The concept of electronic commerce and its importance, e-commerce is just the process of buying and selling goods and services by electronic means such as mobile phone applications and the Internet. E-commerce refers to both online retail as well as electronic transactions. The popularity of e-commerce has increased dramatically over the past decades, and in other ways, it has replaced Traditional brick stores, so in this article, we will talk about the concept of electronic commerce and its importance
The concept of electronic commerce and its importance
There are several benefits of e-commerce:
Global reach With a physical brick store you are geographically restricted to nearby markets, for example, if you have a store in New York and also want to sell in New Jersey, you will need to open another physical location.
There is no such limitation in e-commerce; instead, you can sell to anyone anywhere in the world via your digital e-commerce business.
Always open store The physical store business usually has limited hours, but the online e-commerce store remains open 24 hours a day, seven days a week, 365 days a year and this is very convenient for the customer and an excellent opportunity for all sellers.
Cost-saving E-commerce companies have much lower operating costs compared to physical stores. There is no rent to pay, no employees to hire and pay their salaries, and very little fixed operating costs and this makes e-commerce stores very competitive in terms of price, which usually leads to an increase in Significant market share.
Website Independence The e-business owner is not associated with anyone’s website when running their business as long as you have a laptop and an internet connection, you can run your e-commerce business.
Niche market dominance due to the low operating costs, the ability to target the ideal consumer, in addition to reaching the global audience that an e-commerce website brings, guarantees the profitability of your companies.
Development of electronic commerce
E-commerce is transactions or other terms of sale that are conducted in an electronic format and this includes the purchase, sale and exchange of goods or services in exchange for exchanging money using computer networks such as the Internet.
E-commerce development can be divided into four main categories which are B2B, B2C, C2B and C2C.
1. B2B (company to company)
B2B definitely does business with companies that do business with one another.
B2C (business to consumer)
Consumer businesses usually involve selling products and services to the general public or consumers through the use of catalogs that use shopping cart software. B2B can easily make a lot of money.
3. C2B (Consumer to Business)
C2B is similar when a client publishes his or her assignments or assignments on the Internet and website. The client sets up an online budget as several companies within hours review the specifications a consumer needs and then bid on the project. It empowers clients across the globe by providing a meeting floor and platform for that particular transaction.
4. C2C (consumer to consumer)
A very good example of C2C is eBay. It is the place where customers sell their products to other customers through the bidding process. Hence, whoever offers the highest price can purchase the product.
Other forms of e-commerce are G2G (government to government), G2E (government to the employee), G2B (government to the company), B2G (company to the government), G2C (government to citizen), C2G (citizen to the government).