What is E-commerce?

what-is-e-commerce-300x226 What is E-commerce?E-commerce, generally known as electronic commerce or internet commerce, relates to the purchasing and selling of products or services by using the world wide web, and also the transfer of money and information to perform transactions. E-commerce is usually used to relate to the sale of physical products on the internet, however, it can also illustrate any sort of commercial transaction which is assisted through the world wide web.

Although e-business relates to virtually all factors of running a web-based business, e-commerce refers particularly for the exchange of goods and services.

The story of e-commerce starts with the first ever online sale: on the August 11, 1994a person sold a CD by the music group Sting to his good friend by using his website Net Market, an American retail framework. This really is the first instance of a customer buying an item from a business by using the World Wide Web-or “e-commerce” as we generally know it today.

Ever since then, e-commerce has developed to make products simpler to discover and buy through trusted online retailers and marketplaces. Independent freelancers, smaller businesses, and big corporations have taken advantage of e-commerce, which helps them to sell their products and services at a scale that was very unlikely with traditional offline retail.

Global retail e-commerce revenues are estimated to reach £20 trillion by 2020.

Different types of E-commerce Models

There are actually four main different types of e-commerce versions that can illustrate virtually every transaction which takes place anywhere between consumers and businesses.

1. Business to Consumer (B2C):

Whenever a business sells a great service to an individual consumer (e.g. You purchase a set of shoes or boots from a web-based retailer).

2. Business to Business (B2B):

Every time a business offers an outstanding service to another company (e.g. A company sells software packages-as-a-service for additional businesses to use)

3. Consumer to Consumer (C2C):

When a consumer sells a good or service to another consumer (e.g. You sell your old furniture on eBay to another consumer).

4. Consumer to Business (C2B):

When a consumer sells their own products or services to a business or organization (e.g. An influencer offers exposure to their online audience in exchange for a fee, or a photographer licenses their photo for a business to use).

Examples of Ecommerce

E-commerce can take on a variety of forms involving different transactional relationships between businesses and consumers, as well as different products 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 an item, which can be manufactured and shipped to the consumer by a third party.

4. Crowdfunding:

The collection of money from customers in advance of a product becoming available in order to raise the startup capital required to take it to market.

5. Subscription:

The automated recurring purchasing of a service or product regularly prior to the subscriber chooses to cancel.

6. Physical items:

Any tangible good that needs inventory to become replenished and orders that should be physically delivered to consumers as sales are made.

7. Digital products:

Downloadable digital goods, templates, and courses, or media that need to be bought for consumption or licensed for use.

8. Services:

A skill or expertise provided in return for reimbursement. The service provider’s time can be bought for a small fee.