E-commerce: Difference between revisions

Latest revision as of 03:00, 11 December 2024

Overview of electronic commerce

E-commerce (electronic commerce) refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions. E-commerce is often used to refer to the sale of physical products online, but it can also describe any kind of commercial transaction that is facilitated through the internet.

History[edit]

The history of e-commerce dates back to the 1960s when businesses started using Electronic Data Interchange (EDI) to share business documents with other companies. The development of the internet in the 1990s and the introduction of secure online payment systems paved the way for the modern e-commerce industry.

Types of E-commerce[edit]

E-commerce can be classified into several types based on the nature of the participants involved in the transaction:

Business-to-Consumer (B2C): This is the most common form of e-commerce, where businesses sell products or services directly to consumers. Examples include online retailers like Amazon and eBay.

Business-to-Business (B2B): In this model, businesses sell products or services to other businesses. This type of e-commerce is often used for wholesale transactions.

Consumer-to-Consumer (C2C): This involves transactions between consumers, typically facilitated by a third party. Online marketplaces like eBay and Etsy are examples of C2C platforms.

Consumer-to-Business (C2B): In this model, individuals sell products or services to businesses. An example is a freelance platform where individuals offer their services to companies.

Advantages of E-commerce[edit]

E-commerce offers several advantages over traditional retail:

Convenience: Consumers can shop 24/7 from anywhere with an internet connection.

Wider Selection: Online stores often offer a wider range of products than physical stores.

Price Comparisons: Consumers can easily compare prices from different sellers to find the best deal.

Lower Costs: E-commerce businesses can reduce costs related to physical storefronts and staffing.

Challenges of E-commerce[edit]

Despite its advantages, e-commerce also faces several challenges:

Security Concerns: Protecting customer data and ensuring secure transactions is a major concern.

Logistics: Efficiently managing inventory and shipping can be complex and costly.

Customer Experience: Providing a seamless and engaging online shopping experience is crucial for retaining customers.

Technological Innovations[edit]

E-commerce continues to evolve with technological advancements:

Mobile Commerce: The rise of smartphones has led to an increase in mobile shopping.

Artificial Intelligence: AI is used for personalized recommendations, chatbots, and customer service.

Augmented Reality: AR is being used to enhance the online shopping experience by allowing customers to visualize products in their environment.

Also see[edit]

References[edit]

External links[edit]

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-'''E-commerce''' or '''electronic commerce''' is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. These business transactions occur either as business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C) or consumer-to-business (C2B).
+{{Short description|Overview of electronic commerce}}
+{{Use dmy dates|date=October 2023}}
+'''E-commerce''' (electronic commerce) refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions. E-commerce is often used to refer to the sale of physical products online, but it can also describe any kind of commercial transaction that is facilitated through the internet.
 ==History==
-The concept of e-commerce was first introduced in the 1960s via an electronic data interchange (EDI) on value-added networks (VANs). The medium grew with the increased availability of internet access and the advent of popular online sellers in the 1990s and early 2000s. Amazon began operating as a book-shipping business in Jeff Bezos' garage in 1995. EBay, which enables consumers to sell to each other online, introduced online auctions in 1995 and exploded with the 1997 Beanie Babies frenzy.
+The history of e-commerce dates back to the 1960s when businesses started using Electronic Data Interchange (EDI) to share business documents with other companies. The development of the internet in the 1990s and the introduction of secure online payment systems paved the way for the modern e-commerce industry.
+==Types of E-commerce==
+E-commerce can be classified into several types based on the nature of the participants involved in the transaction:
+* '''Business-to-Consumer (B2C)''': This is the most common form of e-commerce, where businesses sell products or services directly to consumers. Examples include online retailers like [[Amazon]] and [[eBay]].
+* '''Business-to-Business (B2B)''': In this model, businesses sell products or services to other businesses. This type of e-commerce is often used for wholesale transactions.
+* '''Consumer-to-Consumer (C2C)''': This involves transactions between consumers, typically facilitated by a third party. Online marketplaces like [[eBay]] and [[Etsy]] are examples of C2C platforms.
+* '''Consumer-to-Business (C2B)''': In this model, individuals sell products or services to businesses. An example is a freelance platform where individuals offer their services to companies.
+==Advantages of E-commerce==
+E-commerce offers several advantages over traditional retail:
+* '''Convenience''': Consumers can shop 24/7 from anywhere with an internet connection.
+* '''Wider Selection''': Online stores often offer a wider range of products than physical stores.
+* '''Price Comparisons''': Consumers can easily compare prices from different sellers to find the best deal.
+* '''Lower Costs''': E-commerce businesses can reduce costs related to physical storefronts and staffing.
+==Challenges of E-commerce==
+Despite its advantages, e-commerce also faces several challenges:
+* '''Security Concerns''': Protecting customer data and ensuring secure transactions is a major concern.
+* '''Logistics''': Efficiently managing inventory and shipping can be complex and costly.
-==Types of E-commerce Models==
+* '''Customer Experience''': Providing a seamless and engaging online shopping experience is crucial for retaining customers.
-There are four main types of e-commerce models that can describe almost every transaction that takes place between consumers and businesses.
-. '''Business to Consumer (B2C):''' When a business sells a good or service to an individual consumer (e.g. You buy a pair of shoes from an online retailer).
+==Technological Innovations==
+E-commerce continues to evolve with technological advancements:
-. '''Business to Business (B2B):''' When a business sells a good or service to another business (e.g. A business sells software-as-a-service for other businesses to use)
+* '''Mobile Commerce''': The rise of smartphones has led to an increase in mobile shopping.
-. '''Consumer to Consumer (C2C):''' When a consumer sells a good or service to another consumer (e.g. You sell your old furniture on eBay to another consumer).
+* '''Artificial Intelligence''': AI is used for personalized recommendations, chatbots, and customer service.
-. '''Consumer to Business (C2B):''' When a consumer sells their own products or services to a business or organization (e.g. An influencer offers exposure to their online audience in exchange for a fee, or a photographer licenses their photo for a business to use).
+* '''Augmented Reality''': AR is being used to enhance the online shopping experience by allowing customers to visualize products in their environment.
-==Advantages and Disadvantages of E-commerce==
+[[File:Automated online assistant.png|thumb|An automated online assistant can help improve customer service in e-commerce.]]
-E-commerce offers many ways retailers can reach consumers and conduct business without the need for a brick-and-mortar storefront. Today, it's almost economic suicide for any retailer not to be able to sell online. However, e-commerce also has its disadvantages.
-===Advantages===
+==Also see==
-* '''Faster buying process'''
+* [[Online shopping]]
-* '''Store and product listing creation'''
+* [[Digital marketing]]
-* '''Cost reduction'''
+* [[Payment gateway]]
-* '''Affordable advertising and marketing'''
+* [[Supply chain management]]
-* '''Flexibility for customers'''
+* [[Retail]]
-* '''No reach limitations'''
-===Disadvantages===
+==References==
-* '''Limited customer service'''
+{{Reflist}}
-* '''Inconvenient returns'''
-* '''Impersonal'''
-* '''Need for internet access'''
-==Future of E-commerce==
+==External links==
-The future of e-commerce is bright and growth will come from mobile platforms, personalization, social media analytics, omni-channel service, and sharing economy.
+* [https://www.shopify.com/learn/what-is-ecommerce Shopify: What is E-commerce?]
+* [https://www.investopedia.com/terms/e/ecommerce.asp Investopedia: E-commerce]
 [[Category:E-commerce]]
-[[Category:Internet]]
+[[Category:Retailing]]
-[[Category:Business]]
+[[Category:Internet terminology]]
-[[Category:Technology]]
-{{stub}}