What is e-commerce business? History of electronic commerce, advantages and disadvantages and guidelines for starting a business
What is e-commerce business? History of electronic commerce, advantages and disadvantages and guidelines for starting a business
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| What is e-commerce business? |
What is e-commerce business?
E-commerce or electronic commerce is the business method of buying and selling goods and services electronically. It completes business transactions by exchanging with customers over the Internet and communicates effectively with online organizations to clear products and services at specific times. E-commerce sessions allow organizations to offer their products and services to a wider market, which is limited to an extent from the local market.
History of Electronic Commerce
Electronic commerce began with Eugene Biazon's 1979 IT company, whose idea was to provide information between businesses and employees. Since then the concept has been evolving and business transactions have become easier through electronic commerce.
Types or Models of E-Commerce
E-commerce, or electronic commerce, can be classified into different types or models based on different factors. Here are some common types/models of e-commerce:
Business-to-Consumer (B2C): B2C e-commerce refers to transactions conducted between businesses and individual consumers. In this model, businesses sell products or services directly to consumers through online platforms or websites. Examples include online retail stores, online travel booking sites, and food delivery services.
Business-to-Business (B2B): B2B e-commerce involves transactions between two or more businesses. Examples include online marketplaces for industrial equipment, software-as-a-service (SaaS) platforms, and procurement portals.
Consumer-to-Consumer (C2C): C2C e-commerce enables people to trade, buy and sell goods or services directly with each other. It eliminates the need for intermediaries and allows consumers to engage in peer-to-peer transactions. Online classified ads, auction websites and peer-to-peer sharing platforms are examples of C2C e-commerce. Popular C2C platforms include eBay, Craigslist and Airbnb.
Consumer-to-Business (C2B): C2B e-commerce occurs when individual consumers offer products, services, or their expertise to businesses. This model is often associated with freelancing, crowdsourcing or user-generated content platforms. For example, freelance marketplaces like Upwork or Fiver enable individuals to offer their skills and services to businesses.
Business-to-Government (B2G) : B2G e-commerce involves transactions between businesses and government agencies. It includes online procurement systems, e-tendering and other digital platforms that facilitate government purchases from private businesses. In this model, businesses can bid for government contracts or offer their services to government agencies through online channels.
Mobile Commerce (m-commerce): M-commerce refers to e-commerce transactions conducted through mobile devices, such as smartphones or tablets. It allows consumers to make purchases, access online services or conduct financial transactions on the go. Mobile apps, mobile-optimized websites and mobile payment solutions are key components of m-commerce.
Social Commerce: Social commerce combines e-commerce and social media platforms. It involves using social recommendations and reviews to inform product buying or selling decisions directly within social media networks.
It is important to note that these types/models of e-commerce are not mutually exclusive, and many businesses may employ multiple models to reach their target audience or cater to different market segments.
Some examples of e-commerce websites
Some examples of e-commerce websites are given below:
- Online Auctions
- E-Service
- Flight Booking
- Online Digital
- Goods Internet Banking
- Online shopping
- E-Ticketing
- Online Train
Amazon ( www.amazon.com ): Amazon is a major e-commerce platform offering essential products and services. It is a global market where customers prefer to buy products in different categories. It offers electronic books, media materials, electronic equipment, cars and bikes etc. along with miscellaneous products.
eBay ( www.ebay.com ): eBay is a popular site for buying and selling essential goods and services. It establishes person-to-business, business-to-business and business-to-person connections. Here, various products can be new-ann or traded through the marketplace, such as interesting products, materials, cars and bikes.
Alibaba ( www.alibaba.com ) : Alibaba is a global business platform where consumers can choose to buy products in various categories and merchants can sell their products. It is mainly worldwide but especially popular for the choice of buying various products from China.
Flipkart ( www.flipkart.com ): Flipkart is one of the largest e-commerce platforms in India. It sells products in various categories, such as electronics, fashion, mobile and women's products. Its partner is Walmart, a major retailer of essential goods and services.
Etsy ( www.etsy.com ): Etsy is an essential craft and art products website. It automatically gives them the opportunity to sell their own manufactured products, which can be related to meat, handmade products, jewellery, crafts, textiles, prints, glassware, designer products etc.
These are just a few examples and beyond these there are many more e-commerce websites. Examples from different countries include Punjibazar ( www.pujibazar.com ) and Daraz Portal ( www.daraz.com ), Bangladeshi e-commerce websites.
Advantages of electronic commerce
The e-commerce business model has many advantages. Some important benefits are as follows:
Broader markets: Customers can now interact with global markets through e-commerce enabled business platforms. It provides opportunities to enhance the possibilities of products and services desired by the customers.
Streamlined and Easy Transactions: Customers can easily buy products and complete transactions through e-commerce platforms. Customers can get detailed information about the product, get information about the product at the same price and can easily evaluate the product.
Reduced time and labor input : E-commerce businesses require less time and labor to deliver products and services. Customers can easily select products, manage orders and get the products delivered with essential reduction in time and effort.
Customer Ratings and Suggestions : With e-commerce business systems, customers can get product ratings, suggestions and reviews more easily. It helps the customers to keep a proper and smooth monitoring of the quality and quantity of the products.
Business Management Benefits: Starting an e-commerce business requires much less customer management. Store, stock management, order management and transaction tasks are made easy by e-commerce platform.
Disadvantages of e-commerce
E-commerce business is a new and innovative business model. Some of the disadvantages are as follows:
Lack of human resources: E-commerce may require human resources such as clearance centers and storehouses which create difficulty in procurement and delivery.
Lack of connectivity: E-commerce business can be difficult to provide business services in remote areas with one of the wrong connectivity or medium determination.
Guidelines for starting an e-commerce business
Following guidelines can be followed to start an e-commerce business:
Make a business plan: A business plan should be made before starting an e-commerce business. It is very important to make a plan to manage your goals, objectives and your activities.
Do Market Research: Do market research to know where your competition stands to drive your goals and maximize profits. Collect data on various quality attributes including customer preferences, competition, product prices and margins.
Create a website: Starting an e-commerce business requires a professional website. A website should provide complete information to customers including detailed product information, price, order process etc.
Create online payment system: Create a secure and convenient online payment gateway. Customers can purchase products using various payment options.
Marketing and Promotion : You can promote products and services through your e-commerce business. Use different marketing promotion methods including social media marketing, digital advertising and email marketing.
Review customer experience : Review customer experience and try to match their feedback and suggestions. their image
Our last words
E-commerce or electronic commerce is the business method of buying and selling goods and services over the Internet. It is an invention used in modern times. Through this, customers are connected to the global market without the boundaries of the local market.
