Ecommerce Basics and Types

Study Notes

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

Business to Consumer (B2C)
- Direct sales from businesses to consumers.
- Examples: Amazon, Walmart.
Business to Business (B2B)
- Transactions between businesses.
- Examples: Alibaba, Salesforce.
Consumer to Consumer (C2C)
- Transactions between consumers, often through third-party platforms.
- Examples: eBay, Craigslist.
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.

Description

Explore the definition of ecommerce and its various types, including B2B, B2C, C2C, and C2B. Learn about key components that make ecommerce transactions secure and efficient. This quiz covers essential concepts for anyone interested in the online business landscape.