WHAT IS E-COMMERCE !
E-commerce, also known as electronic commerce or internet 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.
Type of E-Commerce:
There are four (4) Type of e-commerce Models:
Business to Consumer (B2C): When a Business sells a good or service to an individual customer (e.g. you buy a pair of shoes from an online retailers.)
Business to Business (B2B): When a business sells a good or services to another Business (e.g. A Business sells software as a service for others business to use).
Consumer to Consumer (C2C): When a Consumer sells a good or service to another consumer (e.g. you sell your old furniture on e-bay to another consumer.
Consumer to Business (C2B): When a consumer sells their own products or services to a business or organization (e.g. an Influenced offers exposures to their online audience in exchange for fee, or a photographer licenses their photo for business to do.
Examples of E-Commerce:
E –commerce can take a variety of forms involving different transnational relationships between Business and consumers as well as different objects being exchanged as part these transactions.
RETAIL: The Sale of 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 customers.
DROP-SHIPPING: 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 being available in order to raise the startup Capital necessary to bring it to Market.
SUBSCRIPTION: The Automatic recurring purchase of a product or service on a regular basis 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 provided in exchange for compensation. The Service providers ‘time can be purchased for a fee.
MAJOR BENEFITS OF E-COMMERCE BUSINESS FOR RETAILER’S AND CUSTOMERS.
Demand of Online Purchasing Increasing day by day. In the United States of America (USA) more than 60% people are purchasing Goods on line. Here in Our country BANGLADESH also E-Commerce is expanding tremendously.
CONVENIENCE & EASINESS: E-Commerce becomes preferred ways of Shopping because of its easiness and convenience. They are allowed to buy products or services from their Home at any time of day or night.
PRODUCT DATA SHEETS: Consumers get description and details from an online product cataloger. For customers it is Important to get information about the product no matter whether in time of Day or Day of the week.
ATTRACT NEW CUSTOMERS COMPROMISE WARRANTY INFORMATION: Consumers choose warranty Information with product description and data sheet or providing it form within E-Commerce shopping cart.
DECREASING COST OF INVENTORY MANAGEMENT: With E-Commerce business the suppliers can decrease the cost of managing inventory of goods than can automate the Inventory management using web –based management system .Indirectly they can save their operational costs.
KEEP EYE ON CONSUMERS’ BUYING HABIT: The best thing is E- Commerce retailers can easily keep a constant eye on consumers ‘buying habits and interests to tailors their offer suit to improve your ongoing relationship with them and build long relationships.
ALLOW HAPPY CUSTOMERS TO SELL YOUR PRODUCTS: You can easily increase your sales as new customers find that your products are good and effective. Make sure that mention your clients testimonials, reviews, and product ratings as such things can help your new customers’ to purchase your products.
SELLING PRODUCT ACROSS THE WORLD: If you running a physical store, it will be limited by the Geographical area that you service, but with an E- Commerce website you can sell your products and service across the world. The entire world is your playground where you can sell your complete range of products without any Geographical limits.
STAY OPEN 24 HOURS # 7/ 365: Very Important benefits that E-Commerce merchants can enjoy is Store Timings are now-24/7/365 as they can run E-Commerce websites all the time.
ECONOMY: Now you don’t have to invest your money in the physical store, Insurance or Infrastructure as all you need is a wonderful Idea unique products and well-designed website to reach you. Precious customers to sell your products and services. We can say that this makes E- Commerce a lot more economical & reasonable.
DECREASE COSTS: E- Commerce can reduce the cost your business. These are mentioned bellow the costs.
Advertising & Marketing costs: If you opt E- Commerce you don’t have to spend money on advertising and Marketing.
Eliminate Travel Cost: Now customer do not have to Travel Long distance to reach their desired stores as E-Commerce allows them to visit the E-Store any time without travelling. With few mouse clicks customers can make their purchase and have wonderful shopping experience.
Personnel : Automation of check out , billing, inventory management, payment, and others type of operational costs lower the total number of employees that your require to run your E-Commerce Business.e