What is E-commerce? How is it important in your business?
The purchase and sale of goods, products, and services over the internet are referred to as “e-commerce.” The internet network is used to supply these services. E-commerce also includes the exchange of money, funds, and data. Commercial to Business (B2B), Business to Customer (B2C), Customer to Customer (C2C), and Customer to Business (C2B) are the four types of business interactions (C2B). E-commerce is a commercial transaction that takes place over the internet, according to the conventional definition. Amazon, Flipkart, Shopify, Myntra, eBay, Quikr, and Olx are just a few examples of e-commerce websites.
E-Commerce Models Types
There are four major categories of electronic commerce. The parties involved in the transactions serve as the foundation for this straightforward categorization. So here are the four primary electronic commerce models:
- From one company to another
This is an example of a business-to-business transaction. Companies are doing business with one another here. There is no involvement of the final consumer. As a result, online transactions are limited to manufacturers, wholesalers, and merchants.
- Individual to Individual
The term “consumer to consumer” refers to situations in which consumers interact directly with one another. There is no involvement from any corporation. It enables people to sell their own belongings and assets to a willing buyer.
- consumer to consumer
The term “consumer to consumer” refers to situations in which consumers interact directly with one another. There is no involvement from any corporation. It enables individuals to sell their own belongings and assets to a willing buyer. Cars, bikes, gadgets, and other such items are usually traded. This model is used by OLX, Quikr, and others.
- From Business to Consumer
The consumer-to-business model is the polar opposite of B2C. As a result, the customer gives the company a good or service. Assume you’re an independent IT consultant.
Advantages of E-Commerce
- E-commerce allows vendors to reach a worldwide audience. They dismantle the geographical barrier (geography). Without having to travel, sellers and buyers can now meet in the virtual world.
- Transaction costs will be significantly reduced thanks to electronic commerce. It eliminates a lot of the fixed expenditures of running a physical store. As a result, the companies can enjoy a significantly bigger profit margin.
- It ensures that things are delivered quickly and with little effort on the side of the customer. Customer issues are also immediately addressed. It also saves both customers and businesses time, energy, and effort.
Disadvantages of E-Commerce
- The e-commerce portal’s start-up costs are quite high. The expense of setting up the gear and software, employee training, and ongoing maintenance and upkeep are all significant.
- The e-commerce industry, while it may appear to be a sure thing, has a significant potential for failure. Many businesses that tried to cash in on the dot-com boom of the 1990s failed spectacularly. Even now, there is a high possibility of failure.
- E-commerce might feel impersonal at times. As a result, it lacks the warmth of a human connection, which is critical for many businesses and goods. For many sorts of services and goods, such as interior design, the lack of human touch might be negative.
- E-commerce might feel impersonal at times. As a result, it lacks the warmth of a human connection, which is critical for many businesses and goods. For many sorts of services and products, such as interior design or jewelry, the lack of human touch might be a disadvantage.
- Another source of concern is security. We’ve recently seen a number of security incidents in which client information has been stolen. Customers are concerned about credit card theft, identity theft, and other issues.
