E-commerce is the purchasing and selling of products or services through digital platforms. It is a modern-day invention, which supports the trading of products or services via electronic means, or the internet. This article contained numerous e-commerce And types business forms and , each with distinct features. You must read the article thoroughly to get appropriate information about e-commerce.
What is E-commerce? Types of E-Commerce
Commerce is the trading of products and services. E-commerce business is the trading of goods or services over the internet. In the current scenario, when a person refers to e-commerce, they mostly refer to purchasing and selling products over the web.
However, any transaction that is executed by electronic means is also regarded to be e-commerce. In this blog, you’ll know about E-commerce and its types.
Types of E-Commerce
Types of E-Commerce encompass various models and platforms facilitating online transactions and digital business interactions. Here are the different types of e-commerce platforms,
- Business-to-Business (B2B)
- Business-to-Consumer (B2C)
- Consumer-to-Consumer (C2C)
- Consumer-to-Business (C2B)
- Business-to-Administration (B2A)
- Consumer-to-Administration (C2A)
Business-to-Business (B2B)
This platform of e-commerce includes entire electronic transactions of the products or services executed between the companies. The manufacturer or conventional commerce wholesalers normally fall in the criteria of the B2B business category. It can be said that when the trade is conducted between two or higher two companies, it is considered a B2B business.
Business-to-Customer (B2C)
In B2C e-commerce, businesses sell directly to consumers, often within the retail sector, leveraging the internet’s reach and numerous online platforms. This model offers simplicity and dynamic interaction, though it can vary widely. The internet’s innovation has significantly advanced B2C commerce, enabling virtual stores to offer a wide range of products like software, cars, and shoes. Compared to traditional retail, B2C customers benefit from abundant information, competitive pricing, and efficient order processing and delivery, although personalization may vary.
Consumer-to-Consumer (C2C)
This type of e-commerce model is leveraged through a customer to sell used products or services to other customers through the internet. Here, the activities are performed by a platform offered through a third party.
Consumer-to-Business (C2B)
C2B e-commerce platform is the opposite of the conventional means of trading products. Actually, it is significantly used on projects based on crowdsourcing. Many people create their products or services accessible for purchase for entities looking for precisely such forms of goods or services.
Business-to-Administration (B2A)
This form of e-commerce platform includes entire transactions performed in an online manner between the companies and public administration, such as the regulatory authorities, through assisting the information exchange by central websites.
It offers organisations a platform to bid on government opportunities like tenders, submission of applications, and many more. The extent of this model is presently accelerated, mainly because of the investments made in the direction of e-government.
Consumer-to-Administration (C2A)
This C2A model includes electronic transactions between the customers and public administration. In other words, this e-commerce platform is meant for customers, who might use it to request information or provide feedback about public sectors to the government directly. The following areas are included –
- Distance learning
- Submission of tax returns
- Looking for appointments, payment of health services, and many more.
Working of e-commerce
E-commerce is mainly powered through the internet. Consumers access online stores to browse through and place orders for goods or services through their devices. As the customer places the order, information is received by the server by the web browser of customers.
Data in relation to the order would be relayed to a central computer recognised as the order manager. Then, it would be forwarded to databases engaged in managing the inventory level, a system engaged in managing payment information. Ultimately, the circle returned to the order manager. After the order validation, a notification is provided by the order manager to the store’s web server. It would show a message reflecting the consumer that their order has been placed successfully.
Benefits of e-commerce
There are several advantages of e-commerce platforms. One of this platform’s key advantages is reaching the worldwide market without making a significant financial investment. The restrictions of this business are not explained geographically, which permits customers to make a worldwide choice, avail the essential details and compare the offers from all the probable suppliers notwithstanding their locations.
By permitting direct discussion with the ultimate customer, e-commerce supports the shortening of the product distribution chain, even the elimination of it fully. In this way, a direct channel between the manufacturer or provider of services and the ultimate consumer is created, supporting them to provide goods and services per the suitability of individual preferences of the target audience.
With the help of e-commerce mediums, close relationships between suppliers and consumers could be created, consequently supporting enhanced productivity and effectiveness for organisations. It also provides benefits to consumers with better and excellent service quality, assisting in higher proximity and more productive pre and post-sales support. The e-commerce platforms also enable consumers to make shopping 24*7 days.
Cost reduction is another major benefit usually connected with e-commerce. The more trivial a specific organisational procedure is, the higher the probability of its success, assisting in a greater reduction of transaction expenses and, undoubtedly, of the prices levied to consumers.
Drawbacks of e-commerce
The following are the main drawbacks of e-commerce business platform –
- In such forms of platforms, there is major dependence on information and communication technologies
- There are not any adequate rules and regulations concerning the e-commerce platform that the government of India has approved
- The culture in the market is unlike e-commerce, as consumers cannot touch the products. It can be said that e-commerce platforms could feel impersonal. Therefore, there is inadequate warmth of an interpersonal connection that is significant for several products. This inadequacy of personal touch could be a drawback of several forms of business
- There is also insecurity in the performance of the transaction through the internet. Some consumers’ biggest concerns while using e-commerce platforms are credit card theft, identity theft, and others
- Sometimes, users may also lose privacy
- The start-up expenses of the e-commerce portal are significantly high. The hardware and software establishments, workers’ training expenses, and continuous maintenance are all costly
- There could also be the presence of fulfilment issues. Even after placing orders, there could be issues with the delivery of a product, shipping, and others. It assists towards dissatisfaction among consumers.
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Conclusion
E-commerce business is purchasing and selling products and services or transferring funds or data over the internet. Some common forms of e-commerce are B2B, B2C, C2B, C2C, and others. In the current environment, e-commerce platforms have increased significantly because of their numerous advantages, such as global reach, easy accessibility, lesser cost, availability, speed of access, and many more. Hope this blog regarding E-commerce and its types was helpful.
You can also expand your business through e-commerce platforms. The team of Vakilsearch is engaged in providing detailed information regarding the same. So don’t wait and connect with us today.
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