The Best Guide To Understand E-Commerce: Definition, Types, And Trends
Are you looking forward to giving your business an online presence? Or are you just curious to know about e-commerce? Let’s explore and understand e-commerce and its types, all from the basics.
With over 26.6 million e-commerce sites globally today, more and more businesses are looking forward to establishing their online presence. Are you also interested in doing so? But wait! You should know everything about the e-commerce business before proceeding.
Most people miss the opportunity to grow their business, just by following the traditional retail methods. However, e-commerce has the potential to take the business to new heights. Even as someone, eager to know about e-commerce, this blog will be the stepping stone for you. So, let us understand and start our discussion.
What is E-Commerce?
We all are aware of the fact that shopping has evolved over the years. From barter system to coins, and finally to the digital platform. Let us imagine two scenarios.
Your friends are coming to your place. You think of ordering them their favorite food. What are you going to do? Well, simply, you are going to open your phone and order food from popular apps like Zomato or Swiggy.
In the second scenario, you are seeking a new electric appliance for your home. What would you prefer? Visiting a store yourself and then bringing the appliance to your place, or ordering it online and getting it delivered and installed? Well, the second option seems much more convenient and time-saving.
In both these scenarios, there is one common thing. You are getting your products or services delivered to you using an electronic medium. Well, by definition, this exchange of products and services through electronic means is known as e-commerce. Hence, in simple terms, this buying and selling of products using an online means is what is called e-commerce. The websites that enable the buying and selling of these services are known as e-commerce websites.
Different Types of E-Commerce Business
In the sections above, we discussed what e-commerce is. However, there are different types of e-commerce business. What are these? Let us explore it in this section.
Business to Business (B2B)
When we are talking about B2B, here businesses exchange products and services among themselves. It takes place between two or more businesses. An example of this can include a company selling its software and a product to other businesses.
Business to Consumer (B2C)
In B2C businesses, the brand is selling its products or services directly to the consumer. The brands usually do this with the help of a middleman who makes the transaction possible. Many entertainment companies like Netflix that provide subscription-based plans to consumers come under this.
Direct to Consumer (D2C)
Most people believe B2C and D2C to be the same. However, there is some difference between the two. A D2C company will provide services to the consumer directly but without the involvement of the middleman. This is the major difference between both of them. An example of this can be a manufacturer directly selling goods to the consumer.
Consumer to Consumer (C2C)
C2C is simple to understand. Have you ever sold any of your commodities on a platform like OLX? This is a simple example of a C2C business. Here, consumers directly sell their products or services to other consumers using a platform as a medium for transactions.
Consumer to Business (C2B)
In C2B, consumers offer their products and services to companies, and businesses can bid on or purchase these services. We can see that these services are exactly opposite to B2C. Examples include stock photography and freelance writing on platforms like Upwork.
Beyond these, there are also business-to-administration (B2A) and Consumer to Administration (C2A) categories, where local authorities or government entities are the recipients of services or products. Tax filing services are a prime example of this.
What Is The Current Trend of E-Commerce and The Future Prediction?
Can you now imagine your lives without e-commerce? It is pretty hard to do so. Right? E-commerce has become a significant part of our lives. Even the trend today highlights the massive success it has become.
Today, many businesses are looking forward to establishing their presence online. From the rapid inclusion of technology to government-supporting businesses coming online, the winds are in the favor of e-commerce businesses.
Doesn’t your business have an online presence yet? Read: Why Does Your Business Need an E-Commerce Store Now?
Even the future that lies ahead looks promising. Technology such as artificial intelligence, augmented reality, drones, automated vehicles, and more, are making e-commerce more and more effective and convenient for people.
Wrapping Up
E-Commerce has come a long way since its emergence and it will continue to go further. Do you also want your business to harness this power? Choose Zopoxo, your one-stop solution for all your e-commerce needs. We will help you become a profitable e-commerce business. Get in touch today!
