What is E-commerce?
E-commerce is the buying and selling of goods and services on the internet. This happens on a computer or a mobile device. E-commerce can also include other activities like internet banking, ticketing systems and auctions that are conducted online. Over the last decade, E-commerce has grown because of technology and digitization. A huge percentage of people in the world use computers or mobile phones daily. In fact, according to Oberlo, E-commerce is projected to grow to 4.14 trillion sales this year.
E-commerce also includes the activity of promoting and driving action to an online sales platform. This sales platform can be an Instagram shop, a website or an e-commerce site like Amazon. In a bid to drive sales, marketers use social media, email marketing, Google ads, search engines, and content marketing.
Model types in E-Commerce
The easiest way to understand E-commerce business is to look at the specific models that exist. This depends on who is doing the sale.
B2C (Business to consumer)
In this model, a business sells a product or service to a consumer directly. For example, a shoe shop would host its products on the website and people can buy directly.
C2C (Consumer to consumer)
In this case, consumers who bought something can choose to resell it. An example of such a platform is Poshmark where people resell clothes they have bought and probably used lightly.
B2B (Business to business)
In this model, businesses sell to each other. An example of this is General Electric which sells industrial and digital products and services to other businesses.
Applications of E-commerce
E-commerce has different applications globally. This includes retail and wholesale applications through the models mentioned above (B2B, B2C, and C2C). People can buy their physical products online and get them delivered. The other applications are in education where people can purchase and take courses online. Finance is also utilizing e-commerce because people can now connect their bank cards and do a host of activities online. E-banking has also made it easier for people to transfer money to other accounts. Another application is auctioning where people can sell things to the highest bidder. They can sell from consumer to consumer.
Buyers and sellers can do E-commerce in a myriad of ways on the internet and there are many types of websites.
– Service website. In this case, a website like Upwork can host a variety of service jobs from clients for freelancers to do and submit online.
– Physical goods website. An example of this is eBay where people sell physical goods online. After the consumer pays, they can get the goods shipped and delivered to their physical location.
– Digital products. These include software, video games, courses, e-books, etc. An example of such a site is Amazon Kindle where people can buy books. Another example is a subscription website where people pay fees to use a service. An audiobook subscription service like Audible would qualify in this classification.
– Dropshipping website. In this case, people sell products, but they do not have any inventory. The business lists a product and they get a supplier to sell and deliver the goods to the customer.
From the above info, you now have a better grasp of what E-commerce is and the different types of E-commerce businesses. Feel free to check out subsequent posts on our website for more information.