E-commerce: Introduction
E-commerce or Electronic commerce is the process of selling goods and services over the Internet. This process starts when a customer knows about a product and continues to purchase it through the internet. Data of the customers play a major role in E-commerce’s success. For example, following up with a customer after they have placed an item in an online shopping cart but didn’t complete the transaction can significantly increase the probability of making the sale. In 1990’s the retailers found a new way to progress their business, that is through the Internet. For example, In the early 1990s Amazon was start up its brand just to sell books, but today it has turned into a multibillion-dollar industry. This sort of intensification can be achieved by e-commerce with its business models and also through digital marketing.
The most common type of E-commerce business models:
Business-to-business(B2B)
In a B2B business model, a business sells its product or service to another business. Sometimes the buyer is the end user, but often the buyer resells to another consumer. Generally, B2B transactions have longer sales cycles and recurring purchases. Recently B2B innovators have made a unique place themselves by replacing catalogs and order sheets with e-commerce storefronts and also improved targets in the market.
Business–to–consumer(B2C)
B2C business is the process of selling products or services directly to the customer. When an individual buys anything from an online store as a consumer, that transaction comes under the B2C business model, that thing can be anything like household supplies, wardrobe needs, entertaining tools, and much more. The sale cycle is shorter when compared to B2B business model. As the sale cycle is shorter it spends less in marketing while having a lower average order value and fewer recurring order when comparing to B2B business models. B2C innovators have influenced technology like mobile apps, own-page advertisements, and more.
Consumer–to–Consumer(C2C)
C2C is the process of exchanging products or services among consumers. EBay, Olx, is the popular platform for C2C transactions. Before the existence of the internet people would participate in C2C commerce at a flea market. The flea market is an outdoor market where people sell their second-hand items. Now this C2C business model may facilitate by a third-party site that helps to reach another consumer and also to maintain the details of each consumer confidentially. The main benefit of the C2C business model is its self-propelled growth by motivating buyers and sellers but it could face a key challenge in quality control and technology maintenance.
Consumer-to-Business (C2B)
C2B business allows individuals to sell goods and services to companies. In this model, a site might enable the customer to post the work they want to be completed. In simple words, when a consumer creates value for the business, that is said to be C2B commerce. Creating value can take many forms. For instance, it can be as simple as a consumer leaving a review for work in business or a certain website purchasing something from freelancers.
Business-to-Government(B2G)
B2G is an e-commerce model where a business sells its products to government entities or public administrations. Usually, a business makes contracts with a public organization to carry out a mandated service. For instance, an It firm replies to a proposal to manage a city’s completer hardware, or a private armory organization contracts with the government for defense purposes.
Consumer-to-Government(C2G)
Any time when a consumer turn money over to a public agency using the internet is said to be Consumer-to-Government e-commerce. This model includes paying taxes online and purchasing goods from a government agency. For instance, paying the toll on highways. Here the consumer uses the public service and can pay for the service. Also, C2G e-commerce includes making online payments through the government website for things like electricity, health insurance, and taxes.
Key benefits of e-commerce:
E-commerce paves a better path for the future as it bridges the gap between companies and consumers. Especially during the pandemic E-commerce plays a very important role as the world has faced many challenges like social distancing, scarcity in cash flow, not being able to get out of the home, and more. That was the point where e-commerce stepped into its lavish growth. Some of the key benefits are as follows:
Cost-effective: The huge expense of running a retail business is having a physical store. It includes money spent on rent, utilities, and more such needs. But in E-commerce, there is no money wasted like in the physical store.
Flexibility: E-commerce offers flexibility between companies and the consumer. Consumers can shop at any time and also from anywhere.
Engaging with consumers: E-commerce helps the consumer to be in touch with companies and vice versa. For instance, if the consumer has a query he can ask in the queries section where the firm could reply to consumer doubts. If the consumer was not available at the shipment address, he can intimate the person who delivers the product, so that the consumer could get the product where he was then.
Wider range: First of all, there is no geographical limit for an E-commerce store, unlike the physical store. There will be a wide variety and wide range of products more than the consumer needs.
Reviews & Ratings: Customers are encouraged to leave their feedback on the online store’s website to learn about customer satisfaction and any issues that they are having when using the product or the service. These reviews which are available on the website help the customer to choose the products wisely. This helps to retain the standard of the business.