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what is e commerce? definition of e commerce and types of ecommerce



What is e-commerce?

The short description of e-commerce(electronic commerce) can be defined as the process of buying and selling goods or services through the Internet, and the whole process of transferring money and products to complete the trade is called e-commerce.

E-commerce is a modern-day invention that facilitates the purchase and sale of goods and services through electronic means or, more specifically, the Internet.

Before the Internet, the process that manufacturers and customers used to physically buy and sell between each other has now begun to take place through the Internet, especially in the case of money transfers online.

E-commerce or electronic commerce addresses issues that a manufacturer and buyers make online during a sale purchase. A lot is going on in online business, but e-commerce only addresses sales, purchases, and especially payments.

When we talk about online trade, it'll be a sale purchase that will be on a computer or laptop through the Internet in which the customer will pay online and the item will be received on the same computer or laptop. Mostly these are virtual products.

Also, a sale purchase will be one in which you'll process the sale of the product online, but the product will be delivered to you physically.

The revolutionary change in e-commerce is mobile payments. Electronics payments no longer bear a computer or laptop but a mobile and 3G or 4G Internet connection, and you can credit payments from your account to any other account.

Over the past few years, e-commerce platforms such as Amazon and eBay have been used broadly, leading to the development of the online cell purchase process. Online retail has also increased in 2019-20 due to the Corona epidemic.

How does e-commerce work?

The process of e-commerce is carried out online through the Internet, where users connect to the Internet and order products or services through their computer, laptop, mobile browser, or mobile app.

When a customer places an order online through their browser, the customer's web browser will communicate with the server hosting the online store website. Once the store is available on the online store website, the order data will then be sent to a central computer called the order manager - the order manager will send the data to the warehouse where the product or service will be physically present. Attached is a merchant system that completes the online payment process, such as applications such as PayPal.

The Order Manager ensures that the store inventory and customer funds are sufficient to complete the order process before the deal is finalized. After order confirmation, the order manager will notify the web server of the online store site, which will then display a message informing the customer that their order has been successfully processed. The order manager will then send the order data to the warehouse or completion department so that the product or service can be successfully shipped to the customer. These products can be solid or digital or can be a service that can be accessed by the customer after the completion of the payment process.

Platforms that facilitate e-commerce transactions may also include online marketplaces, where product or service sellers simply sign up. And customers buy things online using their software tools.

E-commerce provides the global market to local sellers. Closes the gap between sellers and global audiences, helping to expand its reach into the global market with limited capital.

Allows consumers to make purchases. Facilitates trade day and night, without any time constraints

Types of e-commerce

There are the following types of e-commerce

  1. Business-to-Business (B2B)
  2. Business-to-Consumer (B2C)
  3. Consumer-to-Consumer (C2C)
  4. Consumer-to-Business (C2B)
  5. Business-to-Administration (B2A)
  6. Consumer-to-Administration (C2A)

1. Business-to-Business (B2B)

An e-commerce business-to-business(B2B) model involves two or more business parties or companies. These trade channels usually include manufacturers and wholesalers. These trading channels may also include two manufacturers. For example, a car manufacturer buys car tires from another tire manufacturer.

2. Business-to-Consumer (B2C)

The business-to-consumer(B2C) e-commerce model is about manufacturers or wholesalers and end users. In this business model, goods or services are sold to end customers through digital means. This way of doing business has caused a stir in the business world. This business model allows consumers to take a closer look at their proposed purchase before placing an order. The company/agent who receives the order after confirmation of the customer's order delivers it to the customer at a reasonable time. Famous businesses working in this channel include Amazon, Flipkart, etc.

This method of purchase has proven to be more beneficial for consumers than traditional purchases, as it gives consumers access to helpful content before they make a purchase, from which they can get proper guidance.

3. Consumer-to-Consumer (C2C)

This e-commerce business model C2C is used to sell consumer goods or services to other consumers through digital mediums. This method of trading is done through a digital platform provided by a third party. Popular companies that use this method of trading include OLX, Quickr, etc.

4. Consumer-to-Business (C2B)

A consumer-to-business (C2C) model is the exact opposite of the business-to-consumer B2C model. The C2B model allows end users to sell their products or services to companies through digital means. In this method of business, companies or institutions buy a variety of items from the public. The nature of this usually includes logo designing, royalty-free images/media/design, sale of elements such as articles, etc.

5. Business-to-Administration (B2A)

This (B2A) model of e-commerce facilitates transactions between government/administration and business through various central websites. This model builds a digital communication bridge between government/administration and businesses. Through these platforms, businesses submit auctions, tenders, and bids.

Extensive investment is being made in various countries by the governments to adopt this model.

6. Consumer-to-Administration (C2A)

The Consumer to Administration C2A model of e-commerce provides a digital platform through which transactions between consumers and government agencies take place. Consumers can submit feedback or information about government sectors directly to government officials/administrations. Its application areas include:

  • Exchange of information
  • Distance education.
  • Bill paying
  • File a tax return.
  • Payment of health services etc.

Mobile e-commerce (M-commerce)

Mobile eCommerce (M-Commerce) is a fast-emerging type of e-Commerce that completes online sales transactions using mobile devices. The scope of e-commerce includes mobile shopping, mobile banking, and mobile payments.


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