Generally, commerce refers to buying and selling goods and services physically. That means you should need to meet the seller and buyer in order to buy or sell the goods and services.
E-commerce refers to electronic commerce as the reverse of physical or traditional commerce. It is called modern commerce since it is a newly developed concept and perform by using new technology. E-commerce refers to performing your business operational activities through electronic media. Thus, the process of buying and selling of goods and services with the help of the internet is termed electronic commerce or e-commerce.
Seller or manufacturing company provides each and every detail of information regarding their product and services so that buyers do not feel any confusion while searching for a product on the internet. The significance of online business is the buyer should not need to create any kind of questions regarding the product while making a purchase decision. Seller provided the information related to the product, such as price, quality, size, color, design, brand, etc., and also provide a sample pic on their websites or social media page. Along with product details, sellers also to their official information like the name of the organization, contact number, email address, etc.
Electronic commerce is a modern concept in business and has provided kinds of benefits for business organizations, buyers, and also for society. However, both buyers and sellers need to register with online sites to perform business transactions.
Types of E-commerce
E-commerce is classified according to the business model:
Business to business (B2B) model
Business transactions conducted between business organizations through electronic media with the help of a worldwide network are known as the business-to-business e-commerce model. Generally, this model is followed by business organizations and deals with relationships between them.
Online websites adopting the B2B business model sell its product to one another business sites for business propose. For example, a bottle manufacturing company sells its product to a medicine or oil manufacturing company. A website like www.thamel.com is an example of an e-commerce site that adopts a B2B business model.
Business to consumer (B2C) model
Business transactions conducted between business organizations and final customers over the internet are known as the business-to-consumer business models. This model is adopted by any manufacturing company and retailer who seeks to sell their product directly to the consumer who bye the product for their final proposes.
The online websites that follow the B2C business model display product information in an online catalog and store it in a database. The B2C model also involves services like online banking, travel services, ticket booking, health service, and so on. Online websites like www.daraz.com and www.amazon.com are popular sites for this model.
Consumer to consumer (C2C) model
The C2C business model is a type of business model that involves transactions between two or more customers. In this model, one customer sells his/her product to another customer directly. If any consumer wants to sells his/her property like buildings, vehicles, etc., they contact the number of customers through websites that adopt C2C business model. Websites www.bazee.com, www.ebay.com, etc., are examples of C2C business model sites in Nepal.
Consumer to business (C2B) model
The E-commerce model involves transactions between customers and business organizations, but customer sells their product to the business organizations. In the C2B model, customers decide the value of a particular product or service rather than business organizations.
For example, if a web page developer develops an online site, he himself estimates the value for that if any organization has a need and wants to buy. Websites like www.monster.com is an example of a C2B e-commerce model in Nepal where a customer can provide a service or service to the business organization that seek for.
Benefits of E-commerce
E-commerce has occupied wider scope in the business sector and has been beneficial for not limited areas. All organizations, consumers, and society have equally benefited from online business.
Benefits to organizations
- Facilitates to expand business worldwide.
- Cutting off stock storage costs.
- Helps to understand customer requirement and their expectation in the national as well as international market.
- It helps to reduce costs like processing, distributing, and paper-based activities.
- Helps to enhance brand image and better relationships with customers in the market.
- Helps to reduce telecommunication costs since information is shared through email and other social media.
- It helps to know about the level of competitors in the market, and thus organizations can take alternative actions.
Benefits to consumer
- Save time for the consumer since e-commerce allows them to avoid physical contact with sellers.
- Shop is open 24 hours in a day; consumers can order products at any time.
- Provides facilities like quicker delivery of products and services.
- Allow consumers to select products from more options.
- A consumer can review others’ comments and what others are buying before making a purchase decision.
- Consumers can receive comments regarding product detail in a second and can put his/her comment regarding the product.
Benefits to society
- Create job opportunities, especially for women who have been enabled to go for workshops.
- E-commerce helps to reduce the cost of products so normal people can be offered such products.
- Helps to improve the life standard of people in rural areas people by delivering products from urban areas.
- Government can also deliver public services like health care, educational service, social service etc. At a reduced cost.
Limitations of E-commerce
- Political and legal issues
- Lack of skilled manpower
- Lack of capital requirement in a country like Nepal
- Lack of physical contact between buyer and seller
- Possibility of low-quality product
- Uncertainty and lack of information
- System failure may lead to the loss of the whole business process
- Difficult to enhance customer trust
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