Ecommerce Basics and Types

Definition of Ecommerce

• Buying and selling of goods or services over the internet.
• Includes various business models such as B2B, B2C, C2C, and C2B.

Types of Ecommerce

1. Business to Consumer (B2C)

   • Direct sales from businesses to consumers.
   • Examples: Amazon, Walmart.

2. Business to Business (B2B)

   • Transactions between businesses.
   • Examples: Alibaba, Salesforce.

3. Consumer to Consumer (C2C)

   • Transactions between consumers, often through third-party platforms.
   • Examples: eBay, Craigslist.

4. Consumer to Business (C2B)

   • Individuals selling products or services to businesses.
   • Examples: Freelancer platforms, stock photo sites.

Key Components

• Website: The online platform where transactions occur.
• Payment Processing: Handling transactions electronically (e.g., credit cards, PayPal).
• Security: Protecting customer information (SSL certificates, PCI compliance).
• Logistics: Management of inventory, shipping, and delivery.

Benefits of Ecommerce

• Global reach: Businesses can attract customers worldwide.
• Lower operating costs: Reduced need for physical retail space.
• 24/7 availability: Stores can operate around the clock.
• Personalization: Tailored marketing based on customer data.
• Wider selection: Customers can browse a vast array of products.

Challenges of Ecommerce

• Competition: High competition among online retailers.
• Customer trust: Building credibility with new customers.
• Logistics and shipping: Managing delivery times and costs.
• Technology reliance: Dependence on digital infrastructure.
• Cybersecurity: Protecting against data breaches and fraud.

Trends in Ecommerce

• Mobile commerce: Increasing purchases via smartphones and apps.
• Social commerce: Selling directly through social media platforms.
• Subscription models: Regular delivery of products for a fee.
• Augmented reality: Enhancing shopping experiences with virtual try-ons.
• Sustainable practices: Eco-friendly products and shipping options.

Important Metrics

• Conversion Rate: Percentage of visitors who make a purchase.
• Average Order Value (AOV): Average amount spent per order.
• Cart Abandonment Rate: Percentage of shoppers who leave without purchasing.
• Customer Lifetime Value (CLV): Total revenue expected from a customer over their relationship with a business.

Ecommerce Definition

• Ecommerce involves buying and selling goods or services online.
• It encompasses various business models, including B2B, B2C, C2C, and C2B.

Types of Ecommerce

• B2C (Business to Consumer): Businesses directly sell to consumers (e.g., Amazon, Walmart).
• B2B (Business to Business): Transactions occur between businesses (e.g., Alibaba, Salesforce).
• C2C (Consumer to Consumer): Consumers sell to other consumers, often facilitated by third-party platforms (e.g., eBay, Craigslist).
• C2B (Consumer to Business): Individuals sell products or services to businesses (e.g., Freelancer platforms, stock photo sites).

Key Ecommerce Components

• Website: The online platform where transactions take place.
• Payment Processing: Electronic handling of transactions (e.g., credit cards, PayPal).
• Security: Protecting customer information with measures like SSL certificates and PCI compliance.
• Logistics: Managing inventory, shipping, and delivery processes.

Ecommerce Benefits

• Global Reach: Businesses can attract customers from around the world.
• Lower Operating Costs: Reduced need for physical retail space.
• 24/7 Availability: Online stores operate continuously.
• Personalization: Tailored marketing based on customer data.
• Wider Selection: Customers can browse a wide range of products.

Ecommerce Challenges

• Competition: Intense rivalry among online retailers.
• Customer Trust: Building credibility with new customers.
• Logistics and Shipping: Managing delivery times and costs effectively.
• Technology Reliance: Dependence on digital infrastructure for business operations.
• Cybersecurity: Protecting against data breaches and fraud.

Ecommerce Trends

• Mobile Commerce: Increasing purchases through smartphones and apps.
• Social Commerce: Selling directly through social media platforms.
• Subscription Models: Regular delivery of products for a recurring fee.
• Augmented Reality: Enhancing shopping experiences with virtual try-ons.
• Sustainable Practices: Offering eco-friendly products and shipping options.

Important Ecommerce Metrics

• Conversion Rate: Percentage of website visitors who make a purchase.
• Average Order Value (AOV): Average amount spent per customer order.
• Cart Abandonment Rate: Percentage of shoppers who leave a website without completing their purchase.
• Customer Lifetime Value (CLV): Total revenue anticipated from a customer over their relationship with a business.