E-commerce

E-commerce

The history of ecommerce started off with the first ever online sale: on the August 11, 1994 a man sold a CD by the band Sting to his friend through his website NetMarket, an American retail platform. The consumer purchased a product from a business through the World Wide Web—or “ecommerce” as we commonly know it today.

E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet and the transfer of money and data to execute these transactions. E-commerce is also known as electronic commerce or internet commerce. Electronic commerce plays on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange, inventory management systems, and automated data collection systems. E-commerce is in turn driven by the technological advances of the semiconductor industry, and is the largest sector of the electronics industry.

There are three areas of e-commerce: online retailing, electronic markets, and online auctions. E-commerce is supported by electronic business. Independent freelancers, small businesses, and large corporations have all benefited from ecommerce, which enables them to sell their goods and services at a scale that was not possible with traditional offline retail.

Models of E-Commerce

There are four main types of ecommerce 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 clothes from an online retailer).
• Business to Business (B2B) : When a business sells a good or service to another business (e.g. A business sells application-as-a-service for other businesses to use) .
• Consumer to Consumer (C2C) : When a consumer sells a good or service to another consumer (e.g. You sell your old car on Olx to another consumer).
• 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).

Advantages of E-Commerce

• E-commerce acts as a pathway for the sellers with a global reach. They remove the barrier of place. Sellers and buyers can confront each other in the virtual world, without the hindrance of location.
• E-Commerce will remarkably minimize the transaction cost. It pulls out many fixed costs of maintaining brick and mortar shops. This allows the companies to enjoy a much higher profit margin.
• It provides quick delivery of goods with very minimal effort on part of the customer. Customer complaints are resolved at the earliest. It acts as a savior of time, energy and effort for both the consumers and the company.
• Its 24×7 service gains the trust and interest of the customers as they can shop according to their suitable free time.
• Electronic commerce plays the direct communication channel role for the customer and the business. Thismakes wayfor quick communicationand transactions.

Disadvantages of E-Commerce

• The start-up costs of the e-commerce portal are very high. The setup of the hardware and the software.
• At times, e-commerce can feel impersonal. So it lacks the warmth of an interpersonal relationship which is important for many brands and products.Eg. Interior designing.
• Security is another area of concern. Credit card theft, identity theft etc. remain big concerns with the customers.
• Then there are also fulfillment problems. Even after the order is placed there can be issues with shipping, delivery, mix-ups etc. which leads to unhappy and dissatisfied customers.

Trisya Infotech renders robust ecommerce portal by creating cutting-edge online services with our proficiency in the latest technologies. We build ecommerce websites that are highly user-friendly and entail all necessary features to simplify your task to delight your customers and boost your business.