Ecommerce, also known as e-commerce or digital commerce refers to the buying and selling of goods and services over the internet. Ecommerce is often associated with the sale of physical products on the internet, but can describe any transaction that is facilitated by the internet.
While ecommerce refers only to the transaction of goods and services, e-Business refers to all aspects of operating an online business.
The history of ecommerce begins with the first online sale: on 11 August 1994, a Sting CD was sold via NetMarket, a US retail platform. This was the first example of a consumer buying a product over the internet.
Since then ecommerce has evolved with the aim of making products easier to find and buy through online retailers. Freelancers, SMEs and large businesses have all benefited from ecommerce, which allows them to sell their products and services on a scale that was not possible with traditional commerce.
There are 4 main models that can describe virtually every transaction that takes place between consumers and businesses.
1. Business to Consumer (B2C):
When a business sells a good or service to an individual consumer.
2. Business to Business (B2B):
When a business sells a good or service to another business.
3. Consumer to Consumer (C2C):
When a consumer sells a good or service to another consumer.
4. Consumer to Business (C2B):
When a consumer sells goods or services to a business or organisation.
Ecommerce can take a multitude of forms where there are different transactional relationships between the seller and the buyer, such as different goods being transacted.
The sale of a product directly to the consumer without intermediaries.
The sale of products at wholesale, usually to a retailer who sells them to the consumer.
The sale of a product that is produced and shipped by a 3rd party.
The raising of money from consumers before the product is available, so that producers can access the capital needed to make this product a reality.
An automatic, recurring payment until the subscriber cancels.
6. Physical Products
Any tangible product that requires inventory and is shipped to the customer for a sale to be made.
7. Digital Products
Digital products, courses, media that must be purchased for consumption or licensed use.
A knowledge or skill offered in exchange for compensation, usually pecuniary.
The digitalisation of businesses is becoming more and more relevant to your bottom line and plays an increasingly important role in the image of brands. It allows you to sell your products at any time of the day, any day of the week. And even allows you to offer more complete and personalised information than a physical shop.
Contact us to find out more about how we can help your company boost its growth through ecommerce.