Ecommerce For beginners.
What is Ecommerce?
Ecommerce, also referred to as electronic commerce or internet commerce, refers to the buying and selling of products or services using the web, and also the transfer of cash and data to execute these transactions. Ecommerce is commonly used to talk about the sale of physical products online, but it may also describe any type of commercial transaction that’s facilitated through the web.
Types of Ecommerce Models
There are four main kinds of eCommerce models that could describe almost every transaction that takes place between consumers and businesses.
1. Business to Consumer (B2C):
When a business sells an honest or service to a private consumer (e.g. You buy a pair of shoes from a web retailer).
2. Business to Business (B2B):
When a business sells goods or service to a different business (e.g. A business sells software-as-a-service for other businesses to use).
3. Consumer to Consumer (C2C):
When a consumer sells goods or service to a different consumer (e.g. You sell your old furniture on eBay to a different consumer).
4. Consumer to Business (C2B):
When a consumer sells their own products or services to a business or organization (e.g. An influencer offers exposure to their online audience in exchange for a fee, or a photographer licenses their photo for a business to use).
Examples of Ecommerce
Ecommerce can be done in various forms involving different transactional relationships between businesses and consumers, as well as different objects being exchanged as a part of these transactions.
The sale of a product by a business to a customer without an intermediary.
The sale of products in bulk, often to a retailer that then sells them to consumers.
The sale of a product, which is manufactured and shipped to the buyer by a 3rd party.
The collection of cash from consumers beforehand of a product being available so as to boost the startup capital necessary to bring it to consumers.
The automatic recurring purchase of a product or service on regular basis until the subscriber chooses to cancel.
6. Physical products:
Any tangible good that needs inventory to be replenished and orders to be physically shipped to customers as sales are made.
7. Digital products:
Downloadable digital goods, templates, and courses, or media that has to be purchased for consumption or licensed to be used.
A skill or set of skills provided in exchange for compensation. The service provider’s time is purchased for a fee.