Ecommerce | Types of Ecommerce

What is e-commerce, Types of e-commerce, The process of e-commerce, Top e-commerce platforms in India

E-COMMERCE

E-commerce is the procedure that manages to buy, sell, and exchange goods and services through any electronic medium such as the internet or computer network. There are many types of e-commerce available.

E-Commerce Vs E-Business

E-Business refers to the use of the internet that provides digital enablement of transactions and processes within an organization. It involves information systems under the control of the organization.

E-commerce using the internet that includes business transactions. It involves an exchange of value across organizational boundaries.

The Process of E-commerce

1.    A consumer uses a browser to connect to the merchant’s site on the internet.

2.    The consumer browses the catalog of products listed on the site and selects products to buy.

3.    The selected items are placed in the electronic equipment of a shopping cart.

4.    When the consumer is ready to complete the sale of selected items. They provide a bill-to and ship-to address of sale and delivery.

5.    Then the e-mail is sent to the customer and merchant

6.    The order is sent to the warehouse for fulfillment

7.    Shipping carrier picks up shipment to deliver.

8.    Shipping sent to the customer.

Types of E-commerce

B2B e-commerce

Business to Business e-commerce manages organizations with other organizations online. Rather than between companies and consumers. Then offer the product to the distributors. The B2B has e-frastructure and e-markets. The goal is to reach the customer and reduce cost-to-serve.

Example: Wholesalers, Retailers, Manufacturers, etc.

B2C e-commerce

Business-to-consumer e-commerce is the type of commerce transaction in which companies sell products or services to consumers. It involves customers gathering information; purchasing physical goods, or receiving products over an electronic network. This e-commerce type is dynamic and easy to use.

Example: Amazon sells all kinds of products.

B2G (or) B2A e-commerce

Business-to-government or Business to Administration e-commerce is defined as commerce that carries between business and government through the internet. The peers that use the Internet for public procurement, licensing procedures, and other government-related operations.

Example: Businesses pay taxes, parkland development, road construction, sell goods and services to Government agencies, Legal documents, social security, employment, etc.

C2C e-commerce

Consumer-to-consumer e-commerce is the business model that provides commerce between private individuals or consumers to interact with each other. The goal of a C2C is to enable these relationships, helping buyers and sellers locate each other.

Example: eBay is a leading online marketplace and a trading platform.

C2B e-commerce

Consumer to Business e-commerce is a type of commerce model that allows a consumer or end-user provides a product or service to an organization.

Example: Freelance designers provide their service for logo creation, Customer feedback channels. Like customer service lines, reviews and ratings, Market research, etc.

C2A e-commerce

Customer to Administration e-commerce is a kind of transaction between the consumers and public administration or with the government.

Example: Education, Taxes, Health, etc.

G2C e-commerce

Government-to-customer e-commerce is also a part of e-governance. This model aims to provide good and successful implementation of services to each citizen. The Government provides these facilities to the citizens through online sites. The citizens use the information of all government departments, different welfare schemes, and application forms.

Example: Text messaging, Event webcasting, collection agencies, Business phone systems, CCTV monitoring, and review, etc.

G2B e-commerce

Government to business is a business model that refers to the relationship between the government providing services and business organization. The government uses the B2G model to approach business organizations. Both G2B and B2G are important.

Example: Broadcast Seva portal, Goods and services tax, a Web portal for MSME, e-tax, Pan, India Handmade bazaar, State GST portals, etc.

Different departments take part in e-commerce projects:

1.    Management

2.    Marketing

3.    Production

4.    Finance

5.    Procurement

6.    Customer support

Business Applications

Online shopping: 

It is the process of buying goods and services from merchants through a digital platform. It has the ability to comparison between shop and in-home privacy. Online shopping is becoming popular because of speed, global coverage, and ease of use for customers.

Selling online using your website:

1.    Shopping cart

2.    Secure server

3.    Payment processing

a.     Third-party payment processing software

b.    Internet merchant account

c.     Offline payment processing

Top E-commerce platforms in India:

Amazon: One of the largest and most popular online marketplaces. Users can buy products from Amazon or third-party sellers. Amazon sells everything from its line of technology products.

Flipkart: Like Amazon, Flipkart is also the largest online retailer. It focused on book sales then extended to other products such as Electronics, consumer, and lifestyle products.

Alibaba: It is a Chinese multinational technology company. The world’s largest wholesale marketplace and e-commerce company for global trade. It is also the fifth largest artificial intelligence company.

Snapdeal: It is one of India’s leading online marketplace and frictionless commerce ecosystem.

Myntra: It is an Indian fashion and lifestyle e-commerce company.

IndiaMART: It is an Indian e-commerce online b2b marketplace. That provides services that bring together buyers and sellers via its web portal.

Nykaa: It is an e-commerce company destination for online beauty and wellness products in India.

Advantages of E-commerce:

1.       Faster buying or selling procedure. As well as easy to find products and reach international customers.

2.       24/7 potential to generate income and flexible business hours.

3.       Reduce time spent on your business.

4.       Scaling up your business operation is quick.

5.       Remarketing a product to buyers is a way to generate more revenue.

6.       More reach to customers by traffic from search engine visibility.

7.       Low financial, operational costs and better quality of services.

8.       No need for physical company set-ups.

9.       Easy to start, track and manage business growth.

10. Easy to showcase best sellers.

11. Can encourage impulse buys.

12. Customers can easy to find products from different providers without moving to the physical store.

Disadvantages of E-commerce

1.     Unable to examine products.

2.     If your site crashes you can’t sell anything and sometimes lose your reputation.

3.     E-commerce is very much competitive.

4.     Shipping your product on time.

5.     Not everyone connects to the internet.

6.     There is the possibility of credit card number theft.