E-commerce Basics

Study Notes

Commerce

E-commerce

Definition: E-commerce refers to the buying and selling of goods and services over the internet.
Types of E-commerce:
1. B2B (Business to Business): Transactions between businesses, such as manufacturers and wholesalers.
2. B2C (Business to Consumer): Direct transactions from businesses to consumers, like online retail.
3. C2C (Consumer to Consumer): Transactions between consumers, facilitated by platforms (e.g., eBay, Craigslist).
4. C2B (Consumer to Business): Individuals sell products or services to businesses, such as freelancing platforms.
Key Components:
- Online Stores: Websites or apps where products are displayed and sold.
- Payment Gateways: Secure transaction processing systems (e.g., PayPal, Stripe).
- Logistics and Supply Chain: Management of inventory, shipping, and delivery services.
Benefits:
- Convenience: 24/7 access to products and services.
- Wider Reach: Ability to sell to a global audience.
- Lower Costs: Reduced overhead compared to traditional brick-and-mortar stores.
- Personalization: Use of data analytics to tailor user experience and recommendations.
Challenges:
- Security Risks: Cybersecurity threats including data breaches and fraud.
- Competition: High competition among online retailers.
- Customer Trust: Building trust in a virtual environment can be difficult.
- Logistical Issues: Managing shipping and handling efficiently.
Trends:
- Mobile Commerce (m-commerce): Increasing use of smartphones for shopping.
- Social Commerce: Selling directly through social media platforms.
- Subscription Services: Monthly or periodic delivery of products (e.g., streaming services, meal kits).
- Augmented Reality (AR): Enhancing online shopping experiences with AR technology for virtual try-ons.
Regulations: Must comply with legal standards regarding online transactions, data protection (e.g., GDPR), and consumer rights.
Future Outlook: Continued growth expected, driven by technological advancements and changing consumer behaviors.

E-commerce

Definition: Buying and selling of goods and services over the internet.

Types of E-commerce

B2B: Transactions between businesses, such as manufacturers and wholesalers.
B2C: Direct transactions from businesses to consumers, like online retail.
C2C: Transactions between consumers, facilitated by platforms (e.g., eBay, Craigslist).
C2B: Individuals sell products or services to businesses, such as freelancing platforms.

Key Components of E-commerce

Online Stores: Websites or apps where products are displayed and sold.
Payment Gateways: Secure transaction processing systems (e.g., PayPal, Stripe).
Logistics and Supply Chain: Management of inventory, shipping, and delivery services.

Benefits of E-commerce

Convenience: 24/7 access to products and services.
Wider Reach: Ability to sell to a global audience.
Lower Costs: Reduced overhead compared to traditional brick-and-mortar stores.
Personalization: Use of data analytics to tailor user experience and recommendations.

Challenges of E-commerce

Security Risks: Cybersecurity threats including data breaches and fraud.
Competition: High competition among online retailers.
Customer Trust: Building trust in a virtual environment can be difficult.
Logistical Issues: Managing shipping and handling efficiently.

E-commerce Trends

Mobile Commerce (m-commerce): Increasing use of smartphones for shopping.
Social Commerce: Selling directly through social media platforms.
Subscription Services: Monthly or periodic delivery of products (e.g., streaming services, meal kits).
Augmented Reality (AR): Enhancing online shopping experiences with AR technology for virtual try-ons.