what is ecommerce
06 January 2022 / Published in eCommerce

What Exactly is e-commerce? 

Most people associate e-commerce with the online sale or purchase of physical goods. E-commerce, on the other hand, comprises the selling and purchase of non-physical things such as services & digital products. It occurs when a company offers products or services on the internet.

Some e-commerce retailers only sell online. For example, assume an entrepreneur establishes a business offering high-end pet items. Before the internet, they would have had two options: market their item via their boutique pet shop or sell it wholesale to national pet goods retailers. These entrepreneurs now have a third option: e-commerce. They can sell their items through their website, a third-party website, or both.

Sometimes the distinctions between e-commerce and conventional retail blur. For example, when a client compares prices on her smartphone while standing in a physical store examining its physical objects, it isn’t easy to categorize the experience as one or the other.

The various types of e-commerce models are as follows: 

  1. Business to Consumer (B2C): Business to Consumer (B2C) e-commerce is the most common type of e-commerce. Business to consumer refers to a transaction between a company and a customer, such as when you buy a rug from an online store.
  2. Business to Business (B2B): Business to Business e-commerce is when one company sells a product or service to another company, such as a manufacturer, wholesaler, or retailer. Business-to-business e-commerce is not aimed towards consumers and typically involves things such as raw materials, software, or products that are integrated. Manufacturers can also sell to retailers directly through B2B eCommerce.
  3. Direct to Consumer (D2C): Direct to Consumer e-commerce is the newest paradigm of e-commerce, and trends in this area are constantly evolving. D2C refers to a brand selling directly to the end-user without the need of a retailer, distributor, or wholesaler. Subscriptions are the well-liked D2C commodity, and selling from Social media marketing platforms like Pinterest Marketing, Facebook Marketing, Instagram Marketing, Youtube Marketing, and others is popular for direct-to-consumer sales.
  4. Customer to Consumer (C2C): The sale of an item or service to another consumer is called C2C e-commerce. Platforms like Fiverr, Etsy, eBay, and others facilitate consumer-to-consumer transactions.
  5. Consumer to Business (C2B): When a person offers services or goods to a business entity, this is referred to as a consumer to business. C2B includes influencers that provide visibility, photographers, consultants, freelance writers, etc.

The Benefits of E-Commerce 

  • E-commerce allows vendors to access a worldwide audience. They remove the barrier of location (geography). Sellers and buyers might now meet in the virtual world without worrying about the constraints of geography.
  • Electronic commerce will significantly reduce transaction costs. It reduces many of the fixed costs associated with managing brick-and-mortar stores. This enables the firms to have a considerably more significant profit margin.
  • It makes sure that things are delivered fast and with minimal effort on the client’s side. Customer complaints are also handled expeditiously. It saves energy, effort, and time for both businesses and consumers.
  • Another significant advantage is the convenience it provides. A client may shop 24 hours a day, seven days a week. The website is accessible at all times, whereas a store has a fixed set of hours for working.
  • Electronic commerce also permits the client to communicate straight with the business and vice-versa without a mediator. This enables fast communication and transactions.

Disadvantages of E-Commerce

  • The e-commerce portal’s start-up costs are pretty expensive. Installing hardware and software, staff training, and ongoing maintenance and upkeep are all costly.
  • Although it may be a sure thing, the e-commerce sector is fraught with danger. Many businesses that rode the dot-com surge of the 2000s collapsed terribly. Even now, there is a significant possibility of failure.
  • E-commerce might feel impersonal at times. As a result, it lacks the warmth of a personal relationship, which is essential for many companies and goods. This absence of a human touch may be detrimental to services and interests, such as interior design or the jewelry industry.
  • Another source of worry is security. We have lately observed several security incidents in which client information was taken. Customers continue to be concerned about credit card fraud, identity theft, and other issues.
  • There are also fulfillment issues. Even after the order has been placed, there may be issues with the shipment, delivery, mix-ups, etc. Customers are disgruntled and disappointed as a result of this.


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