E-commerce is also known as electronic commerce or internet commerce. It is a process of buying and selling products or services, transfer of money, and electronic means i.e. exchanging data over the Internet. This network allows people to trade without distance and time constraints.
Types of E-commerce
E-commerce can be classified into four main categories. The basis of this simple classification is the parties that are involved in the transaction. So the four basic E-commerce businesses are as follows,
1.Business to Business
It is business to business transactions. Here only companies do business with each other. It does not include the final consumer. So online transactions involve only manufacturers, wholesalers, retailers etc.
2.Business to Consumer
Here the company will sell its goods or services directly to the consumer. Consumers can browse websites and view products, pictures, and reviews. They then place their order and the company delivers the goods directly to them. Some popular examples are Amazon, Flipkart, Jabong etc.
3.Consumer to Consumer
Consumer to consumer, where consumers are in direct contact with each other. No company is involved. It helps people to sell their personal belongings and property directly to the interested party. Typically, the goods traded are cars, bikes, electronics, etc. OLX, Quikr etc. follow this model.
4.Consumer to Business
This is the opposite of B2C, it is consumer to business, in which consumer provides products or services to the company. One thing that distinguishes C2B from other business models is that consumers create value for products. Furthermore, this model fulfills the need for freelancers, who work on the tasks assigned to them by the client. C2B examples include Google Adsense, Commission Junction, and Amazon, etc.
Advantage of E-commerce
- E-commerce gives sellers a global reach. It removes the blockage of space. Now sellers and buyers can meet in the virtual world, without the constraint of location.
- Electronic commerce significantly reduces transaction costs. This allows companies to enjoy higher margins of profit.
- It provides quick delivery of goods with very little effort. Customer complaints are also resolved quickly. This saves time, energy and effort for both consumers and the company.
- One of the biggest advantages is that it allows the customer to make 24 × 7 purchases. The website is functional all the time, it does not have working hours like a shop.
- E-commerce allows customers and businesses to stay in direct contact without intermediaries. This allows for quick communication and transactions.
Disadvantages of E-commerce
- The start-up cost of E-commerce portal is very high. Setup of hardware and software, training cost of employees, and maintenance are all quite expensive.
- There is a huge risk of failure in the e-commerce industry. Many companies have failed in this industry badly. The high risk of failure remains today.
- Lack of a personal touch can be a detriment to a range of services and products such as those for interior designing or the jewelry business.
- Security is another cause for concern. Recently, we have seen many security breaches where customer information was stolen such as credit card and identity theft etc. is a major concern with customers.
- Then there are also problems of fulfillment. Shipping, delivery, mix-up, etc. may also occur after the order is placed. This leaves customers unhappy and dissatisfied.
Who can start their own e-commerce business?
The short answer is anyone can start their own ecommerce business. Some E-commerce businesses are easier to start than others, some E-commerce business owners may have more industry knowledge than others regarding an E-commerce business, but the biggest thing about E-commerce That anyone can build, launch and grow their own e-commerce business if they have some time, energy and resources and are ready to put them to work.
Low barrier to entry
This means that it does not matter how little time or money you have to invest in your e-commerce business. In order to start a new business in traditional business, one has to first hire a shop or store, then according to the business, the products have to be kept in it, then its maintenance can be much more and that too before selling the goods to the customers.
They have a chance to succeed and if they fail, it can be very difficult to start their business again by doing it all over again but this is not the case with E-commerce, you can You can start your own business without renting the shop or without any big cost, or you can run your business online for less than your monthly cell phone bill.
Unlimited Audience Reach
If you open a shop in your area, you can sell your goods only to the people around you, which will be limited people but with E-commerce, you can reach your targeted audience and your products. You can sell to anyone, wherever they are in the world, in which you are not limited to customers of only one region. We truly believe that with the right resources, everyone and anyone can become an e-commerce business owner.
Categories of E-commerce
1.Electronics Markets- Compare the products and their pricing.
2.EDI- Secure interchange of data among various parties electronically.
3.Internet Commerce- Advertise and make sale of various products. It works business to business and business to consumer.
Features of E-commerce
- Global Reach.
- Universal Standard.