E-Commerce Website Definition
Trade, be it barter exchange or buying and selling of goods and services has been prevalent for centuries. No one can be self-sufficient. And this brings out the need for demand and supply of goods and services. Transactions have been going on all over the world for centuries, locally, and across locations. Keeping the same concept in mind, now think electronic.
What is e-Commerce?
e-Commerce, also known as e-Business, or electronic business, is simply the sale and purchase of services and goods over an electronic medium, like the Internet. It also involves electronically transferring data and funds between two or more parties. Simply put, it is online shopping as we commonly know it.
e-Commerce started way back in the 1960s when organizations began to use Electronic Data Interchange (EDI) to transfer documents of their business back and forth. The 1990s saw the emergence of online shopping businesses, which is quite a phenomenon today.
It has become so convenient and easy, that anyone can shop for anything right from a living room, with just a few clicks. This has evolved more with the emergence of smartphones, where now, you can shop from anywhere and anytime, with a wireless device connected to the Internet. Now you can search for almost any product or service online, without having to go anywhere physically.
What is an eCommerce website?
eCommerce websites are online portals that facilitate online transactions of goods and services through means of the transfer of information and funds over the Internet. In the early days, e-Commerce was done partially through emails and phone calls. Now, with a single website, anything and everything that a transaction needs, can be executed online.
There are different e-Commerce websites for every field. The most common type is retail selling, but there are many others too, like auction websites, business-to-business services, music portals, consultancy websites, finance management websites, and the like. You can build such websites by hiring dedicated developers.
What is Mobile Commerce?
Mobile Commerce simply means buying and selling of goods, done by customers using their mobile devices.
With mobile devices taking over the planet, quite literally everyone uses their mobile devices more often than their laptops or desktops – to browse the internet. There has been a huge increase in transactions done via mobile devices in the last few years – so the benefits of mobile commerce are significant.
Different Types of eCommerce Websites
Different e-commerce websites are labeled or referred to differently, based on the function they fulfill.
- Business-to-Business (B2B): Electronic transactions of goods and services between companies.
- Business-to-Consumer (B2C): Electronic transactions of goods and services between companies and consumers.
- Consumer-to-Consumer (C2C): Electronic transactions of goods and services between consumers, mostly through a third party.
- Consumer-to-Business (C2B): Electronic transactions of goods and services where individuals offer products or services to companies.
- Business-to-Administration (B2A): Electronic transactions of goods and services between companies and public administrations.
Importance of e-Commerce
- Consumer-to-Administration (C2A): Electronic transactions of goods and services between individuals and public administrations.
With the use of mobile devices and laptops increasing every day, there are a lot of advantages of e-commerce like –
- A global choice for consumers
Disadvantages of e-Commerce
- Short product/service distribution chain
And there are some risks too with e-commerce –
- Fraud and online insecurity
- No testing or checking of services or goods
- Dependence on electronic technology
Have you ever wondered what e-commerce is or what the exact meaning of the term was? What differences are there between this term and other similar ones?
Surely you have since online business is more popular than ever. However, despite its spread, a lot of people still don’t really know what it is.
For this reason, this post’s objective is to explain the exact definition of e-commerce, how it differs from similar terms, the different types that exist, and its advantages compared to traditional businesses.
Are you ready to learn everything you need to know about electronic commerce?
Let’s do it.
The concept of e-commerce: what is
E-commerce or electronic commerce is, according to the definition of Wikipedia is…
A system for the buying and selling of goods and services using the Internet as the main means of exchange.
In other words, it is a business that electronically manages both the collections and payments.
Differences between e-commerce and e-business
E-commerce is often confused with e-business, although they have nothing to do with one another.
E-commerce only refers to the goods and services transaction between a seller and a consumer, whereas e-business refers to the complete process necessary to manage an online business.
Within e-business we can find, for example:The e-business concept is wider than the e-commerce one and e-commerce is actually a part of e-business since it is a type of business model.