E-Commerce: Definition, Types, And Advantages
E-commerce, also known as electronic commerce or Internet commerce, is buying and selling products by electronic means, such as mobile applications and the Internet. It is usually used to refer to the sale of physical products online and any commercial transfer made more accessible through the Internet.
E-commerce has become very popular in recent years, and in a way, it is replacing physical stores. This new model allows you to buy and sell products worldwide at any time of the day and without the need to move from the place where you are.
Types Of E-Commerce:
1. Business to Consumer (B2C)
These are the transactions that occur between businesses and consumers. In these cases, the companies sell products or services through an Online store to end-users, that is to say, to consumers.
2. Business to Business (B2B)
As its name implies, B2B e-commerce refers to transactions carried out between two companies or businesses. This means that any company with a client for another uses this model. We have as examples the online accounting software for small businesses, payroll processing companies, and companies that help others advertise their products, events, or content, among others.
3. Consumer to Business (C2B)
This is consumer-to-business e-commerce and occurs when a consumer sells or receives a monetary value from a specific business. A case like this happens when a blog owner sells advertising space to a company or industry.
4. Consumer to Consumer (C2C)
It is the type of electronic commerce that occurs when something is bought and sold between two consumers. C2C usually takes place in online marketplaces; an example of this type of e-commerce would be eBay since an individual sells a product or service to another on this website. It can also happen on other sites like Amazon & Etsy.
5. Government to Business (G2B)
These transactions occur when a business pays for goods, services, or government fees online. This happens, for example, when a company pays taxes using the Internet.
6. Business to Government (B2G)
It is the reverse of the above. In this type of e-commerce, the government entity uses the Internet to buy goods or services from a company. This case could occur when a regional or district municipality hires a web design company to update its website.
7. Consumer to Government (G2C)
It is the type of electronic commerce that connects consumers with the government, facilitating the transactions to be carried out between the two parties. It is used to pay traffic tickets, car registration renewals, taxes, etc.
Advantages Of E-Commerce
- It has a low financial cost: You save on the cost of advertising and marketing, hiring staff, renting a space, paying for some services, among others.
- Brings you high income: It is proven that the effectiveness of an excellent online store exponentially increases the income of a company or business. This occurs since consumers have already become accustomed to making purchases online since payment procedures are increasingly diverse and secure.
- Time-saving: Your customers do not have to spend time on unnecessary trips and spend a large part of their time making their purchases, so this online purchase option is attractive.
- You generate sales anywhere in the world: Another advantage of e-commerce is that a new brand can quickly sell to customers worldwide. You can discover a new audience in America and Europe, Asia, or Africa.
- You get new customers with search engine visibility: Search engine traffic also drives online retail.
- You provide comprehensive information of what your business offers: There are limitations on the amount of data displayed in a physical store. However, this does not happen in the online store, where you can convince your customer to buy what you offer, thanks to the extra information you can provide.
- You make a faster sale of the services or products you offer: Your customers no longer need to search the entire store to purchase the product they want or form long lines to pay. This is simplified in online sales with a few clicks.
- Your business can be open 24 hours a day, 365 days a year: An e-commerce store allows you to attract those customers who may have inflexible working hours or who do not have time to shop in person.
- You can easily open analytics campaigns: Through e-commerce, you can calculate and evaluate sales effectiveness, track customers, carry out marketing campaigns, and more.
A Piece Of Information About Its Origin
On August 11, 1994, around noon, Phil Brandenberger of Philadelphia logged on to his computer and used his credit card to purchase “Ten Summoner’s Tales” by musician Sting for $ 12.48 plus shipping. Many consider that moment as the first actual e-commerce transaction.
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