The dot-com boom of the 1990s brought about a new age of consumerism through online shopping. The internet has made it possible for people to find and buy nearly anything they can think of, all with the click of a button.
What Is E-Commerce?
E-commerce, also known as electronic commerce, is the buying, trading, and selling of goods over the internet, whether through a computer, phone, or dedicated mobile app. E-commerce sales can work as either a supplement or a substitute for brick-and-mortar stores. The e-commerce market also includes drop-shipping, a form of supply chain management where the seller serves as an intermediary between the customer and the product, sending orders out to a warehouse or fulfillment center rather than keeping a stockpile of goods onsite.
While retail sales of physical and digital products make up a large portion of e-commerce transactions, the market also includes internet banking or payment gateways, which are service providers that authorize credit card transactions for online purchases.
4 Types of E-Commerce
There are four main types of e-commerce models:
- Business to business (B2B). B2B e-commerce involves small businesses and large corporations selling their goods and services to one another rather than individual people. Sometimes a business buys from another business for their own purposes or buys from another business to eventually sell to an individual consumer. However, the initial purchase between businesses is the B2B model.
- Business to consumer (B2C). B2C e-commerce is a retail method that involves businesses selling goods directly to individual consumers for personal use. B2C sales bypass third-party retailers or wholesalers and deliver their goods straight to the end consumer through online stores.
- Consumer to consumer (C2C). The C2C business model, also known as an online marketplace, is where individual consumers exchange goods and services through personal or third-party sites (which usually charge a listing or transaction fee).
- Consumer to business (C2B). The C2B model is where individuals, like freelancers or influencers, sell their goods or services to a business. The consumer sets their own pricing when offering their work or products and allows businesses to come to them.
4 Advantages of E-Commerce
There are many advantages to e-commerce business, such as:
- Convenience. E-commerce is a bastion of convenience when you want to buy or sell products. Unlike physical stores, you can log onto the internet 24 hours a day, which means you can make online purchases at any time.
- More variety. Some e-commerce websites provide a wide array of products that offer more selection than many traditional retail stores. Many consumers who cannot find what they’re looking for in physical stores will turn to online shops to search for what they need.
- Faster price comparisons. E-commerce platforms make it easier and quicker for consumers to compare the prices of goods and services.
- Potentially less expensive. Online businesses or individuals can pick a domain name or hosting site to market their goods without needing to shell out thousands of dollars to store them in a physical rental space, designed storefront, or warehouse. Selling online can be especially useful as a new business grows its customer base—it is typically easier to expand a website than a physical store.
Power Technologies – For further enquiries on any of our expertise or services, whether it is for website design & development, mobile application development, or digital media marketing, please feel free to contact or WhatsApp (+6016)-202 1700, email email@example.com or visit powertechnologies.com.my. Thank you.