What is E-commerce?

Ecommerce refers to online sales and purchases of goods and services. There are numerous types of ecommerce market segments and devices that can be used in ecommerce, such as computers, tablets, and smartphones. Besides books and music, e-commerce also offers airplane tickets, investments, and banking services online. As a result, it is considered one of the most disruptive technologies of our time.

History of eCommerce

Ecommerce has been part of our lives at some point, so most of us have shopped online. In other words, e-commerce is everywhere. There is a history of eCommerce before the internet, but few know about it.

Ecommerce began in the 1960s when companies began transferring documents electronically using an electronic system called Electronic Data Interchange. Until 1994, no transaction had taken place. An online retail website called Net Market was used to sell CDs between friends.

Industry evolution has occurred over the past few decades. Alibaba, Amazon, eBay, and Etsy made household names out of traditional brick-and-mortar retailers. Therefore, their virtual marketplace provides consumers with easy access to goods and services.

Online shopping continues to get easier with new technology. Smartphones and other devices make it possible for people to connect with businesses and make purchases. In addition, free shipping has helped increase the popularity of e-commerce.

What are the types of e-commerce?

There are several ways that an e-commerce company can operate, depending on its products, services, and organization. Popular business models are listed below.

M-commerce

Mobile commerce also referred to as “m-commerce,” is the practice of conducting online transactions through a mobile device. Since so many people use mobile devices, m-commerce will likely surpass non-mobile commerce by 2021–2022.
Today, many people research products and shop online through their phones. You should optimize your online store for mobile since this trend shows no signs of slowing.

Enterprise eCommerce

A company’s enterprise e-commerce initiative involves buying and selling e-commerce products for large companies. A large business that sells multiple products online and has multiple brands is considered to be engaged in enterprise e-commerce.

Social media e-commerce

Marketing and promoting e-commerce stores with social media can be effective. Social media not only connects you with your friends and family but also helps your business to attract customers. For social media marketing to be effective, you must engage your customers in a casual setting.

You can use social media to help you in the following ways:

• Attract new customers
• Enhance brand awareness
• Boost sales online

There are a few common business models that have influenced the world of e-commerce over the last few decades:

• B2C – Businesses sell directly to consumers. It is one of the most common models and there are many variations to it.
• B2B – Businesses sell to other businesses. As a result, the buyer often resells the products to the consumer.
• C2B – Consumers sell to businesses. In a C2B business, customers can sell products and services to other companies.
• C2C – Consumers sell to other consumers. To connect consumers to businesses, companies create online marketplaces.
• B2G – Businesses sell to governments or government agencies.
• C2G – Consumers sell to government agencies or governments.
• G2B – Governments or government agencies sell to businesses.
• G2C – Governments or government agencies sell to consumers.

 

Pros and cons of e-commerce

Pros

• Owners will benefit from semi-passive revenue generation.
• Consumers seeking specific products will find it convenient to browse.
• By not being restricted by your physical location, you may be able to earn more money.
• Cost savings assuming digital presence are cheaper than building, insurance, and taxes.
• Better marketing control with targeted ads and popups.

Cons

• Customer service is limited as there is little face-to-face interaction.
• A customer must first believe in the product before seeing it.
• The products cannot be handled before delivery (cannot try before buying).
• There is a risk of losing revenue or income due to a down website.
• There is a high level of dependency on shipping constraints, which may not be within your control.
• As a result of lower entry barriers and greater customer potential, there is a higher level of competition.

Summarizing

There is no doubt that e-commerce has become an integral part of our society today. Companies that are willing to devote sufficient resources to the development of E-Commerce in the future will be the successful companies of the future.

Technology does not affect e-commerce. The companies who use the opportunity as opportunity to re-design their business processes will likely end up reaping the most benefits from the initiative. Furthermore, E-Commerce gives the consumer access to businesses and companies worldwide.