Online businesses are growing more and more by the day, however many still wonder first of all what Ecommerce is and how can it benefit them in their business. There are various types of Ecommerce and they are normally split into different categories based on the nature of the type of business. Even if you are not planning to start an online business in the near future, knowing more information about it can be a great start to begin developing ideas at a later date.
What Is Ecommerce and what does it include?
The official meaning of Ecommerce is the act of making transactions over the internet. This can include starting up a website, advertising products or services, and subsequently generating online leads and sales. Ecommerce is an abbreviation for Electronic Commerce because all transactions are done over the internet (electronically).
The benefits of Ecommerce
Convenience and efficiency has drastically improved since Ecommerce has begun to take effect. Businesses are now able operate with less expense and in turn more profitability. In addition, they have a much larger access to users, usually on a worldwide scale (if your business allows for this) which will broaden your grounds for advertising.
Ecommerce typically revolves around selling and buying products online. More consumers each day are making online purchases instead of buying from offline stores simply due to the costs at which products can be sold online as well as the convenience at which the products can be obtained.
Forms of Ecommerce
While the general concept of Ecommerce has already been discussed, it can obviously come in several different forms which are outlined below.
Online Shopping – Even if you think you are not in tune with the latest technology available, you may already be an Ecommerce consumer. Online shopping for items including apparel, toys, building materials, and tools count as transactions of electronic commerce. Even ordering a concert or sporting event ticket over the internet constitutes as Ecommerce and is generally done in a Business to Consumer (B2C) fashion.
Online Auctions – Another common form of Ecommerce is online auctions. This type of transaction includes a specific product that is being sold for an unknown price. Buyers can bid just like offline auctions but do not need to be physically present at the auction, the transaction is normally then made with a credit card or direct deposit.
Online Banking – Most financial institutions have now added online banking facilities to their group of consumer services. This form of Ecommerce simply involves the ability to manage your bank accounts and transactions online. This eliminates the need to physically visit the bank just to perform simple transactions.
Types of Ecommerce
There are three main categories that are characterized not by the type of business it involves, but more the participant who makes the transactions.
Business to Consumer (B2C) – This type of Ecommerce refers to the most common transaction between seller and the general consumer. Commonly called B2C activity, this exchange is made by countless internet shoppers throughout the globe. This is the type of Ecommerce in which we offer with our free ecommerce software.
Business to Business (B2B) – Also known as B2B, this category refers to the business transactions between companies. An example of a business to business arrangement is when a manufacturer of a product sells to the retail seller.
Consumer to Consumer (C2C) – Commonly referred to as C2C, this type of Ecommerce involves a transaction similar to bartering. The most evident example of this is bidding and buying from an online auction like eBay or (in New Zealand) Trade Me.