Try to think and go back in time. How did you shop a few years ago? How did you buy new shoes, home appliances, a mobile phone or even ordinary food? – Today, everything is online and delivered directly to our door without us having to leave our home. Not satisfied? Just contact online customer service or return purchased products without any charge. The course of shopping has changed radically over the years and allows customers to shop unlimited 24/7.
What is e-commerce?
When we talk about e-commerce in general, we talk about an online transaction between a customer and a client. Every time someone sells or buys products and services online, it is included in e-commerce. Also included are fees such as internet banking, auctions, etc. We can be even more specific and divide e-commerce into four basic categories.
Four major types of e-commerce
- B2C – Business to Consumer
- B2B – Business to Business
- C2B – Consumer to Business
- C2C – Consumer to Consumer
1. Business to Consumer
Business to Consumer type of e-commerce is the most popular and most common of the models in the industry. It is the sale of products or services to the final consumer. Let’s take this as an example – Netflix sells its services to viewers, where the entire process and transactions occur online. The customer can get an overview of cheaper products and services and finally decide for himself with the certainty that he will get the best shipping conditions and customer service.
2. Business to Business
Business to Business e-commerce means when sales and purchases of products and services are made online between two firms. Even though B2B has a smaller share of customers than B2C, in the end, all transactions and sales are much higher in B2B than in B2C transactions.
3. Consumer to Business
Nowadays, we can easily show that this model is an example of how businesses hire influencers to market their services and products. Influencers (consumers) can set conditions, and then it is up to individual companies at what price they want to get them for a campaign.
4. Consumer to Consumer
A great example of this model of e-commerce is eBay. eBay has “caught” people for a long time and serves as a third party in selling products and services among consumers themselves. We can also include Facebook Market here, where people can buy things literally from neighbours.
Advantages of e-commerce
- buying/selling process 24/7
- reach of customers, even internationally
- easy to create an e-commerce business
- easy access to customer’s data
Disadvantages of e-commerce
- lots of bad sites & online sellers = waste of customer’s money, stressful online shopping
- prone to attack as hackers want customers data, payment methods
- high competition
- low interaction with customers – customer loyalty
Getting started with e-commerce is easy and accessible for everyone. In this post, we answered the question What is e-commerce, advantages & disadvantages, and four main types according to whom the products and services are sold. If you are still hesitant and have any questions, leave us a message, and we will be happy to help you 🙂