WHAT IS E-COMMERCE ?

 What is E-commerce?

The term "e-commerce" (electronic commerce) is the purchasing and selling of products and services, as well as the transfer of data or funds through the internet, mostly the internet. These business transactions occur either as business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer or consumer-to-business.

The terms ecommerce and e-business are frequently employed interchangeably. The term "e-tail" is frequently used to describe the process of transactions that comprise online retail shopping.

In the past two decades, the extensive use of online shopping platforms like Amazon or eBay has led to a significant expansion of online retail. In 2011, the e-commerce market was responsible for 5% of the total retail sales, as per the U.S. Census Bureau. In 2020, at the beginning of the COVID-19 pandemic it had increased to more than 16% of all retail sales.

 

How does e-commerce function?

E-commerce is powered by the internet. Customers can access an online store for browsing through and make orders for goods or services on their own devices.

When an order is made, the customer's internet web browser will exchange data back and back and forth with a server hosting the website. Information related to the order will be transmitted to a central system known as the order management. The information will be then sent to databases that control inventory levels; a vendor system that handles the payment details, using programs like PayPal and banks computers. Then, it will be sent around to an order management system. This is to ensure that the store's stock and customer funds will be sufficient to allow this order to be completed.

 

Types of e-commerce

1. B2B (B2B) e-commerce is : transactions that involve the exchange of services, products or data between companies as opposed to between consumers and businesses. Examples include online directories as well as websites that exchange supply and product information that allow businesses to search products, services and other information and make transactions via electronic procurement interfaces. A Forrester report, published in 2018, forecast that by 2023, B2B electronic commerce will hit $1.8 billion dollars. It will account for 17 percent of U.S. B2B sales.

 

2.  The business-to-consumer (B2C) is : the aspect of retail that is sold on the internet. It's when businesses sell their products, services, or other information directly to customers. The term became common in the dot-com boom in the late decade of the 1990s. Online stores and sellers of goods were considered to be a new concept. Nowadays, there are numerous malls and stores that are virtual online that sell various kinds of consumer products. Amazon is perhaps the best well-known site in this category. Amazon dominates market share in the B2C market.

 

 

3. The term "consumer-to-consumer" (C2C) is : a type of online commerce in which consumers trade goods or services with one another online. The transactions are usually carried out by a third party that offers an online platform where the transactions are completed. Auctions online and classified ads are two instances of C2C platforms. eBay along with Craigslist are two of the most well-known platforms. Because eBay is a business, this form of e-commerce could also be called C2B2C -- consumer-to-business-to-consumer. Platforms such as Facebook marketplace as well as Depop -an online platform for fashion reselling can also facilitate C2C transactions.

 

4. The term "consumer-to-business" (C2B) is : a type of online shopping in which customers offer their goods and services on the internet for businesses to offer bids on or buy. This is a complete opposite to the traditional model of commerce that is B2C. An example of C2B platforms is a marketplace where you can purchase royalty-free images, photographs, media and design elements, like iStock. Another instance would be an employment board.

 

 

5. Business-to-administration (B2A) refers : to transactions conducted online between companies and public administration or government bodies. Many government departments depend on different types of electronic products or services. These services and products typically relate to registers, legal documents and social security information and employment. Companies can offer these services electronically. B2A services have grown significantly in recent years, as has the investment in e-government capabilities.

 

6. Consumer-to-administration (C2A) refers : to transactions conducted online between consumers and public administration or government bodies. The government seldom purchases goods or services from individuals however, individuals often use electronic channels to purchase the following items:

·   Social Security. Distributing information and paying.

·   tax returns. Filing tax returns and paying taxes.

·   Health. Making appointments, giving test results and details about health issues, as well as paying for health care services.

 

7. Mobile E-commerce (m-commerce) is : the term used to describe online sales transactions made using mobile devices such as tablets and smartphones. It encompasses banking, mobile shopping and payment. It also includes mobile banking and payments. chatbots enable m-commerce by allowing customers to complete transactions using texts or voice conversations.

 

Benefits and drawbacks of e-commerce

The benefits of e-commerce are its accessibility 24/7, its ease of access, vast availability of goods and services, and its easy access and global access.

·    Availability.  Apart from interruptions or scheduled repairs, online websites are accessible 24 hours a day, which allows customers to shop and browse anytime. Brick-and-mortar stores typically remain open for a set time frame and even be closed completely on specific days.

·   Access speed. While customers in physical stores can be delayed by crowds, online stores are able to operate quickly. This is dependent on bandwidth and compute factors on both the consumer device as well as the e-commerce website. The shopping cart and product pages take a couple of seconds to load or less. A transaction on e-commerce can be just a few clicks, and takes under five minutes.

·   Wide availability.  Amazon's initial slogan is "Earth's Biggest Bookstore." The company could claim this due to the fact that it was an online website, not a physical shop which had to keep every book it had on its shelves. E-commerce allows companies to offer many different products that can be delivered from warehouses or other warehouses when an order is placed. Customers are likely to have greater than a chance of finding what they are looking for.

·   It is simple to access.  People who shop in a physical store may be unable to locate an item. Visitors to the website can look through the pages of categories in real time, and use the search feature on the site to find the product instantly.

·   International reach. Brick-and-mortar stores offer their products to customers who physically visit their shops. Through e-commerce, businesses are able to sell to anyone that can access the internet. The internet can expand a company's client base.

·   Costs are lower.  Pure play online businesses can cut out the cost of operating physical stores, like rental, inventory, and cashiers. They would have to pay for warehouse and shipping costs but not warehouse costs.

·   Personalization and suggestions for products. Online stores can monitor visitors' browsing as well as their search and the history of purchases. They can make use of this information to offer personalized recommendations on products and gain insights into the markets they are targeting. For instance, they can use the sections on Amazon product pages marked "Frequently bought together" and "Customers who viewed this item also viewed."

The perceived drawbacks of e-commerce include, for instance, sometimes insufficient services for customers as well as consumers not being in a position to touch or see an item prior to buying it and the length of time needed to receive the item.

·   Limited customer service. If customers are having a problem or problem in a physical shop, customers can talk to the cashier, clerk or store manager to get assistance. In an online store customer service may be restricted: The website may only be available during specific hours, and the online customer service options could be confusing to navigate or provide the answer to a specific query.

·   Limited product experience. A website's images can give you a feel about the product, however it's different from being able to experience the product yourself by playing with an instrument, evaluating the image quality on the television, and trying out a new shirt or dress. Online shoppers may purchase items that aren't what they expected and need to be returned. In some instances, the buyer is required to be responsible for the cost of shipping the returned product returned to the retailer. Augmented reality technology is anticipated to increase the capability of consumers to test and evaluate the products of e-commerce.

·   Wait time. In a retail store the customer pays for a product, and takes it home. When shopping online, they are waiting for the item to arrive at their doorstep. Although delivery times are getting shorter as same-day or next-day delivery is becoming more common however, it's not immediate.

·   Security. Highly skilled hackers can make authentic looking websites that advertise selling well-known items. Instead, the website sends customers fake or counterfeit versions of these products or even takes credit card details. E-commerce websites that are legitimate also come with risks, particularly when customers save their credit card numbers with the retailer, making future purchases more convenient. If the website of the retailer has been compromised, criminals might steal credit card details. The security breach could also cause an adverse impact on the reputation of the company.

 

E-commerce platforms and sellers

A few examples of online marketplaces are the following:

1. Alibaba

2. Amazon

3. Chewy

4.  eBay

5.  Etsy

6.  Overstock

7.  Newegg

8.  Rakuten

9.  Walmart Marketplace

10. Wayfair

Providers of e-commerce platform services for customers who host their own store websites are:

1.  BigCommerce

2.  ewido

3.  Magento

4.  Oracle NetSuite Commerce

5.  Salesforce Commerce Cloud (B2B and B2C choices)

6.  Shopify

7.  Squarespace

8.  WooCommerce