E-Commerce is the area mostly known to people to shop online. People use it frequently to buy new items for the home, family, or themselves. And some use it to sell their products.
However, there’s more to learn about E-Commerce. E-Commerce (electronic/online commerce) is an area used in various fields of business, such as wholesale, retail, and manufacturing. E-Commerce is also mostly used as online shopping for manufacturers to consumers.
Ecommerce in another definition refers to the sharing of business information, the maintenance of business relationships. And the conduct of business transactions with the help of computers connected to a telecommunications network and without the use of paper documents.
In this post, we will learn more about the application of E-Commerce.
Classification of E-Commerce by its application:
Electronic markets – here the purchaser is presented with a range of products and services available on a market so they can compare prices and make the purchase.
Electronic data interchange – this is a standardized system in which computers communicate with each other without printed documents, such as order forms or invoices; it eliminates delays and errors otherwise seen when handling paper.
Internet Commerce – the one we know the most; the medium used to advertise and sell countless products and services; the purchased goods are then shipped to the consumer.
There are six major E-commerce types
Business to Consumer
Business-to-consumer(B2C) is described as a direct transaction between an enterprise and an end consumer. A customer can view and choose the product displayed on the website and buy products/services as approved by the company. They ‘re known as online retailers that sell online products and services.
Business to Business
Business-to – business (B2B) is a circumstance or transaction that has been negotiated between two firms in order to make a commercial agreement with each other. Simply, it can describe trade with other companies doing business. B2B transactions are completely different from other types of e-commerce such as selling products directly to other businesses, rather than selling products to consumers.
Business to Administration
The e-government is also known as Business-to-Administration (B2A). It is a transaction processed between corporations and the public sector. B2A services include legal documents, employment, financial services and more. The transaction is fully controlled by the government and only provides the business companies with a medium to submit application forms to the government.
Customer to Customer
Consumer-to -consumer transactions (C2C) processed between consumers. Consumer-to-consumer has made buying, selling, and trade a convenient way for the people who come together. eBay(online consumer auction site), newspaper (online classifieds), craigslist are a prominent example of C2C transaction. C2C ‘s main aim is to enable relationships between buyers and sellers alike. Their business model is known as peer-to-peer.
Let’s take a look at the most common E-Commerce applications:
Retail and Wholesale
In this field, e-commerce has many applications. E-retailing is essentially a B2C and in some cases a B2B sale of goods and services through online stores designed with virtual shopping carts and electronic catalogs.
A subset of retail e-commerce is m-commerce, or mobile trade, whereby a consumer buys goods and services using their mobile device through the retailer’s mobile-optimized site.
These retailers use the e-payment method: they accept payment through credit or debit cards, online wallets, or internet banking, without paper invoices or receipts being printed out.
This refers to collecting data on consumer behaviors, preferences, needs, patterns of buying, and so on. It helps marketing activities such as price-fixing, negotiating, enhancing product features, and building strong customer relationships as these data can be leveraged to provide a tailor-made and enhanced buying experience for customers.
Banks and other financial institutions make considerable use of e-commerce. Customers can check the balance of the account, move money to other accounts held by them or others, pay bills through internet banking, pay insurance premiums, etc. Individuals may also conduct online stock trading and obtain stock information for trading from websites displaying company news, charts, performance reports and analyst ratings.
Supply chain operations also use e-commerce; usually, a few businesses form a group and create an electronic exchange and facilitate the purchase and sale of goods, exchange of market information, back-office information such as inventory control, etc. This allows for the smooth flow of raw materials and finished products between the member companies and also with other companies.
This is something almost every one of us has done at some time – book hotels, holidays, airline tickets, travel insurance, etc. These bookings and reservations are made possible through an internet booking engine or IBE. Aviation, tour operations, and the hotel industry make maximum use of this.
This refers to digital book publishing, magazines, catalogs and the development of digital libraries.
Online advertising uses the internet to deliver promotional material to consumers; it involves a publisher and an advertiser. The advertiser provides the ads, and the publisher integrates ads into online content. Often there are creative agencies that create the ad and even help in the placement. Different types of ads include banner ads, social media ads, search engine marketing, retargeting, pop-up ads, and so on.
Online auctions put together various people from different geographic locations and allow products to be exchanged at discounted rates, implemented using e-commerce technologies. It allows more people to become involved in auctions. Another example of an auction is the bidding on an airline website for seats – window seats, and those on the front with more legroom are usually offered at a premium, depending on how much a passenger is willing to pay.
E-commerce is all around us today, and as an entrepreneur, if you want to expand your markets, get more customers and boost your profitability, you should also get into this realm. Are you looking to establish your online presence with a reliable and reputable e-commerce development company? We have over a decade and a half of experience at IPIX Tech Services helping startups, small and medium-sized companies achieve their business goals by online marketing. For more details please contact us!
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