- Written by Kurt Forrester
- on September 19, 2017
Understanding the nitty gritty of E-commerce!
The world, as we know it, has grown to become one global village thanks to the advent of the internet. Nowadays, a lot of the things we do are often online. We use the internet to meet new people, work, learn and most importantly, conduct business just to mention a few.
Aside from social media, e-commerce forms one of the largest industries on the internet. Every day, there are hundreds of millions of dollars that exchange hands as a result of online business transactions; part of the reasons why the electronic commerce industry is booming!
What is E-commerce?
In the simplest terms, e-commerce can be defined as the process of carrying out business activities – buying and selling of products and services – on the internet. For example, buying or selling products on sites like eBay, Alibaba and Amazon.
Electronic commerce is a broad field since any business activity carried out electronically is considered e-commerce. But it can be categorized into three major types:
Business to Consumer / B2C – This is the most common type of e-commerce because it involves business transactions between a business and a customer. For example, buying a product from an online retail shop.
Business to Business / B2B – This happens when both parties, the buyer and the seller, are businesses. E.g., Manufacturers to wholesalers or retailers.
Consumer to Consumer / C2C – it involves consumers buying and selling products from other consumers. E.g., online auctions.
What Qualifies to be Termed as an E-commerce Activity?
* Electronic Payments,
* Online Shopping,
* Internet Banking,
* Online Auctions,
* Online Ticket Sales and so on.
What are the Benefits of E-commerce?
It’s safe to say e-commerce offers all parties, the sellers as well as the buyers, numerous benefits. Some of them include:
1. Reduced Costs – With e-commerce, sellers don’t necessarily have to own a store; all they need is some storage space and an online shop. On the other hand, buyers enjoy access to a wide range of products at competitive prices. Plus, they don’t have to travel to the shop to get these products due to door to door delivery.
2. More Access – Having an e-commerce business means that you have access to a broader target group as compared to having a local shop. You can sell your products to people living half-way across the world with ease. Buyers also get to choose from a myriad of stores and products to find the best deals.
3. Flexibility – because of the ability to buy and sell products/services to anyone from anywhere in the world.
4. Ease and Convenience – E-commerce can be conducted from the comfort of your home regardless of whether you are buying or selling.
5. Access to Information – Sellers get access to information about buyer preferences through search analytics enabling them to produce better and more tailored products to their consumer groups. Customers gain access to reviews and ratings posted by fellow consumers to help them understand more about the quality and nature of the product before making a purchase.
Evidently, e-commerce forms a vital part of our day to day lives. It has made it easy, convenient and affordable to conduct business on a daily basis.