What is e-commerce (2021)?
E-commerce
E-commerce is the activity of electronically buying or selling of products on online services or over the Internet. Almost anything can be purchased through e-commerce today.
Most businesses with an ecommerce presence use an ecommerce store or ecommerce platform to conduct online marketing and sales activities
This network allows people to do business without the constraint of distance and time.
Widespread use of e-commerce sites such as Amazon and eBay has led to substantial growth in online shopping over the last decade. eCommerce accounted for 5.1% of overall retail revenues in 2007; e-commerce accounted for 16.0% in 2019.
Large number of audience
Online platforms make the reach to a large number of audience which is very difficult with physical marketing. Many companies like Apple, Google, Amazon, etc. are big examples of it.
In the modern world, more than 70% of the people use internet and the other digital services. Which creates a huge opportunity for business organizations and other sectors to advertise and sell their products or services. It gives the business a scalability.
Types of e-commerce
There are generally 6 types of ecommerce which are explained below:
1. Business-to-consumer(B2C)
The term business-to-consumer (B2C) refers to the process of selling products and services directly between a business and consumers who are the end-users of its products or services. Most companies that sell directly to consumers can be referred to as B2C companies.B2C is one of the most popular sales models in the ecommerce context. when you buy shoes from an online shoe retailer, it’s a business-to-consumer transaction. The great examples of b2c are companies like Staples, Amazon, Wal-Mart, Target, REI, and Gap.
2. Business-to-Business (B2B)
B2Be-commerce, short for business-to-business electronic commerce, is the sale of goods or services between businesses via an online sales portal. In general, it is used to improve the efficiency and effectiveness of a company's sales efforts. Business-to-business sales often focus on raw materials or products that are repackaged before being sold to customers.
3. Consumer-to-Consumer (C2C)
A great example of what a C2C model is would be eBay, an online auction site, and Amazon, a marketplace that acts as both a B2B and C2C solution. Consumer to Consumer eCommerce enables the building of relationships between end-users, where the website acts as a platform where consumer correspondence occurs.
4. Consumer-to-Business (C2B)
C2B reverses the traditional ecommerce model, meaning individual consumers make their products or services available for business buyers.
For example, the iStockPhoto business model in which stock photos are available online for purchase directly from different photographers.
For example, the iStockPhoto business model in which stock photos are available online for purchase directly from different photographers.
Affiliate marketing is also an example of a C2B ecommerce model, as a customer can utilize their blog to links back to a product sold on the company's ecommerce website, thereby facilitating the sale and being financially rewarded for doing do.
5. Business-to-Administration (B2A)
B2A e-commerce, also referred to as B2G, is when a business provides an online service for the government, generally through a website. One way to understand B2A e-commerce is through taxes. Taxes, which go to the government, can be filed online through third-party businesses, such as TurboTax or H&R Block.
6. Consumer-to-Administration (C2A)
Consumer-to-administration (C2A) e-commerce encompasses all electronic transactions between individuals and public administration. ... It provides an easy way to establish communication between the consumers and the government.
Examples of C2A include taxes (filing tax returns), health (scheduling an appointment using an online service), and paying tuition for higher education.
Effect of pandemic on ecommerce
eCommerce sales grew by over 30 percent in 2020, driven by unprecedented consumer demand during the global pandemic.
As stay at home orders shifted from weeks to months, many consumers were forced to adapt to shopping online, which has fueled tremendous growth in the sector. Essentially, the increase of more buyers into the online ecosystem has been accelerated due to the pandemic and 2020 lockdown situations.From increased overall sales, to new opportunities in niches previously untapped by entrepreneurs, eCommerce this year will continue to move forward in its way.
Advantages of ecommerce
Understanding the advantages of ecommerce
- Faster buying process.
- Store and product listing creation.
- Cost reduction.
- Affordable advertising and marketing.
- Flexibility for customers.
- No reach limitations.
- Product and price comparison.
- Faster response to buyer/market demands.
Disadvantages of ecommerce
Although modern ecommerce is increasingly flexible today, it still has its own set of disadvantages. Here are some of the downsides to ecommerce retail.
- Faster response to buyer/market demands.
- Limited interation with the customers
- Fault in technical system can impact the business
- No trials or try on for customers
- Lack of In-Store Engagement with Customers. ...
- The Added Cost of Operating an Online Store.
The Future of Ecommerce
Ecommerce businesses have a lot of potentials and 265% growth rate, from $1.5 trillion in 2015 to $5.9 trillion in 2023. This shows a future of steady upward trend with no signs of decline. But, what’s even more interesting is the global eCommerce sales have been steadily eating up the worldwide retail market.
Today’s sellers can do way more than just advertising on Facebook, Instagram, or any other social platform. With the improvement of social media’s selling capabilities, social media platforms now allow customers to conveniently and quickly purchase products up there.
This eCommerce trend cuts the time and effort for shoppers to make their purchases on social media, making them shop more productively. Take advantage of this eCommerce trend in 2021
So, what is the conclusion?
There are certainly advantages and disadvantages to ecommerce, but the future has many opportunities for even greater expansion.
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