The word e-commerce stands for Electronic commerce its means buying or selling goods and services by the help of computer or internet and transacting or facilitating business on the Internet. E-commerce is short for ‘electronic commerce’.
Popular examples of ecommerce revolve around buying and selling online. But the ecommerce universe contains other types of activities as well. Any form of business transaction conducted electronically is ecommerce.
Ecommerce allows consumers to electronically exchange goods and services with no barriers of time or distance. Electronic commerce has expanded rapidly over the past five years and is predicted to continue at this rate, or even accelerate. In the near future the boundaries between “conventional” and “electronic” commerce will become increasingly blurred as more and more businesses move sections of their operations onto the Internet.
Types of Ecommerce: Ecommerce can be classified based on the type of participants in the transaction:
- Business to Business (B2B)
B2B ecommerce transactionsare those where both the transacting parties are businesses, e.g., manufacturers, traders, retailers and the like.
- Business to Consumer(B2C)
When businesses sell electronically to end-consumers, it is called B2C
- Consumer to Consumer (C2C)
Some of the earliest transactions in the global economic system involved barter — a type of C2C transaction. But C2C transactions were virtually non-existent in recent times until the advent of ecommerce. Auction sites are a good example of C2C ecommerce.
How does e-commerce work ?
Because there are different products and services for consumer can be delivered, e-commerce by its nature is varied in the way it works. In its most basic form e-commerce works as follows:
- Consumers choose a product or service on a website
- Consumers pay electronically on the website (online credit card transactions) or using a third party payment provider such as PayPal
- The business owner or merchant receives the order and payment and the order is fulfilled (delivered by post, booked in for services etc)
Example of e-commerce:
- Online Shopping
- Online Ticketing
- Internet Banking
- Online Auctions
Advantages of e commerce :
- Reduced cost
- Shorter time frames: E-commerce allows for highly reduces lead times, as well as the more efficient delivery of products.
- Increased consumer reach: E-commerce allows online merchants toSTOCK a larger product range than a traditional store. This larger product range means more products are suited to a larger consumer base and hence greater possible reach. E-commerce stores are also available from anywhere, interstate and international customers are no longer a missed segment – this results in a massively increase possible consumer base.