What is e-commerce Business?

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What is e-commerce Business?

What is e-commerce Business? e-commerce, also known as e-commerce or online commerce, refers to the sale and purchase of goods or services using the Internet, and the transfer of funds and data to carry out these transactions. e-commerce is often used to refer to the sale of physical products online, but it can also describe any type of business transaction that is facilitated online.

While e-business refers to all aspects of running an internet business, e-commerce specifically refers to the treatment of goods and services.

Ecommerce history begins with their first online sale: On August 11, 1994, a man sold a CD by band Sting to his friend through his website NetMarket, an American retail platform. This is the first example of a consumer purchasing a product from a company through the World Wide Web – or “e-commerce” as we commonly know it today.

Since then, e-commerce has evolved to facilitate product discovery and purchase through retailers and online markets. All independent freelancers, small businesses, and large corporations have benefited from e-commerce, which enables them to sell their goods and services on a scale that was not possible with the traditional offline retailers.

Global retail e-commerce sales are expected to reach $ 27 trillion by 2020.

Types of e-commerce models

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

Consumer Business (B2C):

When a company sells a good or service to an individual consumer (for example, you buy a pair of shoes from an online retailer).

Business to Business (B2B):

When a company sells a good or service to another company (for example, a company sells software as a service for other companies to use)

Consumer to Consumer (C2C):

When a consumer sells a good or service to another consumer (for example, you sell your old furniture on eBay to another consumer).

Business Consumer (C2B):

When a consumer sells his or her own products or services to a company or organization (for example, the influencer shows his online exposure to him for a fee or the photographer cheapens his image for business use).

Examples of e-commerce

E-commerce can take a variety of forms that involve different transaction relationships between companies and consumers, as well as various things that are exchanged as part of these transactions.

1. Retail:
Selling a product by a company directly to a customer without any intermediary.

2. Wholesale:
Wholesale products, often to a retailer, selling them directly to consumers.

3. Dropshipping:
A product that is manufactured and shipped to the consumer is sold by a third party.

4. Crowdfunding:
Collecting funds from consumers before the product becomes available in order to increase the capital needed to start operating in the market.

5. Subscription:
Automatic repeated purchase of a product or service regularly until the subscriber chooses to cancel.

6. Physical products:
Any tangible good that requires inventory replenishment and physical shipment to customers when sales are made.

7. Digital products:
Digital goods, templates, training courses or media that can be downloaded for consumption or licensed for use.

8. Services:
A skill or set of skills provided in exchange for compensation. Service provider time can be purchased for a fee.

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