Think about the last time you made a purchase online. How long has it been? A month? A week? Maybe just a day? As you can see, online shopping has quickly become an integral part of everyday life for people across the world.
Also referred to as electronic commerce, internet commerce, or online commerce, the term e-commerce refers to the buying and selling of goods or services via the internet. Four basic models of e-commerce include B2B (Business-to-Business), B2C (Business-to-Consumer), C2B (Consumer-to-Business), and C2C (Consumer-to-Consumer.) These categories help classify who the online interactions are happening between.
The business to business model is when a company sells products or services to other companies. Amazon Business is an example of an online B2B model. It's very similar to Amazon, except tailored to the needs of businesses rather than consumers.
The business to consumer model occurs when products and services are sold directly between a company and a consumer. An example of a popular B2C company is Netflix. This B2C model charges its consumers a monthly fee to access their TV shows and movies.
The consumer to consumer model is a type of commerce where consumers sells products or services to other consumers. A well-known example of C2C includes Craigslist, a website for consumers to add listings for jobs, housing, items for sale, items wanted, services, and more.
The consumer to business model is when a consumer provides a product or service to a company. Google Ads is an example of a C2B where consumers give up some space on their website for businesses to place their ads and gain commission from any conversions.
E-commerce is booming, and here's some interesting facts according to Oberlo to prove it:
E-commerce software is the behind-the-scenes work of an online business. This type of software drives all online store processes such as managing inventory, adding/removing products, processing payments, and more.
E-commerce software makes your business available 24/7. Without the restriction of hours of operation, consumers are allowed to shop whenever they please, increasing your business's sales.
Instead of only reaching customers local to your business, you can now reach customers from around the world. Being able to sell to anyone in any location opens a huge realm of opportunity for your business.
A great part about online stores is that there isn't a space restriction like physical store locations. This means your business can carry, display, and sell as many products as desired at the same time, without consequences.
Online transactions are made safe and secure through built-in or integrated payment services. This means you can enter your credit card information or login to your PayPal account without leaving your house.
Most e-commerce software includes powerful marketing tools such as search engine optimization (SEO) to attract your target audience and achieve higher search engine rankings.
In its earliest form, e-commerce was introduced over 40 years ago. Since then, electronic commerce has helped businesses grow through continuously innovating technology. E-commerce has evolved a great extent over the last four decades and is only expected to continue to boom.