What is E-commerce?

 E-commerce

What is E-commerce?

E-commerce basically the short form of electronic commerce. Through e-commerce people can buy and sell goods with each other or can transferring money and services for exchange of something like goods for money and money for goods. And all this activity perform over an electronic network, basically over the Internet.

How many parties are involved in an e-commerce transaction?

When we buy something from physical retail store or from real world shop, there are two individual who complete the whole transaction. One is the owner of the shop or the goods and the individual who purchased the goods. But in electronic commerce or e-commerce there is no physical store present between buyer and seller, because the transaction is happening through the internet.

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And here e-commerce came into existence. In e-commerce there will an online platform where buyer and seller can meet with each other through visual communication and they can do their work. So in this case e-commerce platform are working as third party broker between the seller and the buyer.

Now we know that mainly three parties are involved in an e-commerce transaction. They are:

1. Seller

2. E-commerce platform

3. Buyer/consumer

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Example of e-commerce platform

Now we know that e-commerce platform are very important in order  to complete an e-commerce transaction. Goods for money and money for goods.

So here are some of the well known e-commerce platform available on the internet

1. Amazon (Estimated monthly active visitors:2.73 billion)

2. Alibaba (Estimated monthly active visitors: 925 million)

3. eBay (Estimated monthly active visitors: 855 million)

4. Walmart (Estimated monthly active visitors: 468 million)

5. Flipkart (Estimated monthly active visitors: 100 million)

6. Shopify ( Estimated monthly active visitors: 25 million)

Types of e-commerce with example

Basically there are mainly 6 types of e-commerce business model and those are...

See the infographic

1. Business - to - Business (B2B)

Example: alibaba and shopify

2. Business - to - Consumer (B2C)

Example: small from alibaba, Amazon, Walmart, flipkart, facebook

3. Consumer - to - Consumer (C2C)

Example: eBay and Amazon

4. Consumer - to - Business (C2B)

Example: blogger and photographer can an example of c2b e-commerce and affiliate marketing, which blogger use more often can an example of c2b e-commerce business model.

5. Business - to - Administration (B2A)

Example: trade between business sector as a supplier and a government body as customer can be an example of b2a.

6. Consumer - to - Administration (C2A)

Example: example of c2a can taxes that consumer pays to the government using an Internet medium.