WPITECH
Image default
Ecommerce

What Is Electronic Commerce?: Definition, Types and Trends

Do you know what electronic commerce is? What types exist? In this post, we explain everything you need to know about electronic commerce (e-commerce), its advantages and disadvantages and recent trends.

What Is Electronic Commerce?

E-commerce or E-commerce consists of the purchase, sale, distribution, marketing, and supply of information on products or services through the Internet. What is achieved with this network is that any potential customer can access products or services from anywhere, at any time. For this reason, it is argued that implementing an electronic commerce system will be reflected in an increase in sales and also in revenues.

Types of Electronic Commerce

The main types of electronic commerce that exist are described below :

B2B e-commerce: The B2B acronym means Business to Business and is the one in which the commercial transaction is only carried out between companies that operate on the Internet, that is to say, that consumers do not intervene. In B2B e-commerce there are three modalities:

  1. A controlled market that only accepts sellers in search of buyers.
  2. A market in which the buyer seeks only suppliers.
  3. A market in which intermediaries seek a commercial agreement between buyers and sellers.

B2C e-commerce: The acronym B2C stands for Business to Consumer, and is the most widely used and generally used.
It is carried out between a business or virtual store and a person who is interested in buying a product or acquiring a service. This segment belongs to those people who have an online account and customers who purchase their products.

B2E e-commerce: The acronym B2E stands for Business to Employee, and it focuses mainly between a company and its employees, which implies that they are offers that the company itself takes for its workers, directly from its virtual store or the portal Internet, and usually has attractive offers that help improve job performance.

C2C e-commerce: The acronym C2C ​​stands for Consumer to Consumer, and in this type of commerce there are usually people who have products that they no longer use and want to put them on sale, and use e-commerce as a means to carry out this transaction with another consumer. Here the final consumer can acquire from the primary consumer those products that the latter no longer uses, at much lower prices.

Electronic Commerce Trends

The main trends in electronic commerce are:

Payments with QR codes: It is possible to make face-to-face purchases in an easy and safe way, it is only necessary to pass the reader on the QR code, enter the information of the credit cards in the APP (the first time) and approve the amount of the service or product, which will appear when there is contact with the code. In this way, it is possible to carry out countless operations that can range from the purchase of gasoline at a service station to acquiring products in a store without the need to queue.

Payment Management in Apps: Both small and large companies currently have at their disposal, applications with payment methods, such as gateways, buttons, among others, with which it seeks to offer a unique shopping experience and without leaving the APP

Risk management and protection programs for sellers: Applications that reduce the risk of fraud, which is latent when using e-commerce, through which both the buyer and the seller are protected. With this, it is possible to avoid fraud by purchase with credit cards, unknown purchases, among others.

Electronic Commerce: Advantages and Disadvantages

The main advantages and disadvantages of electronic commerce are described below:

Advantages for companies

  1. Access to the world market.
  2. Interaction with customers.
  3. Multimedia presentation of the commercial offer.
  4. Reduction of marketing costs.
  5. Marketing strategies aimed at specific customers.
  6. Direct access to potential customers.

Customer Advantage

  1. Interaction.
  2. Possibility of making your voice and opinions heard.
  3. Access to a great offer in the market (comparison).
  4. Price control and transparency.
  5. Comfort.

Disadvantages for companies and customers

  1. Difficulty of access
  2. Ease of use and knowledge of networks.
  3. Uncertainty regarding the reliability of the transaction.
  4. Security.
  5. Frustration at not finding the product searched online.
  6. Slow psychological changes that demand a time to accept the use of technology in processes that usually developed in person.

Related posts

7 Types of E-Commerce That Stand out in the Current Market

WPITECH

Top Trending Products to Sell Online in 2019

WPITECH

5 Top Paying Affiliate Programs in 2020

WPITECH