E-commerce

Nowadays, e-commerce is one of the most popular forms of business transactions. It can be seen in almost every aspect of our daily life and commercial relationships. The types of e-commerce have been adaptive and flexible enough so that they can assume any shape in any situation for maximum participation of people in this type of business relations. In this article, we have discussed what e-commerce is, what the types of e-commerce are, what the advantages of e-commerce are, and what the disadvantages are. 

What is e-commerce?

The full form of e in the word e-commerce is electronic. So any form of business, commercial transaction, monetary transaction, fund transfer, material transfer, transaction of goods and services is known as e-commerce. Here the transactions occur in virtual platforms and through online communication systems over the internet. So, electronic mediums and electronic gadgets like computers, laptops, tablets, smartphones are usually involved in the process of the transaction. 

Types of e-commerce 

There are usually four main types of e-commerce prevalent nowadays. They are transactions between different parties. 

Business to Business or B-2-B

When the transaction occurs between two parties who are corporate organizations, business platforms are known as Business to Business or B-2-B. Here one business organization sells its products or services to another business organization. Examples are the transactions between the manufacturing houses and the wholesale dealers, or the business transaction between the wholesale dealers and the retail shop owners. 

Business to Consumer or B-2-C

When one of the transacting parties, the seller, is a business organization or trading platform and the other one involved, the buyer is the end-user, customer, or consumer then the e-commerce model is called Business to Consumer or B-2-C. Here the purchaser purchases the commodity or service from the manufacturer or production unit directly or with the help of an intermediary platform. Examples of this type of e-commerce are Amazon, Flipkart, etc. where the consumer directly buys from a business organization with the help of electronic communication.

Consumer to Business or C-2-B

In this type of e-commerce, the selling party is the individual consumer or customer and the buying party is some business organization. Here the services or commodities exchanged are often displayed in reverse auctioning. An example of this type of e-commerce is OLX.  

Consumer to Consumer or C-2-C

This type of e-commerce model is also known as peer to peer, transaction model, because here no business organization is involved and one consumer conducts a business transaction with another consumer directly. So it is a form of peer relationship. An example of this type of e-commerce is eBAY.

Apart from these four types of e-commerce, there are two types of e-commerce

Business to Administration or B-2-A

In this type of e-commerce, the seller is some business organization and the purchaser is the government of some administrative system, either local administration of some district or state or national government. An example of this type of e-commerce is the business transaction between Akash Byju’s and the Indian Government for online educational support to the students. 

Consumer to Administration or C-2-A

In this type of e-commerce, the seller is the individual citizen and the buyer is the government of some administrative system, either local administration of some district or state or national government. An example of this type of e-commerce is the business transaction between the employers of government jobs and the administration, such as the teachers in government schools, the professors in the government colleges and universities, health care experts in the government facilities, who sell their services to the government over online platforms.

Advantages of e-commerce 

The Advantages of e-commerce are versatile and numerous.

Time-sensitive

One advantage of e-commerce is that it can save time for both the buyer and the seller and can ensure fast and easy transactions without delay.

Cost-sensitive

It can be very effective in saving additional costs for transactions, can increase the profit margin of the seller, and can be beneficial according to the budget fixed by the buyer.

Comparison between different products and services

The consumer or the purchaser has the opportunity to compare the commodities and services offered by competitors.

Effective over long distance

It can be effective in international, regional, and global transactions.

Large platform for transaction 

The transaction platform of e-commerce is large and user-friendly.

Disadvantages of e-commerce

E-commerce can result in loss of the opportunity to try a product before purchase, to have personal interaction, and can take a long period for delivery.

Conclusion

Thus we have discussed the in and outs of e-commerce. Here, face-to-face interactions and physical contact between the transacting parties are not needed and the parties can retain their privacy and anonymity when they are not comfortable with divulging additional information. So it is expanding in its reach and scope.