What exactly e-commerce is ?
What is the process of e-commerce ?
Before moving to the actual process of e-commerce, let us understand what exactly e-commerce means? E-Commerce is the online version of the sales we use to do offline or ordinarily.
E-commerce is a process in which buying and selling are done through an online process and even the transfer of data and information is also transferred through online means. That is why “e-Commerce” stands for Electronic Commerce.
Introduction To e-commerce
In today’s world where the people are consuming their average time of approximately 145 minutes per day on internet surfing. And have less time to go for offline or ordinary purchases. e-Commerce is going to be booming around this decade. Due to increasing popularity, every company has found a new way to pitch their product and increase their sales figure and customer base.
In the business model of e-Commerce, process marketing is the core process, because an e-Commerce platform doesn’t only give you the space for sales procedure but also involves the marketing perspective.
Key areas for e-Commerce flow to take place
1- Receiving orders from the e-Commerce process.
2-Processing order information.
Four main types of e-commerce -
1- Business to Business (b2B)
As the name suggests, the business-to-business type of e-commerce is selling products or services from one business to another business personals. Most of the business works on the wholesale model in this type of e-Commerce website.
Further, B2B e-Commerce type is divided into two broad categories
1-Horizontal – In this type of e-Commerce category, the supplies of products or services are often not for the raw material but usually for the operations, maintenance or repair.
2- Vertical – In this type of e-Commerce category, the supplies of products or services are often the raw material used for the manufacturing.
It is divided into two categories-
a)- Upstream :- In this category of vertical e-Commerce the suppliers are connected with or try to build a relationship with the manufacturers. And urges them to use their raw material to manufacture.
b)- Downstream – In this category of vertical e-Commerce the manufacturer tries to build the relationship with the suppliers.
2- Business to consumer
In this type of e-Commerce, The end-user is connected with the seller and service providers. The B2C model is built to provide selling, buying, transaction of the payment, or return options for ease of customers.
There are five different B2C models:-
a)- Direct Seller
b)- Online Intermediaries
d)- Community Based
e)- Advertising Based
3- Business to government
It is clear from the title that when companies sell their product directly to government agencies or departments.
They wouldn’t directly come and order for your product or services. You will approach them and convince them to make a deal with you. It creates more authenticity for your proposals.
4- Business to business to consumer
In B2B2C, The products are sold on behalf of the owner company by online sellers. It is a combination of B2B and B2C e-Commerce models.
Since these sellers are experts in selling the product on different e-commerce platforms. Online Seller and product owners share the profit percentage or on the commission per sold product. The primary objective of this process is to reach out to the new custom domain with help of these experts.
How e-commerce has brought a revolution to developing countries?
In developing countries, e-Commerce is changing the dimension of the business and creating new horizons for you. If we talk about India, E-commerce has revolutionized the market and the perspective of buyers too. Logistics is one of the biggest challenges in developing countries and has brought logistics may be too costly for the e-Commerce platform. But e-Commerce platforms like Amazon, Flipkart, Ajio, and many more are working hard to overcome these challenges.
Future of e-commerce-
E-Commerce is changing every year with the up-gradation in technologies and providing new challenges with opportunities. New challenges in the new era have brought both scary and excitement with it. E-Commerce has brought trends along with it. And, this trend will be continued people will be buying and exploring multiple platforms. Among which one is most efficient gets selected by the user. E-commerce has brought sellers on a single platform as well as is providing a new market to retailers. Using modern tools has made these e-Commerce platforms more effective and overcome day-to-day challenges.
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