WHAT IS E COMMERCE?

What Is Ecommerce

eCommerce is the online exchange of goods and services over the internet. It involves online transactions
between businesses (B2B), businesses and consumers (B2C) as well as between consumers and
consumers (C2C). eCommerce encompasses a wide range of activities, including electronic business,
online shopping, online marketplaces, electronic payments, online banking and online auctions.
eCommerce is an integral part of the modern global economy. Over the past couple of decades, it has
transformed both the way we shop and the way we do business. In fact, eCommerce is on track to take
over traditional retail sales altogether. According to Nasdaq, by 2040, eCommerce could facilitate as
much as 95% of the retail sales.

If you’re brand new to eCommerce, you’ve come to the right place. This article will answer all of your
questions about the world of online retail.
➢ What is an eCommerce website?
If you want to succeed in your endeavor, it’s crucial to know how to create a website that’s tailor-made for
eCommerce. Simply put, an eCommerce website allows your business to sell products and services
online. It’s a digital storefront where your customers can browse, select and purchase items (see
eCommerce website development). A typical eCommerce website includes features, such as:
➢ A desktop and mobile interface
➢ A product catalog with product descriptions and images
➢ A shopping cart software system for customers to keep track of the items that they want to
purchase
➢ A checkout process where customers can enter their shipping and billing information
➢ Secure website security features to ensure the protection of your data and that of your customers
➢ High uptime and site reliability to handle large numbers of traffic to an ecommerce site – Wix
sites have 99.98% uptime, for example
➢ Secure payment processing
➢ Order tracking and customer support resources

Types of Ecommerce Businesses

Business to consumer (B2C)

Business to consumer is one of the most common types of eCommerce models. B2C businesses sell
goods and services directly to the end customer, and can include anything from physical products to
online services. Think: Amazon, Nike or an online tutoring business.

Business to business (B2B)

Business-to-business models are also very common, and refer to companies that provide goods or services
for other businesses. B2B eCommerce covers a wide range of businesses, including wholesalers, raw
material manufacturers and service providers.

Consumer to consumer (C2C)

Any transaction done between two people, rather than business entities, is considered consumer to
consumer. This type of business model includes transactions done on platforms such as eBay or
Craigslist, or on social media marketplaces like Facebook Marketplace.

Consumer to business (C2B)

Consumer to business covers services provided by individuals, for businesses. This model is often used to
include freelancers and other small service providers. A common form of C2B is when a business
purchases stock images, videos or music created by individuals.

Business to government (B2G)

Business to government provides products and services for the federal or local government to purchase.
These include a wide range of sectors like cyber security, waste management, urban planning, etc.

Government to business (G2B)

Government-to-business transactions reverse the B2G model. This model is often used to refer to
information that companies can purchase access to, such as blueprints or legal files.

➢ Examples of eCommerce business models
There are several types of common eCommerce businesses that operate under the structures listed above.
A useful way of breaking them down is by explaining the various types of products or services they offer.

• • Print on demand (POD)

• • White labeling

• • Private labeling

• • Dropshipping
    Types of eCommerce products

• • Physical products

• • Digital products
    
    ➢ What makes an eCommerce business successful?
    All in all, there are many factors that contribute to the success of an eCommerce business. Here are some
    of the most important:
    ➢ A strong product offering: Your products should be high-quality, unique and in demand. You
    should also offer a variety of products that appeal to a wide range of customers.
    ➢ A well-designed website: Your website should be easy to use and navigate, and it should be
    visually appealing. It should also be mobile-friendly, as more and more people are shopping
    online from their smartphones and tablets.
    ➢ Effective marketing: You need to let people know about your business and your products. You
    can do this through a variety of channels, such as search engine optimization, social media
    marketing and email marketing.
    ➢ Secure payment processing: Customers need to feel confident that their personal and
    financial information is safe when they shop with you. You should use a secure payment
    processor that encrypts customer data.
    ➢ Reliable shipping: Customers expect their orders to be shipped promptly and arrive in good
    condition. Use a reliable shipping carrier that offers tracking information so customers can see
    where their order is at all times.
    ➢ Good customer service: Providing excellent customer service is essential for any business, but
    it’s especially important for eCommerce businesses. You need to be responsive to customer
    inquiries and resolve any problems quickly.
    ➢ Continuous improvement: No business is perfect, and there is always room for improvement.
    You should constantly be looking for ways to improve your business, such as by adding new
    products, improving your website or expanding your marketing efforts