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What is the definition of e-commerce? E-commerce refers to the purchase and sale of goods and services over the internet, as well as the movement of funds and data to complete the transaction. Electronic commerce, or internet commerce, is another name for it.
Today's e-commerce inquiries mainly revolve around which channels are ideal for conducting business online, but one of the most vexing issues is how to spell e-commerce correctly. The truth is that there is no such thing as right or wrong, and it all boils down to personal preference.
Types of e-commerce
As commerce continues to evolve, so do the ways that it’s conducted.
Following are the most traditional types of e-commerce models:
1. Business to Consumer (B2C): B2C e-commerce is the most popular e-commerce model. Business to the consumer means that the sale is taking place between a business and a consumer, like when you buy a rug from an online retailer.
2. Business to Business (B2B): B2B e-commerce refers to a business selling a good or service to another business, like a manufacturer and wholesaler, or a wholesaler and a retailer. Business-to-business e-commerce isn’t consumer-facing, and usually involves products like raw materials, software, or products that are combined. Manufacturers also sell directly to retailers via B2B eCommerce.
3. Direct to Consumer (D2C): Direct to consumer e-commerce is the newest model of eCommerce, and trends within this category are continually changing. D2C means that a brand is selling directly to its end customer without going through a retailer, distributor, or wholesaler. Subscriptions are a popular D2C item, and social selling via platforms like Instagram, Pinterest, Facebook, Snapchat, etc. are popular platforms for direct-to-consumer sales.
4. Consumer to Consumer (C2C): C2C e-commerce refers to the sale of a good or service to another consumer. Consumer-to-consumer sales take place on platforms like eBay, Etsy, Fivver, etc.
5. Consumer to Business (C2B): Consumer to business is when an individual sells their services or products to a business organization. C2B encompasses influencers offering exposure, photographers, consultants, freelance writers, etc.
Examples of Ecommerce:
Ecommerce can take on a variety of forms involving different transactional relationships between businesses and consumers, as well as different objects being exchanged as part of these transactions.
Retail: The sale of a product by a business directly to a customer without any intermediary.
Wholesale: The sale of products in bulk, often to a retailer that then sells them directly to consumers.
Dropshipping: The sale of a product, which is manufactured and shipped to the consumer by a third party.
Crowdfunding: The collection of money from consumers in advance of a product is available to raise the startup capital necessary to bring it to market.
Subscription: The automatic recurring purchase of a product or service regularly until the subscriber chooses to cancel.
Physical products: Any tangible good that requires inventory to be replenished and orders to be physically shipped to customers as sales are made.
Digital products: Downloadable digital goods, templates, and courses, or media that must be purchased for consumption or licensed for use.
Services: A skill or set of skills is provided in exchange for compensation. The service provider’s time can be purchased for a fee.
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