What is E-Commerce?
E-commerce (electronic commerce) is that the activity doing by electronically buying or selling products on online services or over the net. e-commerce makes on technologies like mobile commerce, electronic funds transfer, supply chain management, online transaction processing, electronic data interchange (EDI), Internet marketing, inventory management systems, and automatic data collection systems. E-commerce is continuously driven by the technological advances of the semiconductor industry and is that the largest sector of the industry.
E-commerce typically uses the online for a minimum of a component of a transaction’s life cycle although it’s going to also use other technologies like e-mail. Typical e-commerce transactions include the acquisition of products (such as books from Amazon) or services (such as music downloads within the style of digital distribution like iTunes Store). Mainly there are three areas of e-commerce: online retailing, electronic markets, and online auctions. E-commerce is supported by electronic business.
What are the types of e-commerce?
- Business to Business (B2B) (websites like Shopify),
- Business to Customer (B2C) (websites like Amazon),
- Customer to Customer (C2C) (websites like eBay),
- Customer to Business (C2B).
Retail: Selling products directly without an intermediary.
Crowdfunding: Crowdfunding is let sellers quick startup capital so as to bring their product to the market. When enough consumers have purchased the relevant item, then make it and ship.
Dropshipping: Selling products that are manufactured and shipped to consumers through a 3rd party.
Subscription: a well-liked D2C model, subscription services are the recurring purchases of products or services on an everyday basis.
Digital products: Items willing to download via web browsers like templates, courses, e-books, software, or media that has to be purchased to be used. Maybe it’s the acquisition of software, tools, cloud-based products, or digital assets, these represent an outsized percentage of e-commerce transactions.
Wholesale: Products are selling in a bulk. Wholesale products are selling to a retailer, who sells the products to consumers.
Services: These are skills like coaching, writing, influencer marketing, etc., that are purchased and procured online.
What are some examples of e-commerce?
What are the advantages of e-commerce?
- Another biggest advantage is the convenience it offers. A customer can shop anytime since the website is working all the time.
- Electronic commerce also allows the customer and the business to be in touch directly, without any middle man. This allows for fast communication and transactions. It also gives a valuable personal relationship.
- E-commerce provides sellers with a global reach. They remove the barrier of physical location. Now sellers and buyers can deal in the virtual world, without the problem of the location.
- Electronic commerce will substantially lower the transaction cost. It avoids many necessary costs of maintaining brick and mortar shops. This allows the companies to keep a much higher margin of profit.
- It provides fast delivery of goods with very easy effort on side of the customer. Customer complaints are also willing to address quickly. It also saves a lot of time, energy, and effort for both the company and the consumers.
What are the disadvantages of e-commerce?
- Security is another area of concern. Only recently, we’ve witnessed many security breaches where the data of the purchasers were stolen. MasterCard theft, fraud, etc. remain big concerns with the shoppers.
- Then there are fulfillment problems. Even after the order is placed there are problems with shipping, delivery, mix-ups, etc. This leaves the shoppers unhappy and dissatisfied.
- The initial investment of the e-commerce portal is very high. The setting up necessary hardware and therefore the software, the training cost of employees, the constant maintenance and maintenance are all quite expensive.
- Although it should appear to be a foregone conclusion, the e-commerce industry contains a high risk of failure. Many companies riding the dot-com wave have failed miserably. The risk of failure is the same even today.
- At times, e-commerce can feel impersonal. So it reduces the number of interpersonal relationships which is very important for brands and products. This lack of a private touch is a drawback for several kinds of services and products like landscaping or the house building business.