E-commerce, also known as electronic commerce, is the concept of buying goods and services online. It means you can buy any good or service that you want by just using the internet. You can also transfer the money and data to execute the transaction. E-commerce is a platform where people can buy and sell their goods or services by using the Internet. When it comes to transferring money, you can do it via the internet. It is also known as internet commerce as it is based on the Internet. You might wonder which channels are the best to execute online business.
Nowadays, the most asked question about e-commerce usually is which channels are best to execute business online. But one of the most curious questions is the appropriate spelling of e-commerce. The truth is, there isn’t anyone right or wrong, and it usually comes down to preference. For that, you need to know how many kinds of e-commerce are there online.
TYPE S OF E-COMMERCE
As commerce continues to grow and evolve, so do the ways that it is conducted. The most traditional types of e-commerce models are:
Business to consumer (B2C):
B2C e-commerce is the most popular e-commerce model today. It means that the sale occurs between a consumer and a business—just the way you buy a rug from an online retailer.
Business to business (B2B):
B2B e-commerce is a business selling a good or a service to another business. Just like a manufacturer and wholesaler. Or a wholesaler and a retailer. Business-to-business e-commerce does not involve any consumer. Usually, it involves products like raw material, software, or even products that are combined. Manufacturers can also sell directly to retailers via B2B e-commerce.
Direct to consumer (D2C):
Direct-to-consumer e-commerce is the newest model of e-commerce. D2C means that a brand is selling directly to its customers. This means they skip going to the retailer, distributor, or wholesaler. These days, subscriptions are getting famous because of social media. Facebook, Pinterest, Instagram, Snapchat, etc., are popular platforms for direct consumer sales.
EXAMPLE OF E-COMMERCE
Everyone from independent freelancers to some small business to the largest corporations can benefit from the ability to sell their services and goods online at a certain scale. Some examples of types of e-commerce are given below.
Retail: The sale of products directly to a consumer without any intermediary.
DROPSHIPPING: The concept of the sale of products that are manufactured and shipped to consumers is called dropshipping. This service also provides shipping through via a third party.
Digital products: Any downloadable items like templates, e-books, courses, software, or even media that must purchase to use. Whether it is a purchase of software, cloud-based products or tools, or digital assets, these represent a huge percentage of e-commerce transactions.
Wholesale: Products that are sold in bulk are called wholesale. These kinds of products are usually sold to a retailer. The retailer then can sell the products to the consumers.
Services: Coaching, writing, influence marketing, etc., can be included under this list. These skills are purchased and paid for online.
Subscription: A prevalent D2C model is the subscription service
Crowdfunding: This is allowing sellers to raise their startup capital to bring their products to the market. If they get enough consumers that purchased their items, it is then created and shipped.
SOME OF THE POPULAR E-COMMERCE SITES
Successful e-commerce sites earn trillions of dollars in sales every year. It is almost inconceivable in today’s day that a company would not be using a digital space of its own to drive the sales and the bottom lines.
Alibaba: Alibaba was launched in 1999. It is a Chinese company that is by far the world’s most successful e-commerce company and retailer. It is the largest B2B(Alibaba.com), C2C(Taobao.com), and B2C(Tmall) marketplaces around the world. Their online profits have surpassed all the US retailers, including Walmart and Amazon.
Amazon: Amazon is the largest e-commerce retail website in the United States, and it has also changed the face of retail a lot. It has uplifted the retail world that now everyone wants to know how to beat Amazon.
Walmart: Once the top retailer of America, Walmart has focused on its online business. With great results, offering traditional retail sales. They also offered grocery delivery and subscription services too.
eBay: One of the first w commerce sites in the world is eBay. It still dominates the digital market space and gets profit from businesses and individuals selling their products online.
Wayfair: This e-tailer basically does drop-shipping and hardly carrying any inventory. This home furnishing e-tailer manages suppliers, orders and fulfills them. They credit their success on personalization. It means studying how their customers engage and offer up products that they believe consumers love the most.
THE BENEFITS OF E-COMMERCE
Online e-commerce offers a huge amount of benefits. The biggest benefit is convenience. It makes purchasing simpler, faster, and less time-consuming. They also allow for 24 hours sales and quick deliveries. Another good side is the personalization and customer experience. E-commerce marketplaces can create rich user profiles that give them an option to personalize the products. Also, they can make suggestions for other products that they might find interesting as their choice. It helps the marketplace to improve. It also improves the customer experience by making the shoppers understand on a personal level. Another benefit of e-commerce is that customers worldwide can easily buy and sell on e-commerce sites. It is effortless nowadays. Geographical barriers no longer restrict companies. The minimized expenses are the key. Digital sellers can launch their online stores with minimal startup and operating costs very easily.
In this fast-moving world, doing business and buying products is not anymore a hassle. Anybody can start their startup through e-commerce. You will find different kinds of products and services here with reasonable pricing, which is the charm.