Ecommerce, commercial activity via electronic methods. You can also call it electronic commerce, web trade, internet commerce or online business, also known as the selling & purchasing of products, merchandises, services or various other goods through the web, and the fund and data required for these transactions are also done via electronic fund and data transfer methods.
Ecommerce is mainly known as the selling of digital & physical items on the web, you can also refer it as any commercial activity in which buying, selling or exchange is encouraged with the help of the internet can be called as Ecommerce.
Though e-commerce we mainly mean a business where buying, selling or exchange of services and items takes place whether it any physical product like books or any digital products like eBooks.
The historical backdrop of Ecommerce starts in the year 1994, in America, where a Youngman makes the first online sale of the world. An American Youngman, Dan Kohn sold a compact disc on August 11 in the year 1994 via NetMarket, his online retail website.
This was the first-ever case of buyers buying an item from an online business through the internet known as the World Wide Web at that time and today we call it an “Ecommerce”, the whole world is running on it.
From that point of time, Ecommerce has developed itself so many folds. In past years many improvements and developments have been done to make simpler for buyers and sellers.
It has been super easier for small businesses, freelancers and online sellers to sell their products not only in their geographical region but also beyond that.
Ecommerce has helped the online sellers to a large extent in expanding their boundaries of goods and services beyond the limit, which was not possible with the traditional way of retail trading.
If we talk in today’s scenario, the retail Ecommerce around the world is projected to be $27 trillion industry by the end of 2020.
Classification of Ecommerce Models
Mainly There are four Classifications of Ecommerce models that contain all the exchanges or transactions that happen between Business organizations and customers.
1. Business to Consumer (B2C):
At this point when a business offers a good or service an individual customer (for example, you purchase a mobile phone from an online shop like amazon).
2. Business to Business (B2B):
At this point when a business organization offers a decent good or service to another business organization (for example, A business organization sells mobile laptops to different organizations to utilize like Amazon business).
3. Consumer to consumer (C2C):
At this point when a customer is selling a good or service to another customer. (for example, you sell your old car or furniture on OLX to another customer).
4. Consumer to Business (C2B):
At this point when a customer offers his goods or services to a business or a Corporation (for example An Instagram influencer advertise any product or service in return for a charged fee to his audience).
Simple illustrations of Ecommerce
Ecommerce could happen in many forms and can have various diversified transactional relationships between buyers and sellers. Any kind of exchange or trade that happened between the above two parties would be part of Ecommerce.
In the retail scenario, the selling of any goods or services by a business organization directly to a buyer who is a consumer with no mediator.
In the wholesale scenario, the selling of the goods is in large quantity, frequently to a retailer, who later sells it to a buyer who is a consumer.
In the Dropshipping scenario, the product is sold by an individual to a consumer but the product is manufactured & dispatched is handled by an outsider.
In Crowdfunding, the pre-consumer base of a product or targeted people of the same interest is used for the collection of money prior to the availability of products or to raise any start-up.
In subscription, the consumer is charged on a repeated basis for the goods or services he has chosen until the consumer decides to drop.
6. Physical goods:
In this, the inventory is needed to be maintained as the goods are needed to be shipped to the consumer after the sale is closed.
7. Digital items & services:
It basically covers good related to Information technology, where products can be downloaded from the web when the sale is done. No inventory or shipping is needed.
It covers all skill related transactions where a skilled full person provides his skill in exchange for money. We can also consider it as a service provider charge on the basis of his service given to the consumer.
In this any business provider has provided any product or assets to the consumer utilization for a particular time frame and will charge a fee for that depending on the basis of consumer requirement.
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