Ever had an online shopping experience? That you are sitting at home and with just a few simple clicks you can meet your needs and be safe from air pollution and traffic. You may not have the opportunity to go to the market and buy at all, or you may not even be able to find the items you are looking for. So join us in this article to introduce you to the secrets of online shopping.
Definition of e-commerce
If the definition of e-commerce is summarized in one sentence, it is:
“E-commerce refers to all the processes of buying and selling, warehousing, product exchange, product delivery services, and the information process through social networks and the Internet.”
These items can be food, clothing, digital appliances, health supplies, etc. In the past, the variety of goods may have been much less, but with the passage of time and the advancement of technology, many people turned to online shopping.
This phenomenon, known as e-commerce, is moving fast. Especially in recent months, with the spread of infectious diseases, e-commerce has become increasingly popular. E-commerce was first introduced in the 1960s through electronic data interchange (EDI) on value-added networks (VANs) The rise of Internet access and the rise of popular online retailers grew in the 1990s and early 2000s.
The Amazon website, for example, started in 1995 in Jeff Bezos’ garage as a book shipping business. Or the eBay website, which allows consumers to buy and sell online, introduced online auctions to the world in 1995, and in 1997 became very popular with the popularity of Beanie Babies dolls. With the increase in the number of Internet users, many believe that e-commerce will soon become the main way of doing business.
Research on the definition of e-commerce shows that the process-oriented definition of e-commerce offers a broader view of what it is. With this in mind, all intra-organizational business processes (manufacturing, warehousing, financial management, companies, operations), types of e-commerce, business-to-business (B2B) processes, supply chain, and support (SCM) management, business-to-customer auctions and processes (B2C) have also been influenced by e-commerce and networking technology. In the following article, we will take a closer look at e-commerce.
What are the types of e-commerce?
E-commerce has different categories and types. We will explain more about each of them in the following.
B2B or business-to-business
An example we can give for this type of business is the relationship between the manufacturer and the distributor and the wholesaler with the retailer. In such a business, the trader must know the market intermediaries in addition to the customer. In the past, this trade was more common because the main purpose of bulk buying and selling was in the form of e-commerce.
B2C or business-to-consumer
Vendor trade with the consumer or retail trade, that is, the sale of goods through online stores without direct contact with the customer. The Amazon Online Store, for example, does just that. In this business, users could easily buy various goods, from food to mobile phones, cameras, and even cars online. Certainly, if the seller can gain the trust of the consumer in this type of business, he is the winner, and he also reaches the desired product at a lower cost.
C2B or consumer-to-business
In this type of business, the consumer buys the product he needs on the Internet in agreement with the seller. For example, I put the seller of my goods for sale online at the price I want, the consumer can also offer a price, then the seller checks, and the deal is done if agreed.
C2C or consumer-to-consumer business
In this type of e-commerce, the auction of goods and services is done online, that is, consumers trade with each other without intermediaries. C2C can be likened to a newspaper requirements page or a broker. The eBay store, for example, is the largest example of C2C commerce. These stores are just intermediaries and the site itself has nothing to sell.
If you are Uncertain in defining e-commerce, we mentioned that this trade means transactions in which only goods are exchanged. But with its progress, it did not end with just trading goods. If we want to have a definition of electronic sales, it is better to say, the methods provided for electronic sales of a product or service, through electronic and offline solutions. Called. In many cases, this concept can mean more than just e-commerce.
Services such as production, marketing, transportation, service, and payment for a variety of products. When considering how to develop e-commerce websites to sell your product or service, it is important to consider the basic components of such a site. These components are no stranger to e-commerce concepts.
Benefits of e-commerce for customers:
- Ability to compare products
- Convenience in shopping
- after-sales services
- Check other customers’ comments
- Lower prices of products due to the elimination of intermediaries
Benefits of E-Commerce for Business Owners:
- Sales increase
- Availability of business services for customers 24 hours a day
- Access to more customers
- Even expand the business and receive immediate payments from customers
E-commerce, like any digital technology or consumer-centric shopping market, has evolved over the years. As mobile devices become more popular, the mobile phone business has also found its market.
With the advent of sites like Facebook and Pinterest, social media has become an important driver for e-commerce. For example, according to Paymill, since 2014, in sales on the Shopify e-commerce platform, which was due to ads on social networks, in 85% of cases, buyers using ads on Facebook to this platform They have been guided.
The changing market provides a great opportunity for businesses to improve their customer relationship and expand their market in the online world. According to Statista, by 2013, global e-commerce sales had reached $ 1.2 trillion ($ 1,000 billion) and mobile phone sales in the United States had reached $ 38 billion. More than 40% of Internet users (a total of 1 billion people) have purchased goods online. These figures will continue to grow as mobile and Internet usage expands, both in the United States and in emerging markets around the world.