What Is Ecommerce? Types of Ecommerce

When talking about digital marketing you often hear about the term ecommerce. However, do you understand what Ecommerce is? How many types of ecommerce? . Is Ecommerce an E-business? How to distinguish these concepts? This article of ours will share with you the information about ecommerce.

          1. What is E-commerce?

Ecommerce or E-commerce full name is Electronic Commerce (also abbreviated as EC). This is a type of business model that allows businesses or individuals to conduct business over the Internet.

             The definition of E-commerce?

Or more simply, ecommerce is the commercial activities of goods or services through the Internet and other electronic means. These transaction activities such as buying and selling, advertising, ordering, delivery, payment, …

Currently, the Internet has grown significantly, becoming an indispensable part for people. Along with that, mobile devices are becoming more and more popular. The e-commerce industry is growing rapidly. Therefore, in order to keep up with the times, the implementation of commercial activities on the Internet is what businesses today are aiming for and focusing on.

          2. Different between E-business and E-commerce

Many people often confuse these two terms E-commerce and E-business with each other. In fact, these two concepts are different.

               2.1. E-commerce – electronic commerce

In essence, e-commerce is online buying and selling activities between parties. The exposed operating environment is focused on the outside. The goal is to reach more customers, sell goods and satisfy the needs and desires of customers about products and services.

               2.2. E-business – Electronic business

In terms of e-business, it is the activities through the use of the Internet and online technologies that generate business performance. The contact activity environment is focused on the inside. The purpose is to increase the benefits for the customer, whether profitable or not. Including operational processes in the business: online purchasing, materials management, sourcing, product development, data sharing between functional departments in the enterprise…

E-business is more complex than e-commerce, focusing on internal processes within enterprises, improving quality, efficiency, productivity and saving costs.

          3. Types of e-commerce

Based on the division into 2 groups of supply and demand, or between sellers and buyers, manufacturers and customers, e-commerce can be divided into many groups of types. Among them, the main and popular types include the following types:

               3.1. B2B: Business to Business

B2B model is a form of transaction, exchange and purchase between 2 or more businesses. For example, exchange, purchase and sell product management software services, servers, etc. between the selling enterprise and the enterprise wishing to buy. In addition, it can also be an exchange of goods and services between businesses and agents. This is the main form of commerce that brings in revenue for supply enterprises.

               3.2. B2C: Business to Consumer

Is a form of commercial transactions between businesses and final consumers, retail customers. Although it is the form of reaching the most customers, they are retail customers. So this is not a business form that brings the main source of income for the business.

               3.3. C2C: Consumer to Consumer

An exchange of goods and services between two or more consumers through a third party. A website or website that allows intermediary sales or online auctions.

               3.4. B2G: Business to Government

These are forms of transactions between businesses and the government via the Internet, but with non-commercial purposes. Includes public procurement, licensing, and other government-related activities. However, at present, the size of the B2G market is small and insignificant because the government’s buying and selling system on the Internet is still underdeveloped.

               3.5. Other types of e-commerce

In addition to the above 4 main types, there are some other types such as:

  • C2B: Consumer – Business. In it, consumers create value that businesses need and sell that value back to businesses.
  • G2G: Government – Government. Between different organizations in the government apparatus.
  • G2B: Government – Business. Online, non-commercial interaction for the purpose of providing information and consulting answers for businesses.
  • B2E: Business to Employee: Using the internal network to provide products and services to employees in the enterprise.

          4. What is the advantage and importance of Ecommerce?

               4.1. Unlimited on time and space

With the form of e-commerce, businesses can reduce or eliminate real estate costs, whether it is a large or small business. Enterprises can completely operate and manage operations from anywhere. Additionally, Customers can also order goods anywhere, without having to leave the comfort of their homes.

               4.2. Increase the opportunities to reach new customers

Because there is no location restriction, unlike with offline commerce, businesses and brands have more opportunity to contact more potential clients.

               4.3. Cost savings

E-commerce business uses lower costs than traditional business. Fees for renting offices, operating, etc. may not be needed or are needed very little. Therefore, businesses using this type of e-commerce business as the main type will save a lot of costs which increase market share standing in the market due to its competitive price.

               4.4. Convenient payment

With Ecommerce, shopping and payment becomes extremely fast and convenient. With a variety of forms of payment: cash, card, transfer, e-wallet, etc., customers and businesses can easily transact.