Today, running an online business is a natural part of retailers world, and there are many resources mentioning eCommerce with all its attributes. But do you know what does exactly eCommerce mean?
What is an eCommerce?
eCommerce, also known as electronic commerce, is trading in products or services, but also making transactions using computer networks or any electronic means. So in short, the eCommerce term is connected with buying and selling goods over the internet.
Regarding performing the transaction, eCommerce is connected with technologies, such as e-payments, mobile commerce, e-marketing, automated data analysis systems, electronic data interchange, supply chain management, inventory management systems.
eCommerce can be thought of as an advanced medium of transacting businesses and it’s now very common. Almost every product or service can make use of electronic commerce as their form of trading, from financial services and tickets selling to online products selling.
Categories of eCommerce
If you run an online business, you definitely know it’s not easy to sell something, especially when you’re just starting out.
Have you ever wondered why the visitors on your site are simply scrolling and walking away without making any purchases? What do you think might be causing this?
eCommerce is usually classified into four categories, depending on the transaction’s nature. See its characteristics below.
Business to business (B2B): this is a type of eCommerce transaction that involves two business bodies or companies carrying out the business transaction between each other. Like business between manufacturer and wholesaler or wholesalers selling to retailers.
Consumer to business (C2B): this category of electronic commerce transaction is rapidly growing. It can be defined as a form of the transaction whereby consumer sells goods or services to a company. This can involve companies bidding on a consumer’s product or services offered e.g. blogging services.
Business to Consumer (B2C): that’s when businesses are selling their products or services to the public. In short, this is a type of transaction between retailers and their customers.
Consumer to consumer (C2C): this form of transaction is usually made through online forums, classified ads, or marketplace websites that allow customers to sell their items online. The best example here can be services such as Craigslist.
The major benefits of eCommerce
Why people choose the internet to sell and buy goods? Here are some electronic commerce benefits, which are highlighted mostly.
- No time limitation. eCommerce transaction is a 24/7 experience, so anyone can buy wherever he/she wants.
- No geographical constraints. A lot of eCommerce businesses can sell or offer services to the customers, regardless of their geographical location.
- Price comparison. It’s easy for online shoppers to compare the product or service’s prices. It can be done in minutes, so customers can make the decisions much faster.
- The possibility of adding detailed product description. The seller can easily add as many details as possible to present the product in the best way. And it comes with the benefits for online customers, who can get more information about the product they consider buying.
- Wide choice. Online shoppers have the possibility to choose the item they are looking for from many retailers from the whole world.
- Convenience. That’s one of the most popular reasons why people buy online. It’s simple, fast and shopping can be done without even stepping out of the home.
What Does eCommerce Mean?