E-commerce

            

ECOMMERCE

There was a time when mankind was doing business in exchanging goods with goods called the barter system. In this system, both parties brought their products/material to each other and agreed to exchange on some weightage. But with the advent of money, this system was eradicated. Then people started their businesses in exchange for money. It revolutionized the world and provided ease in doing business. In this system, one can simply put some notes in his pocket and can buy anything from the bazaar according to his desire. This is also called the traditional business style. From the last decade, another type of business gives great competition to a traditional business style named itself E-business or E-commerce. In this system, you simply open up your laptop or pick up your mobile phone and order anything from any corner of the world through the internet. 

            E-Commerce has six types of business models.

Types of E-COMMERCE

1. B2B (Business to Business):

In this e-commerce business model, generally, buyers and sellers are both companies. One sells its goods and the other resell goods to end-users via digital means. Sometimes, the end-user is the buyer but in most cases, another company buys goods and sells them to end-users. 

2.    B2C (Business to Consumer):

In this business model, the relationship between the seller and the final consumer is established. Such a relationship is more dynamic and easy, but also more sporadic or discontinued. With the advent of the internet and e-commerce, this model got attention in the world like jungle fire and there are many online malls and stores e.g. Amazon, Flipkart, etc. which sell goods like shoes, books, computers, cosmetics, and many more. People felt it easier to buy things as compared to traditional business style as you can buy things on cheaper things without jeopardizing as well as quick order placement and delivery. Before placing an order to the seller, the buyer got much information about the product by reading content available on the web about the product. 

3.  C2C (consumer to consumer):

In this model of E-Commerce, a consumer sells his used goods or services to other consumers using digital means. These transactions are usually done on the platforms provided by a third party like Olx, eBay, or quicker, etc.

4. C2B (Consumer to Business):

This model is a reversal of B2C (business to consumer). It provides an opportunity to consumers to sell their goods/services to different companies. It is a crowdsourcing-based project, in which a group of different people bid for a project or order placed nature of which may be logo design, photography, images, media, and design elements by the company. 

Upwork and Fiverr are the innovators in this model by helping different companies hire freelancers. 

This platform empowers the consumers in the price of their goods/services. Recent innovators actively used this model of e-commerce to connect companies with social media influencers to market their products.

5. B2A (Business to Administrator):

This kind of model encompasses all electronic trade happening between companies and public administration i.e. government by enabling the exchange of trade via central websites. It involves a vast variety of services like social security, land record, revenue record handling, employment, and legal documentation, etc. The scope of this model has been

enhanced in recent years by investments made by e-government.

6. C2A (Consumer to Administration):

In this e-commerce model, all electronic transactions happening between public administration and consumers are encompassed. 

Examples of such models are as following:

·         Education

·         Tax filing

·         Health

·         Social security

            In both models C2A and B2A, the government provides necessary services to citizens by modern communication ways and technology to enhance efficiency and easy stability.

 

Why E-Commerce:

When we have a traditional method of business, in which we simply walk towards the market and buy goods or services, one thinks, why are we adopting e-commerce nowadays?

The main advantage of e-commerce over the traditional business, one can easily access the global market without making large investments. It offers zero geographical limits. You can choose any product around the globe, compare it with other suppliers regardless of their location and place an order from any corner of the world.

E-commerce shortens the distance between supplier and consumer resulting in improvement in product quality and competitiveness for companies. Stores from all over the world are virtually open 24/7. 

Fair price or cost reduction is another advantage of e-commerce. The more trivial the process of business is, the more are the chances of business success, providing a significant reduction in transactional costs and hence reduced prices will be charged to customers. 

So far, we have discussed e-commerce, its different types, and the reasons behind the advancement of e-commerce nowadays. One can easily understand and make up his mind for quick promotion of his business or getting goods or services at a cheaper rate and better quality compared with traditional markets.