Ecommerce is the selling and purchasing of goods or services using the internet. The term ‘Ecommerce’, or ‘e-commerce’, or ‘eCommerce’, is also known as internet commerce or electronic commerce.
The first online sale took place in 1994 on an American retail platform called NetMarket. Ecommerce has subsequently evolved and has made products and services easier to be discovered and purchased via retailers and marketplaces online. Businesses ranging from independent retailers to big corporations have all benefited from ecommerce. They can sell their products and services at an enormous scale, which was impossible with offline retail.
According to a study by Digital Commerce360, currently, there are between 12 million and 24 million ecommerce websites in the world.
Nasdaq predicts that 95% of all purchases will take place through ecommerce by 2040.
What is ecommerce, and what are the types of ecommerce?
‘Ecommerce’ or ‘electronic commerce’ or ‘internet commerce’ is the buying and selling of goods and services through an electronic medium (internet). It enables customers to make their purchase(s) from businesses online irrespective of the time and location. There are four popular ecommerce models:
- Business to Business (B2B)
- Business to Consumer (B2C)
- Consumer to Consumer (C2C)
- Consumer to Business (C2B)
What is B2B ecommerce?
A business transaction between two or more companies without the involvement of the consumer is called B2B. This model of ecommerce involves only manufacturers, wholesalers, retailers, and others.
What is B2C ecommerce?
B2C is a direct transaction between a company and customer. In this model, stores sell their products or services directly to the customer. The customer can also visit their website, take a look at their products/services, and read their reviews. They can then place the order, and the goods are shipped to them directly by the company.
What is C2C ecommerce?
C2C is a direct transaction between customers without the involvement of any company. In this model, people sell their goods or personal assets directly to people who are interested in them.
What is C2B ecommerce?
C2B is the opposite of B2C, where the consumers provide their goods or services to the company. For instance, a software engineer can sell his products/services to a company that is interested in it.
What is ecommerce, and how does it work?
The term ecommerce is used to define all commercial transactions conducted online. In simple terms, it is the selling and buying of products or services. Online businesses work on the same concepts of offline stores. There are three steps in any ecommerce transaction – placing/receiving the order, processing the order, and shipping the order.
What is the first step in an ecommerce transaction?
For a customer, placing the order on an online store is the first step in an ecommerce transaction. For a business, receiving the order through their website is the first step.
What is the second step in an ecommerce transaction?
Once the customer has placed the order, the details of the customer’s order are processed and completed. This is the second step in an ecommerce transaction.
What is the final step in an ecommerce transaction?
Shipping the order is the final step in an ecommerce transaction. Once the order has been processed by the merchant, the customer is assured that the order will be delivered on time, and the delivery process is carried out.
What is an ecommerce business?
A business that sells its products or services online or through an ecommerce platform is an ecommerce business.