What is an E-commerce business in 2023
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What is an e-commerce business? What is the history of e-commerce, how many types of e-commerce businesses are there, and what are the benefits of e-commerce?
If God has created something unique, it is the human being and the mind that resides in it. The human mind has found what it has asked for.
Science and technology have progressed a lot in this modern era. What seemed impossible to us 15-20 years ago is now in front of us in a successful form.
By the time of the twenty-first century, new inventions took place in mobile, and along with this people understood the world of the web.
The revolution of the Internet in this way, by aggregating the world of the web with the smart form of mobile or computer through the Internet, a new business method was developed, which is named E-Commerce.
What are the benefits of e-commerce?
E-commerce This word is made up of two words E and Commerce. E-commerce This word is a short form of “Electronic Commerce”.
E means Electronic, in this way has a big meaning-Electronic network ie Internet. In this way commerce means business.
Business involves buying and selling any products or services. Thus, E-commerce means buying and selling of goods and services through the Internet.
What is the history of e-commerce?
E-commerce is believed to have started in the 1970s. When the use of Electronic Data Interchange (EDI) was started to share business documents to buy and sell goods.
Then in 1979, an American company, the American National Standards Institute, developed ASC X12 as a universal standard for businesses to share documents through electronic networks.
Through this, business documents such as purchase order invoices were sent electronically. After some time this activity increased and these electronic forms came to be known as web forms.
E-commerce was opened for business activities for the first time in 1991. Since then thousands and millions of people have used it for online buying and selling.
It is impossible to think of the history of e-commerce without the major American companies eBay and Amazon.
Which were among the first Internet companies to introduce electronic transactions. It was because of these companies that there was a revolutionary change in the e-commerce industry.
In today’s era, the use of computers is becoming more and more in every field. After the advent of the Internet, all the business houses have started expanding their business through computers.
This is the biggest advantage of this. With its use, maximum work gets done in less time. And any information can be sent from one place to another anywhere in the whole world with just one click.
This information can be in different formats, such as text, audio, image, graphics, etc.
How many types of e-commerce businesses are there?
There are many types of electronic commerce businesses. generally. In e-commerce, there is an online commercial transaction between a supplier and a client.
Although this idea is a bit broad and in fact e-commerce is divided into six major types and that too with different characteristics. There are 6 types of e-commerce:-
- B2C (Business to Consumer)
- B2B (Business to Business)
- C2C (Consumer to Consumer)
- C2B (Consumer to Business)
- B2A (Business to Administration)
- C2A (Consumer to Administration)
1. B2C (Business to Consumer):
In this business, a business organization sells the product/services directly to the consumer on the Internet.
It is the largest market for e-commerce. In this, the customer can see the product or service directly on the online company’s website.
And you can order it if you like. After the company gets the order information, the company sends the product directly to the customer. For example Amazon, Flipkart, Snapdeal, etc.
2. C2C (Consumer to Consumer):
In this type of business, a consumer sells a product or service made or made by him to another consumer on the Internet.
In this, a consumer sells his home furnishings – such as his old TV, car, bike, his property to other consumers through third parties on the Internet such as OLX, and Car-Dekho.
Generally, these third parties provide online platforms to buy or sell goods. And charge the consumer for the service or sometimes provide service at a discount or free of cost.
3. C2B (Consumer-to-Business):
It is an interesting and reverse process from the traditional understanding of exchanging goods.
In C2B, the customer sells his product or service to the company. For example, if you are a content writer, then you can sell your writing skills to many blogging companies.
Similarly, you can sell any of your talents through Upwork, Fiverr, and freelancer websites.
4. B2A (Business to Administration):
Business administration is also a way of e-commerce. Here administration means government hence its name is the business to government (B2G) e-commerce.
In the B2A system, the business organization and government agencies exchange information through the website.
The government gives some work to private businesses. Such as a survey of a demographic area. The company does this work and gives information to the government.
5. C2A (Consumer to Administration):
C2A (consumer to administration) e-commerce is also called consumer to government e-commerce.
In the C2A system, the exchange of information between the consumer and the government agency takes place through the website.
It is an effective medium, to connect common people in the government system. This also gives feedback to the government.
What are the benefits of e-commerce?
- You can order goods or services at your convenience while sitting at your home. And you get the delivery of those goods or services at your doorstep. These days this trend is very much a challan. If you are busy, then this is the best shopping option for you.
2. Before buying a product, we can know about the quality of that product by reading reviews and comments about that product. Due to this, it is easy for us to buy goods. You can compare the features and prices of different products. Everyone wants to get a good deal on the best product while shopping. The customer is likely to get this deal more easily through online shopping. And along with that, they can sometimes enjoy additional benefits like discounts and coupons.
3. Access to traditional business is in a limited range. As such the reach of the shop is very limited. Unlike e-commerce, it is an international market that is open 24*7 (all the time). You can buy anything at any time or you can sell anything at any time.
4. Many people have a desire to do business but do not have enough capital to take a shop. Physical stores are very expensive on lease. E-commerce makes business easy to start and grow. And the money to set up e-commerce also takes much less in comparison.
5. When we talk about traditional business, a lot of resources are spent on it to run the business. And this reduces profits. In contrast, e-commerce uses resources efficiently as most of the business services are automated. Apart from this, all the work in e-commerce is done directly between the company and the consumer. It does not require a 3rd party, which directly benefits the organization.
6. Payment is faster using electronic or mobile transactions on e-commerce. We nowadays mostly use e-payments to sell and buy goods and services. Such as Credit cards, Debit cards, Internet banking, E-wallets, etc.
7. E-commerce provides a flexible business model platform. Any business can sell many products or services at the same time.
Scope of E-commerce:
Today we cannot imagine a world without e-commerce. Now it has become an important task to be done on the Internet. This technology has transformed the whole world into one market. Now our world has become a “Global Village” in the true sense. Now most companies’ websites are not only explored for their products and services. Rather they have the facility to buy or order online if they like. While e-commerce does not only include the buying and selling of products and services, it includes all other business activities that use the Internet and other computer networks.
- Electronic fund transfer E-marketing.
- online marketing.
- Supply Chain Management.
- Online transaction processing.
- Electronic Data Interchange.
- Automated Inventory Management System and Automated Data Collection etc.
The main role in all these works is the Internet, computer network, communication technology, commerce worldwide, web, and email.
By the way, e-commerce is an extension of ordinary commercial activities. Friends, in today’s post, we learned what is an e-commerce business.
What is the history of e-commerce? How many types of e-commerce businesses are there, and what are the benefits of e-commerce? How did you like this post, you must write me your feedback in the comment box.