Electronic/Internet commerce is the selling and buying of services and products on the internet and transferring data or money in exchange of these transactions. Ecommerce most commonly refers to the selling of goods/services online. Other type of commercial transaction like freelancing is also referred to as ecommerce because the transaction is taking place through the internet.
The first online sale of a CD was done by a man on 11th August, 1994 through a website NetMarket, marked the beginning of ecommerce. For the first time a business sold its product to a consumer through the internet- or “ecommerce” as referred to today. Through advances in ecommerce, consumers can easily browse and purchase different good and services on online marketplaces. Small businesses, freelancer and, corporations all have benefited through ecommerce, as they are now able to provide their products and services to a large number of audiences anywhere in the world. This was not possible using conventional retailing approaches. By 2020, Global ecommerce retail sales are projected to reach $27 trillion.
Types of ecommerce models:
All online transactions between businesses and consumers can be of four main types.
- Business to business (B2B)
B2B to business providing its goods/services to other business. (e.g. Facebook allowing different corporations to run their advertising campaigns on its platform.)
- Business to Consumer (B2C)
B2C refers to businesses providing consumers with goods/services (e.g. I buy some books through Amazon).
- Consumer to Business (C2B)
C2B refers to a consumer offering/selling his services to a businesses or organization. (e.g. A content writer is hired by a corporation to write content or articles for their business website/blog for some period of time.)
- Consumer to Consumer (C2C)
C2C refers to consumers exchanging goods between each other. (e.g. I purchase some loudspeaker on e-bay from someone else)
Example of Ecommerce:
Numerous transactional relationships are involved between consumers and businesses in Ecommerce. These transactions include exchange of products, services, data, information, money between the buyer and sellers. Some of those different transactional objects are given below:
- Physical products:
The shipping of physical goods to a customers after a successful sale, taken from the inventory which is later on replenished.
Consumers buys a product from a business directly without a third party involvement.
Retailer purchases bulk products and sells them to consumers.
A third party ships a company’s product to a consumer, acting a an intermediary.
Regular recurring purchase of a good or service until the subscriber wishes to cancel.
Provision of a service online (e.g. Graphic designing, Web development, Digital Marketing, Content Writing) in exchange for a fee.
- Digital Products:
Purchasing of downloadable digital media, courses, templates and products (software) online for use.