E-commerce is a popular term for electronic commerce or even internet commerce. It is the meeting of buyers and sellers on the internet. This involves the transaction of goods and services, the transfer of funds and the exchange of data.
Types of E-Commerce Models:
1. Business to Business
Here the companies are doing business with each other. The final consumer is not involved. So the online transactions only involve the manufacturers, wholesalers, retailers, etc.
2. Business to Consumer
Here the company will sell its goods and/or services directly to the consumer. The consumer can browse their websites and look at products, pictures, read reviews. Then they place their order and the company ships the goods directly to them. Popular examples are Amazon, Flipkart, Jabong, etc.
3. Consumer to Consumer
Consumer to consumer, where the consumers are in direct contact with each other. No company is involved. It helps people sell their personal goods and assets directly to an interested party. Usually, goods traded are cars, bikes, electronics, etc. OLX, Quikr, etc follow this model.
4. Consumer to Business
This is the reverse of B2C, it is a consumer to business. So the consumer provides a good or some service to the company. Say for example an IT freelancer who demos and sells his software to a company. This would be a C2B transaction.
Examples of E-Commerce
Advantages of E-Commerce
- E-commerce provides sellers with a global reach.
- Electronic commerce will substantially lower the transaction cost.
- It also saves time, energy and effort for both the consumers and the company.
- A customer can shop 24×7.
- No intermediaries involved.
Disadvantages of E-Commerce
- The start-up costs of the e-commerce portal are very high. T
- The e-commerce industry has a high risk of failure.
- At times, e-commerce can feel impersonal. This lack of a personal touch can be a disadvantage for many types of services and products like interior designing or the jewelry business.
- Security is another area of concern (information of the customers).
- Then there are also fulfillment problems. Even after the order is placed there can be problems with shipping, delivery, mix-ups etc.