Article 14

how to set up a website for your business

What is eCommerce?

eCommerce refers to any form of business transaction conducted online. The most popular example of eCommerce is online shopping, which is defined as buying and selling of goods via the internet on any device. However, eCommerce can also entail other types of activities, such as online auctions, payment gateways, online ticketing, and internet banking.

eCommerce is the fastest growing retail market projected to hit $4.135 trillion in sales in 2020. Mobile commerce, or mCommerce, is a rapidly growing new avenue of eCommerce that’s mostly driven by the expanding market and influence of smartphones and millennials’ comfort with shopping online. In 2018, the mCommerce sector enjoyed a 39.1% increase in sales compared to the previous year.

What are the Different eCommerce Business Models?

eCommerce is typically classified into three different models based on the type of participants involved in the transaction. Broadly speaking these business models are:

  1. Business to business (B2B): B2B is when businesses sell to other businesses. This is typical of stationery stores who sell office equipment in bulk to businesses. Normally B2B companies provide a discounted rate per unit if customers buy in bulk which it is great motivation for offices to avail of.
  1. Business to consumer (B2C): B2C is the most commonly thought of business model where merchants sell to consumers who buy a small amount of produce. A familiar example of the B2C model would be supermarkets where consumers buy their shopping weekly but they wouldn’t normally bulk buy anything.
  1. Consumer to consumer (C2C): C2C is a relatively new business model where consumers who previously bought something seek to resell this item to another consumer. Through marketplaces like eBay and Craigslist, this can be easy and quite lucrative for selling items that you no longer have a use for.


Publisehed in: All-time-Website-Builders 08-2019

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