You must have heard about Amazon or Flip-kart which are E-commerce websites, but have you ever wondered what E-commerce is or what the word means, how many of it There are types, how does it work and what are its advantages and disadvantages, etc.
Certainly, online business is very popular today, but despite it being so popular, in fact, there are still many people who do not know what it is.
The main objective of this article is to give you accurate and better information about E-commerce so that there is no doubt in your mind about what is E-commerce or its business type. The next time someone asks about it, explain it well. Then you should be ready to learn all about e-commerce.
Table of contents:
Table of contents:
- What is e-commerce?
- History of e-commerce
- Type of e-commerce
- Advantages of e-commerce
- Disadvantage of e-commerce
- E-commerce platforms
- Examples of e-commerce
- what have you learned?
What is E-commerce?
E-commerce is also known as electronic commerce or internet commerce. It is a process of buying and selling products or services, transfer of money, and electronic means ie exchanging data over the Internet. This network allows people to trade without distance and time constraints.
History of E-commerce?
One afternoon on August 11, 1994, Phil Brandenberger started his computer and bought a Sting CD from NetMarket (an online store) for $ 12.48, which was paid by credit card. The name of this CD was’ Ten Summoners’ Tales’.
This incident created history. And even today it is considered to be the real e-commerce transaction. Because during this online transaction, Encryption Technology was used for the first time in online shopping. Which has become common today?
However, e-commerce was also born at the time of the Internet itself. Because of universities, educational institutions, researchers. Scientists started exchanging their research papers and educational material. This process had taken its steps after the formation of ARPANET.
During 1960, businesses started sharing their business documents with other companies using the Electronic Data Interchange (EDI). Then in 1979, the American National Standards Institute created universal standards for sharing business documents, known as ASC X12.
After this, the birth of electronic companies like Amazon, Flipkart, eBay, etc. started. And the e-commerce revolution started.
The technology started with document sharing is now in our hands. And we can buy everything available online in one click from any corner of the world. This is the real strength of e-commerce.
But, during this historical event sequence, a lot of incidents took place, and new platforms, tools, technology emerged, which is being given in a brief description in the E-commerce Timeline.
In making this E-commerce history timeline, information available on Wikipedia and BigCommerce has been used.
E-commerce History Timeline
1969 – CompuServe was established
1979 – Michael Aldrich invented electronic shopping
1981 – Thomson Holidays UK launches first B2B online shopping system
1982 – France Telecom launches Minitel to take online orders
1982 – Boston Computer Exchange launches its first e-commerce platform
1990 – Tim Berners Lee wrote the first web browser code
1992 – Book Stacks Unlimited launched the first marketplace for books, whose website was www.books.com. Now, this website has become www.barnesandnoble.com.
1994 – Netscape launched Netscape Navigator
1994 – Ten Summon Competing Tales from NetMarket becomes the first secure purchase purchased via credit card
1995 – eBay and Amazon online shopping website started
1998 – PayPal launched as an online payment system
1999 – Start of Alibaba.com
2000 – Google Launches AdWords
2005 – Amazon launches Amazon Prime service for its customers
2005 – Esty Marketplace opened to buy and sell vintage Goods online.
2009 – BigCommerce online storefront platform started
2009 – Square, Inc. Started off
2011 – Google Wallet launched for online payment system
2011 – Facebook launches advertisement named Sponsored Stories
2011 – Start of Stripe
2014 – Apple Pay launched for mobile payment
2014 – Jet.com launched
2017 – Instagram Shoppable Posts introduced
2020 – Jio Mart launched by Reliance Retail.
Types of E-commerce?
E-commerce is mainly driven by seven Models of E-commerce. Whose description is as follows.
• Business to Business (B2B)
• Business to Consumer (B2C)
• Consumer to Consumer (C2C)
• Consumer to Business (C2B)
• Government to Business (G2B)
• Business to Government (B2G)
• Consumer to Government (C2G)
Business to Business Model
When an online business is done between more than two business companies, institutes, agencies, it is called Business to Business Model (B2B).
Because in this process the end consumer is not you or us. Rather, there is another business which buys goods of its need online from another business. This business model consists of producers, wholesalers, and retailers.
Merchants here are mostly Purchases goods, repackaging goods, and services include software and legal advice. But this is not limited to this.
Business to Consumer Model
B2C is the most popular form of e-commerce. When you order a book for yourself from a publisher, then this shopping is included in this business model. Because here the transaction is directly between business to consumer.
Consumer to Consumer Model
This model is the business model of the beginning. In this e-commerce business model, a customer performs an online transaction with another customer. You get to see some similar models on eBay, Amazon. Where a customer sells his old goods and new goods directly to the customer.
Consumer to Business Model
When a customer sells his goods or services directly to a business, this e-commerce model is called C2B.
A photographer, singer, comedian, dancer, YouTuber, etc. can charge product promotion charges from the business according to their audience and can also provide some of their services on a royalty basis.
All these works are covered under the Consumer to Business Model. Professional people earn a lot of money from this business model.
Government to Business Model
The best example of this business model is e-governance. Under which governments or administrative institutions make their services available to business institutions through the internet.
The list of these services may vary by country. Legal documents, registration, social security schemes, job provision, and other business services are being provided by the governments online. Due to which both the time and capital of government and business establishments are saved.
Business to Government Model
When governments buy some goods or services of their need online from business, it is called B2G e-commerce model. For example, if a local government agency has to install CCTV Cameras in its jurisdiction, then it buys a camera from a camera store. And they can also give the contract to get them attached to any business. All these works come in this model.
The best example of this in the country of India is Babaramdev’s popular Swadeshi Pantjali brand (private trade), which is selling its products to the Indian Army (a government body). This business model is under B2G only.
Consumer to a government model
E-governance service is also applicable here. Because even a common citizen has a lot of government work. For which he has to go round government offices.
But when government services become available online, the customer can directly avail of these services through a website or app. E-Mitra Seva, Umang, e-filling, DigiLocker, Fastag, etc. are examples of this model.
Advantages of E-commerce?
The biggest advantage of e-commerce is that you do not have to go to the shopkeeper or store to buy goods, rather the goods will come to you. You just order and pay and choose the delivery address and the purchase is done.
But apart from this, there are many other benefits to a customer whose details are as follows.
1. Global Reach
With the help of e-commerce, you reach all over the world. If you are a seller then there is no need for you to find new customers. Because the whole world is ready to be your customer. And stores are available for the customer to sell goods all over the world. He can buy anything of his choice by looking at it comfortably and by knowing it.
2. Cheap Rate
The operation of e-commerce is also not equal to a grocery store if you create your own storefront online. You can start an online shop without spending a rupee. Therefore, customers are available to buy more cheap products.
Because companies do not have to resort to middlemen. Their cost has a direct impact on the cost of the product. Because their need is over. Hence the actual price of the product decreases. And if you do not have to go to the shop to buy goods, then you can also add the savings of rent and petrol and diesel.
3. Easy Shopping
Buying goods online is easy. People themselves have admitted that instead of buying goods from the shop, they find it easier to buy goods online.
And this method is effective for those who find it difficult or uncomfortable to visit stores, malls. He can order his favorite things from the home, office, college, etc. from the comfort of his choice and can also get it to his choice.
Like street or mall, no opening and closing time of the online store is fixed. You can do 24 × 7 shopping. This shop is open 365 days a year.
5. Fast Checkouts
If you go to a store, then you will have to wait for the settlement of the already reached customers, after this your number comes. And if you want to buy more items, then you may have to visit many stores. Which can prove to be a tiring task?
But during online shopping, you do not need to go anywhere because you can order all the goods from one place and there is no need to line up.
If you are buying more than one item, you can find the product for yourself using the search feature, browse through the information of each item and add it to search for the next item.
6. Personal Recommendations
The online store recommends the product for you based on your search behavior and old shopping. And suggests products according to your likes and dislikes. This facility is not available at a physical store.
Disadvantages of E-commerce?
Just as the coin has two sides. In the same way, there are advantages of e-commerce, so there are some disadvantages as well. Which can get the customer into many troubles?
No real knowledge of the product
When purchasing an item from a general store, we can examine the item in several ways. And can also take advice from friends.
However, this facility cannot be provided while purchasing goods from online stores. Because you cannot check a sofa from a computer or a mobile screen. Which is written by the seller about that item. We have to buy goods depending on it.
No Self Satisfaction
When the customer touches the item with his hands and looks and examines it with eyes, then the satisfaction he gets is not possible with the online purchase. Because you do not get the convenience of touching and seeing.
Yes, you can be happy to see photos of the product. This is the truth!
Need for Tech Knowledge
If you want to do online shopping then you need to be digitally literate. If you do not have practical knowledge of computers, internet, net banking, etc. then online shopping is useless for you.
E-commerce is most prone to fraud. Because online fraud is much easier and more accurate. It is not recognized by a common user.
Therefore it is considered unsafe. The growing graph of cybercrime makes it more robust. Phishing, keyloggers, duplicate URLs, etc. are the means by which online fraud is committed.
Lack of Customer Service
While shopping from the store, you can solve many doubts in minutes. You can meet the cashier, clerk, manager, and ask questions directly. But this facility is not available on an online store and you will have to wait for a certain time if you want to answer any question.
Wait for Delivery
You paid and your goods. But this is not the case at online stores. Even after paying, you have to wait for the goods. Which creates anger in customers. And some business has made it a means of earning extra money. Which is also messing with the rights of the customer.
You have learned that through e-commerce, goods and services are made through the Internet. But how?
Have you ever wondered how to become an online store?
Let us tell you.
Actually, e-commerce information technology is done using many tools, and many different tools are used to build an online store. Through which online stores are made. We can divide online stores into two categories.
• Online Storefronts
• Online Marketplaces
1. Online Storefronts
Merchants usually create their online store through a website. This is the most direct and easiest way to build an online store. And most businesses are doing their business this way.
Merchants make their online stores using shopping carts, payment gateways, and e-commerce tools. And sell their goods and services. There are many platforms available for making online storefronts. Some popular platforms are given below.
Demandware – It is a cloud-based e-commerce solution provider.
Oracle Commerce – It is a B2B and B2C e-commerce solution provider.
Shopify – If you were thinking of creating a storefront easily, Shopify can provide this facility for you. Because its drag-and-drop builder has built its own e-commerce store like decorating cards. Shopify provides templates, inventory tools, buttons, payment solutions, etc. in one place.
Magento – This is the most popular and popular e-commerce solution platform. Which provides merchants with powerful features, easy customization, add-ons. Also, a group of experts, developers, and agencies are available for you.
BigCommerce – This platform provides great features for B2B e-commerce. Through this, an online store can be made very easily. In addition, it can also be sold on a blog, social media platform.
WooCommerce – If you want to convert a WordPress blog into an online store, WooCommerce can help you with this. It is an open-source e-commerce tool that provides the necessary features to transform a WordPress site into an online store. But site hosting, domain name, SSL, payment gateway, etc. have to handle the site honor. Other platforms do not have this mess.
Drupal Commerce – If you use Drupal Platform then you can create your online store using this tool.
Instamojo – If you are looking for Indian solutions, Instamojo can help you. With the help of this Instamojo tool, you can create your own storefront and can also take payments directly. Instamojo provides the facility to create a built-in product store for free. Just you have to pay some fee per transaction. Which is equivalent to a tea.
2. Online Marketplaces
The online marketplace acts as a middleman. Online marketplaces establish communication between the merchant and the customer and provide a place (online marketplace) to different merchants. The customer has no direct relationship with the merchant. There are many such marketplaces available, through which crores of e-commerce business is being done today.
Name of some popular marketplaces
Amazon – Introducing Amazon company, which claims to be the world’s largest e-commerce marketplace, is not obedient. It has established its identity among customers around the world. And Mars is doing the work of sharing the happiness by delivering a-z product to the people.
Flipkart – This Indian company, like Amazon, is providing a worldwide market based on indigenous technology to Indian merchants.
Etsy – Handmaids, vintages, and some rare items can be bought and sold in this marketplace.
Fiverr – This is a freelancing marketplace that works to provide its services to professional people. Here a graphic designer, web developer, etc. can join this marketplace and provide their services.
Indiamart – This is an Indian marketplace that acts exactly like Alibaba.
eBay – It is one of the early companies of e-commerce. Which is providing a marketplace for buying and selling old goods with new goods. Its business model is more based on C2C.
Alibaba – It is a Chinese e-commerce company. Which provides marketplaces for wholesalers, manufacturers, suppliers, importers/exporters.
Example of E-commerce
E-commerce can happen in various ways. And traders can provide services ranging from physical products to writing letters. Below are the various forms of e-commerce.
This is called retail trade. The way you buy goods from neighborhood grocery stores, the same is done in this business model. There is no middleman. Retailers have direct contact with the customer.
Items are sold in groups in wholesale trade. Customers are retailers here. Because there is no relation with the real consumer.
Selling a product whose producer is someone else and someone else is about to deliver it. That is, the seller’s contact is only with the customer, he does not manufacture the product himself. Rather sells products from another manufacturer. Dropshipping has become one of the emerging businesses nowadays, especially among the people who want freedom from 9-5 jobs, are taking this business.
Buying or using licenses for downloadable goods, templates, courses, graphics, photographs, paintings, e-books etc. is included in this business. Many professionals are making great use of this business model.
Repayment of a product or service in a given time interval is called a subscription. This approach is mostly tried on the Business Model with Software Edge a Service (SAAS). With this, platforms like online magazines, e-papers, subscription forms, etc. use this business model.
Crowdfunding is called taking money from people before the product comes to market. This is great and tried out the principle for start-up businesses to raise money in the initial phase.
It involves selling any goods that have a physical existence. During this time the order of the product is taken, then the goods are delivered to it.
When a professional charges in exchange for his / her skills, then it is e-commerce included in this business model.
what have you learned?
In this article, we have given you complete information about e-commerce. Did you know what e-commerce is? To go into detail about its different types, the business model, history, and marketplace and storefront of e-commerce. We hope that your all questions are cleared with this article.
We hope this article is E-commerce? You must have liked it and you got to know a lot of new things in it.
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