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    Kalpana Pokhrel
    E-commerce involves buying and selling goods online and transferring funds electronically. There are four main e-commerce business models: business-to-consumer (B2C), business-to-business (B2B), consumer-to-business (C2B), and consumer-to-consumer (C2C). While e-commerce provides advantages like lower costs, a larger market, and increased sales, it also presents challenges such as higher advertising expenses, more competition, and the inability for customers to physically examine products.

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    Projet

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    Kalpana Pokhrel
    32 views3 pages
    E-commerce involves buying and selling goods online and transferring funds electronically. There are four main e-commerce business models: business-to-consumer (B2C), business-to-business (B2B), consumer-to-business (C2B), and consumer-to-consumer (C2C). While e-commerce provides advantages like lower costs, a larger market, and increased sales, it also presents challenges such as higher advertising expenses, more competition, and the inability for customers to physically examine products.

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    E-commerce involves buying and selling goods online and transferring funds electronically. There are four main e-commerce business models: business-to-consumer (B2C), business-to-business (B2B), consumer-to-business (C2B), and consumer-to-consumer (C2C). While e-commerce provides advantages like lower costs, a larger market, and increased sales, it also presents challenges such as higher advertising expenses, more competition, and the inability for customers to physically examine products.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    32 views3 pages

    Projet

    Uploaded by

    Kalpana Pokhrel
    E-commerce involves buying and selling goods online and transferring funds electronically. There are four main e-commerce business models: business-to-consumer (B2C), business-to-business (B2B), consumer-to-business (C2B), and consumer-to-consumer (C2C). While e-commerce provides advantages like lower costs, a larger market, and increased sales, it also presents challenges such as higher advertising expenses, more competition, and the inability for customers to physically examine products.

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    INTRODUCTION:

    E-commerce is buying and selling goods via the internet and transferring money and data to
    complete the transactions. All stores that sell products online can be classified as e-commerce.
    This could be anything from a small online store to big brand sites like Amazon and everything
    in between. Technology is changing how we do business at a phenomenal pace, and e-
    commerce trends continue to grow and evolve. During the pandemic, brick-and-mortar
    businesses suffered while-commerce companies boomed. Huge names like Amazon made
    record sales, and statistics show that despite being able to return to the shops, online grocery
    shopping trends are still rising with simple tools to set up e-commerce websites and e-
    commerce platforms like Shoplift, Etsy, and eBay, anyone can set up an e-commerce store
    quickly.  Electronic commerce draws on technology such as mobile commerce, electronic funds
    transfer, supply chain management, Internet marketing, online transaction processing,
    electronic data interchange (EDI), etc

    Figure : E-Commerce
    Types of e-commerce 
    E-commerce businesses typically fall into one of four main groups, depending on their
    customers. Additional e-commerce business models exist, but they tend cater to specialized
    businesses and niches. Understanding the key differences between these models can be
    beneficial for organizations preparing to launch an e-commerce site.

    1. Business to consumer (B2C)


    In a B2C model, the business sells directly to a consumer. If you (the customer) buy a product
    from a retailer like Amazon (a business), you're purchasing from a B2C company. Similarly, if
    you set up a Shopify store and sell directly to consumers, you use the B2C model.
     
    2. Business to business (B2B)
    The B2B model involves selling products or services from one business to another. An example
    would be a wholesale company selling parts to another business that uses its items. Sometimes
    the purchasing business buys products at a wholesale rate and sells them for a profit.
     
    3. Consumer to business (C2B)
    The C2B model includes individuals who sell their products or services to a business through an
    online format. Social media influencers and bloggers can fall under this category if they receive
    money from businesses to promote the brand. 

    4. Consumer to consumer (C2C)


    C2C e-commerce models typically involve online sites that allow people to sell goods and
    services directly to others. An example of this might be someone selling unwanted items on eBay
    to someone else. Other platforms include Facebook Marketplace and Etsy.
    Read more: Choosing Your Business Structure: Types and Use Cases
    Advantages and disadvantages of e-commerce
    E-commerce has been so successful that many physical businesses now implement omnichannel
    sales strategies, including e-commerce sites. However, you may find it helpful to consider the
    challenges associated with online sales as you plan to take your business online.

    Advantages of e-commerce:

     Reduced operating cost: Compared to a physical store, an e-commerce store is typically


    cheaper to set up and operate. You can avoid spending money on costly items like
    building rent or a mortgage, fixtures, signs, etc.
     Extended opening hours: An e-commerce store never needs to close. Customers can
    access the site and complete purchases anytime, even when you're not monitoring what's
    happening.
     Larger international audience: Physical stores are limited to their location and the
    customers who enter. With an e-commerce store, you can sell to customers worldwide,
    massively expanding your market.
     Increased sales conversions: The internet creates additional marketing opportunities and
    personalized experiences to reach customers when they're ready to buy your product.
    Social media, SEO, and more allow you to connect with customers actively searching for
    goods and services like yours and can even let them complete a purchase with a single
    click.

    Disadvantages of e-commerce:

     Rising advertising costs: Crowded markets in the e-commerce space have increased the
    need for digital marketing and increased marketing fees. These advertising costs decrease
    your profit.
     Increased competition: With e-commerce becoming accessible and popular, there’s
    more competition within your target market. This includes the giants with big budgets
    and expert marketing teams.
     Customers can't physically touch the product: Consumers who can’t try on or touch
    products may find it more challenging to make a choice. This can lead to an increased
    number of returned items. Some companies are adding augmented virtual reality to
    compensate, but this can increase your operating costs.
     Potential site crashes: If the power goes out in a physical store, you may still be able to
    sell products to your customers. When an e-commerce site goes down, no one can
    complete a purchase.

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