E-commerce

E-commerce or electronic commerce is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. These business transactions occur either as business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C) or consumer-to-business (C2B).

History

The concept of e-commerce was first introduced in the 1960s via an electronic data interchange (EDI) on value-added networks (VANs). The medium grew with the increased availability of internet access and the advent of popular online sellers in the 1990s and early 2000s. Amazon began operating as a book-shipping business in Jeff Bezos' garage in 1995. EBay, which enables consumers to sell to each other online, introduced online auctions in 1995 and exploded with the 1997 Beanie Babies frenzy.

Types of E-commerce Models

There are four main types of e-commerce models that can describe almost every transaction that takes place between consumers and businesses.

1. Business to Consumer (B2C): When a business sells a good or service to an individual consumer (e.g. You buy a pair of shoes from an online retailer).

2. Business to Business (B2B): When a business sells a good or service to another business (e.g. A business sells software-as-a-service for other businesses to use)

3. Consumer to Consumer (C2C): When a consumer sells a good or service to another consumer (e.g. You sell your old furniture on eBay to another consumer).

4. Consumer to Business (C2B): When a consumer sells their own products or services to a business or organization (e.g. An influencer offers exposure to their online audience in exchange for a fee, or a photographer licenses their photo for a business to use).

Advantages and Disadvantages of E-commerce

E-commerce offers many ways retailers can reach consumers and conduct business without the need for a brick-and-mortar storefront. Today, it's almost economic suicide for any retailer not to be able to sell online. However, e-commerce also has its disadvantages.

Advantages

• Faster buying process
• Store and product listing creation
• Cost reduction
• Affordable advertising and marketing
• Flexibility for customers
• No reach limitations

Disadvantages

• Limited customer service
• Inconvenient returns
• Impersonal
• Need for internet access

Future of E-commerce

The future of e-commerce is bright and growth will come from mobile platforms, personalization, social media analytics, omni-channel service, and sharing economy.

E-commerce Resources
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