E-commerce is the practicing of buying and selling goods over the internet. Ideally, it is similar to the conventional way where sellers and buyers met to transact only that this time they meet each other online. In this regard, the customer only needs to get to the seller’s site and pay for what they want. At a glance, the whole process looks easy from the customers’ end considering that they only need to find what they want, pay for it, and have it delivered.
To an entrepreneur, there are many things involved in making this a success. For instance, one needs to set up a site, have the goods, secure the payment a system, and find a way of availing the products to the customers.
Main types e-commerce businesses
Business to business (B2B)
This form of business has been around for some time now. In this form of e-commerce, the transacting parties are ideally trading partners. This type of business revolved around automated transactions between different business entities.
Business to consumers (B2C)
This is has been seen to be one of the most remarkable developments in this century. It is growing rapidly with every passing day. B2C involves making direct sales to the consumer over the internet. As such, the transactions are not limited to any provided they are legal. You can sell/buy services or tangible goods.
Advantages of e-commerce
100% business uptime
There are no set working hours in e-commerce. This is attributed to the fact that most of these stores are up and running 24/7. They never take breaks. This is good for both the customer and seller.
With an online store, you can never be limited by geographical boundaries. You can sell to anyone irrespective of where they are. An e-commerce site can be accessed from the most remote part of the world. As such, global access comes with more opportunities to the business owner(s).
E-commerce is an economical and cost efficient way of doing business. You do not have to rely on intermediaries, incur unnecessary costs, or having a large workforce. Reduced costs of operation are good for both the customers and the business as well. Moreover, automation of transaction without human intervention makes it even better.