E-Commerce Or Electronic Commerce
E-commerce is a popular term for e-commerce or even internet commerce. The name is self-explanatory; it is the meeting of buyers and sellers on the Internet. It includes the transaction of goods and also services, the transfer of funds, and data exchange.
So when you log into your Amazon and buy a book, this is a typical example of an e-commerce transaction. Here you cooperate with the seller (Amazon), exchange data in the form of images, text, delivery address, etc., and then you make that payment
Types Of E-Commerce
E-commerce can be divide into four main categories. This simple classification is base on the parties involved in the transactions. The four basic models of e-commerce are therefore as follows:
These are business-to-business deals. Here companies do business with each other, and the end-user is not involved. Therefore, online transactions are only available to manufacturers, wholesalers, retailers, etc.
Business for consumers. Here the company will sell its products and services directly to the consumer. Consumers can browse their websites and view products, pictures, and reviews. Then they place their demand, and the company sends the goods directly to them. Famous examples are Amazon, Flipkart, Jabong, etc.
From consumer to consumer, consumers are in direct contact with each other. There is no company involved. It helps people sell their personal property and also assets directly to an interested party. Usually, the goods traded are cars, bicycles, electronics, etc. OLX, Quikr . they follow this pattern.
It’s the opposite of B2C; it’s a consumer for business. Therefore, the consumer makes a good or service available to the company. For example, imagine a freelance IT professional demonstrating and selling your software to a company. This would be a C2B transaction.
Examples Of E-Commerce
Advantages Of E-Commerce
- E-commerce offers sellers global reach, and also they remove the barrier of the place (geography). Now sellers and consumers can meet in the near world without any location barriers.
- E-commerce will significantly reduce transaction costs. Eliminate many fixed maintenance costs from physical stores. This enables companies to have a much higher profit margin.
- Ensures fast delivery of goods with minimal effort on the part of the customer. Customer complaints are also processed promptly, saving time, energy, and hassle for consumers and businesses.
- Another great benefit is the convenience it offers. A customer can buy 24 × 7. The website is helpful at all times; it has no opening times like a shop.
- Electronic commerce also enables direct contact between customer and company without intermediaries. And also this allows quick communication and transactions, adding a valuable personal touch.
Disadvantages Of E-Commerce
- The start-up costs of the e-commerce entrance are very high. Hardware and also software configuration, training costs for employees, ongoing maintenance, and servicing are pretty expensive.
- While it may seem like a surefire thing, the e-commerce industry is at high risk of failure. Many companies caught up in the dot-com wave of the 2000s have failed miserably, and the increased risk of loss still exists today.
- Sometimes e-commerce can feel impersonal. As a result, he lacks the warmth of an interpersonal relationship that is important to many brands and products. This lack of personal touch can be a disadvantage for many services and products, such as home accessories or jewelry.
- Security is another concern. We have witnessed numerous security breaches recently in which customer data has been stolen. Credit card theft, identity theft, etc., remain of great concern to customers.
- Then there are the compliance issues. Even after ordering, there may be problems with shipping, delivery, mix-ups, etc. That makes customers dissatisfied and dissatisfied.