, without any intermediaries. This allows for quick communication and transactions. It also gives a valuable personal touch.