What is ecommerce: understanding its functions and types

What is ecommerce: understanding its functions and types

An internet store operates on similar principles as a traditional brick-and-mortar retailer. The procedure is the same whether you are conducting business online or at a physical store.

On a bigger scale, the three main operations that make up the eCommerce process may be separated. One involves getting the order, processing it, and finally sending it. Isn’t this how every business plays? What distinguishes eCommerce business models from others in the field, then.

We must ascertain what distinguishes eCommerce enterprises from other types of businesses in terms of operation. Additionally, this blog post will provide you with a thorough understanding of the processes and types of online eCommerce enterprises and the sector and why you should hire ecommerce development services.

What is E-Commerce?

eCommerce is the term for the activity of buying and selling goods or services, exchanging money, and sending data through a computer network (also known as electronic commerce). Users may do business no matter their location or available time, thanks to this network.

Amazon defines ecommerce as a brick-and-mortar business that has been transformed into an online storefront for the purpose of transacting goods and services online. According to the statement, a business model or a distribution channel may be used, depending on the strategy.

It enables businesses to communicate with clients anywhere in the world. There are several eCommerce development company that provide a wide range of ecommerce development services for the growth and improvement of eCommerce businesses.

It is crucial to recognise the differences between e-commerce and e-business since there is sometimes confusion between the two. A part of the phrase “e-business” is known as “eCommerce.” It refers to online transactions like sales and purchases, whereas e-business includes all types of online business transactions, including sales calls, material procurement, contract signing, and so on.

E-commerce functions on the same principles as any traditional store. Customers come to your online store, browse the selection, and then decide whether to make a purchase. The primary difference is that they don’t need to have a room of their own and can shop for anything from the comfort of their own home. Additionally, your customer base is not limited to a certain area or region. This turns into an extra perk of using the internet.

So, now let us discuss the three basic functions of ecommerce before we begin with its different types.

  • Order received / Order Accepted

Accepting the order is the initial step. A customer buys anything from your online store or e-commerce platform. You’ll be alerted as soon as the order is placed.

  • Order processed

Processing the order is necessary. The order is finished, the payment is handled, and the sale is registered after that. Payment transactions are processed through payment gateways.

  • Order Shipped

When your item is prepared, it will be sent to your preferred destination within the indicated number of days.

Types of E-Commerce Business Models

Unquestionably, there are a variety of ways that eCommerce organisations may run their operations. These methods are referred to as e-commerce business models. The majority of online B2C sellers operate in the eCommerce sector. There are, however, a number of additional styles of eCommerce websites. Globally, there are primarily six different types of e-commerce business models.

B2B (Business to Business)

In this situation, in situations of this kind, e-Commerce businesses may be more inclined to sell their goods or services to other enterprises. Although most of the time the buyer resells to the consumer, the buyer is occasionally the final user.

Business-to-business (B2B) transactions are thought to have a long sales cycle and large order sizes, but there may be more recurring orders and different order values.

B2C (Business to Consumer)

B2C businesses concentrate on the customer. The B2C business model has a variety of possibilities because it is the most prevalent. When you purchase anything from an online retailer as a consumer, such as clothing, home goods, fashion, or even entertainment, it is known as a B2C (business to consumer) transaction.

C2C (Consumer to Consumer)

A consumer-to-consumer (C2C) business, sometimes known as an online marketplace, links buyers and sellers of goods and services and also conducts business by facilitating transactions and disclosing potential fees.

C2B (Consumer to Business)

Through such C2B companies, people may offer goods or even services directly to enterprises. Under this eCommerce model, clients might advertise tasks they need completed on a website and have firms compete for the assignment.

B2A (Business to Public Administrations)

A company may readily use an internet platform to market its goods to government organisations or organisations that are owned by the government.

C2A (Consumer to Public Administrations)

As we have already stated, it is the same for consumers as it is for B2A. Additionally, they can make money by selling directly to public sector organisations or government personnel. Although the government rarely pays locals for products or services, it frequently does so in the following sectors, including social security, education, tax preparation, and more.

Final Note

The ecommerce industry has risen to the top of all internet businesses. Offering all different kinds of services online has made it one of the most popular internet retailers. Their online marketplaces are easier to use and more convenient due to mobile device compatibility. Online merchants, whether they are small enterprises or larger corporations, may profit and enhance their operations. You can surely engage an ecommerce development company to get desirable ecommerce development services for all your business needs.