Online commerce is any action carried out on the Internet and aimed at commercial activities. Electronic commerce has already become an integral part of our daily lives. We buy goods, pay for services, book tickets or hotels abroad, make money transfers online. Today, many companies use online commerce to promote and sell their goods and services, which allows them to expand their target audience and get another channel for advertising and sales.
Participants in e-commerce
The components are:
Participants are manufacturers of goods, amazon database suppliers, intermediaries, buyers, and government agencies.
Marketing processes – advertising, sales analysis, customer support services.
Networks and technologies – commercial and corporate networks, Internet, software.
Types of e-commerce
E-commerce has several segments formed based on the target audience and the tasks performed.
B2B (Business-to-Business)
Interaction is built between business representatives. Using special platforms on the Internet, they are engaged in concluding contracts between themselves and making transactions related to the supply, purchase and sale of goods or services.
B2C (Business-to-Consumer)
In this segment, the seller company is focused on a target audience that can purchase its products or services directly. The interaction between the company and the end consumer can be carried out offline and online. This is convenient for users due to the ability to order products with home delivery from a wide range. The business also benefits from using the online commerce system, as it is possible to reduce costs by saving on rent or maintenance of retail and warehouse space.
B2G (Business-to-Government)
The interaction is built between business and government. In this segment, contracts for large sums and transactions are concluded through competitions and tenders.
C2C (Consumer-to-Consumer)
The most popular sales system, in which only individuals participate. Here, some people sell goods or offer their services, and others buy them using search ads. This system is far from a real business, since people usually use it to sell unnecessary things or earn money by providing various services.
G2C (Government-to-Citizens)
The main goal of the "e-government" concept is to provide citizens with access to important information collected on specialized online platforms. These services allow citizens to pay taxes, fines, register projects, obtain construction permits, apply for benefits, or obtain foreign passports.
C2B (Consumer-to-Business)
This business model assumes that consumers have the opportunity to set their own prices for the goods or services offered by the company. This approach to commercial activity implies closer interaction with consumers and joint consumption of services. The main interaction between the supplier and buyers occurs on the website.
G2G (Government-to-Government)
This segment of business relations involves government organizations that supply each other with products or provide various services. Their interaction is based on modern online technologies, which allows for significantly faster and simpler processes.
B2P (Business-to-Partners)
Commercial relations involve business representatives, a partner network or branches of a company.
B2E (Business-to-Employee)
Such commerce includes the exchange of goods and services between companies and their employees. These are relationships within an organization that are carried out using automated systems. This approach significantly simplifies control over business processes and the execution of corporate tasks. Interaction between employees is improved by using corporate databases.
B2B2С (Business-to-Business-to-Customer)
In this type , two types of interaction are combined: B2B and B2C . For example, a company selling a product ( B2B ), a warehouse where it arrives (B2B), a buyer who receives the product (B2C).
E 2 E ( Exchange - to - Exchange )
This type involves communication between sellers and buyers based on electronic exchanges.
Pros of e-commerce
Reduced Costs: Online trading allows business owners to optimize costs and improve operational efficiency.
Increase in target audience. Users began to actively buy goods via the Internet anywhere in the world.
Reducing the number of intermediaries. The company has the ability to carry out direct online trading operations with manufacturers, bypassing intermediaries.
Control over all processes. It is easy for sellers to analyze sales, evaluate the level of marketing and develop their business.
No territorial binding. With the help of e-commerce, you can trade from anywhere in the world.
Cons of e-commerce
Business depends on hardware, software, and the Internet. Slow Internet can become a serious obstacle to the successful development of an online business.
There is no legal regulation. And that is why it is not always possible to conclude transactions.
The problem of preserving confidential data.
The problem of preserving copyright. There is a huge amount of pirated products on the Internet, which forces you to take security measures to avoid losses when doing business.