What is E-Commerce?

Shopping with iPhone You’ve seen the term everywhere.  E-Commerce, eCommerce, even E-Business — it doesn’t matter how you spell it, it’s the same thing.  E-Commerce is any type of business transaction that involves a monetary exchange over the internet — on a computer or cellphone.  This can include shopping, banking, renting, and so on.  And since it is 2014, e-commerce is growing faster than ever.  Why? There are a handful of reasons. But first, let’s review the types of e-commerce.

Types of E-Commerce

B2B – Otherwise known as Business-to-Business, this is any exchange between a distributor and a retailer, wholesaler and a retailer, etc.

B2C – Also known as Business-to-Consumer, this is the most common type of E-Commerce, and where Web Payment Software specializes! If you’re buying a vintage piece of art, movie, etc., you’re participating in B2C E-Commerce.

C2B – This means Consumer-to-Business. A consumer will post something he/she needs done, like a video. Businesses then bid on the project, and the consumer decides who he/she would like to work with.

C2C – Consumer-to-Consumer e-commerce is growing at a rapid pace. The most common example is eBay, where two customers interact to make a deal. One customer pays for the item, then the other ships it.

The Benefits of E-Commerce

1. The prices are usually lower. Take a second to think about how many expenses there are for a brick and mortar business. You need to for pay employees, electricity, insurance, etc. With an online business, you’re almost always eliminating the need for humans. This keeps expenses on the business down, and the price of goods lower for shoppers.

2. You can compare prices. Think the price of something seems high? You don’t need to hop in the car and search for the best price. You just need to compare by opening a few tabs on your internet browser. This also helps when you’re running an online business, because prices of competitors often fluctuate.

3. It’s convenient. No need to worry about store hours. Shop or do your banking anytime, anywhere. Shipping can be done extremely quickly nowadays, too. Delivery drones soon, anyone?

4. Your market can be global. As a business owner, you won’t need to market only to people close to where you’re selling.

As you can see, e-commerce has many different parts that bring the whole process together. With the rise of mobile accessibility and social media, e-commerce will only get larger. Why do you find e-commerce useful?

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