What is e commerce? : Electronic Commerce, its actually the buying and selling of goods and services, and enables brand to make a wide variety of products available online. So, It opens door to a universe of shopping and business possibilities.

What is e commerce?

Moreover, its like having your own virtual store which is accessible to anyone with just an internet connection. That’s E-commerce, a fancy term for online shopping.You see, these businesses set up shops online and you, the customer, can explore, choose, and purchase with just few button clicks by just sitting at home. They can reach people as far and wide, expanding beyond local boundaries.

Over time, it has transformed, upgrading the way we shop and do business. Its a journey integrated with new features and enhancing user experiences. Of course, its not all that perfect, there are security concerns and businesses face tough competition. It’s making marketplace bit more of digital and accessible.

E commerce meaning 

As mentioned above e commerce is buying and selling of goods and it also enables brands to make wide variety of products available in online store, moreover, It is also part of the greater industry which is also knows as electronic business (e-business), which involves various processes to run a company.

Providing goods and services online may seem easy, but its isn’t. It requires a lot of research about the products and services, about market ,the audience, the competition, as well as expected business costs.

But it helped various businesses to get access to find and establish a wider market presence by providing cheaper and efficient channels to distribute their products and services. 

This industry has gone through so many changes since its started, resulting a great deal of evolution. Well, you may find your options are limited when it comes to innovation. However, e commerce will help you to improve and grow your business to whole different level and make you have access to all new technologies to help streamline business processes.

6 Types of E commerce

types of e commerce

1. Business-to-Business (B2B)

B2B in e-commerce is like when business do online shopping. Therefore, its one business purchasing stuff from another business, making the whole business go world around.

2. Business-to-Consumer (B2C)

Lets tap about the B2C in e-commerce world, its when business is selling product directly to you or the person browsing online. B2B e-commerce is a digital space where business make their stuff available for you to buy it within just few clicks.

3. Consumer-to-Consumer (C2C)

Its all about regular people selling stuff to other regular people. So, its not a big business selling to you, however, its more like a neighbour selling stuff to you.

4. Consumer-to-Business (C2B)

When an individual, becomes the one offering something to businesses. C2B turns you into supplier, offering your goods or talents to businesses on your terms and make the business world notice what you bring to the table.

5. Business-to-Administration (B2A)

In simple language, businesses, big or small, offers services to support government or administration needs.

6. Consumer-to-Administration (C2A)

Its a platform for regular people like us who become contributors, who may interact with administration by sharing feedback on a government websites, participating in a survey etc.

Importance of E commerce

importance of e commerce

Its like having a 24/7 digital market place at your fingertips. For business, its a game changer, that opens door to customers far and wide, not just locally.Business get to grow their reach, and we get to shop without leaving the couch.The consumer are provided with a various kinds of options for procurements.

Whether you’re a shopper or a business owner, e-commerce will make things easier and more connected to digital world.For different businesses, advantage of e commerce like boosted sales and cost-effectiveness. Here are some advantages and disadvantages.

Advantages of e commerce

  • Owners can generate revenue semi-passively
  • It has greater earning potential with no limitations, as many stores provide consumers exclusive inventory that might be unavailable elsewhere.
  • Greater market control including target audience, target ads and pop-up placements.
  • Easier to retarget customers and consumers and easily browse for specific products.
  • And most importantly the convenience of customers 

Disadvantages of e commerce

  • Limited customer service opportunities 
  • Products can’t been seen or handled until delivered, so purchases might be unsatisfying for the customer.
  • Loss of revenue when websites go down
  • Higher competition as there are lower barriers to entry and greater customer audience
  • Hight reliance on technology, in case websites crashes or might be temporarily take down for any reason, your business is closed until your e-commerce storefront is back.

Types of E-commerce revenue models

1. Dropshipping


It allows a company to create a digital facade, generate sales and then the supplier provide them the good.Then, stores passes the order to dropship supplier. And supplier manages inventory, packages and purchases of those goods..

2. White Labeling

white labeling

It leverage already successful products sold by another company. White labeling is the subtle teamwork that lets business shine without necessarily shouting their names from the rooftops

3. Private Labeling 

private labeling

Its like a business sharing its product, letting another brand put their names on it. So, its a low-key partnership where company create different logo but with the same quality. However, its a branding teamwork without the big fanfare.

4. Wholesaling


When a company buys a bunch of products in bulk from a manufacturer, getting a good deal. Later, sell these products to small retailers, and make sure of things work smoothly and then deal directly with the big manufacturer.

5. Subscription


In simple terms, its like a membership to regularly get something you love. Its a service where you sign up, pay a fixed amount and as a result, you receive product or access regularly.


The Bottom Line

E-commerce is the digital place where various  businesses and customers connects. Its an ultimate convenience for customers to shop online 24/7 from a virtual store, making life easier.

If you wanna start an e-commerce site, make sure you do your research first and start with the small and narrow steps to ensure that you have room to grow.

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