What is E-commerce?
E-commerce, short for electronic commerce, refers to the process of buying and selling goods and services online. These transactions occur via websites, mobile apps, and online marketplaces like Amazon, rather than in physical stores. Here are some key points about e-commerce:
1.Definition: E-commerce involves the exchange of products or services between businesses, consumers, or both, facilitated through digital platforms such as websites, mobile apps, or online marketplaces.
2.Wide Range of Products and Services: Nearly every imaginable product and service is available through e-commerce transactions, including books, music, plane tickets, and financial services like stock investing and online banking.
3.Market Segments: E-commerce operates in several market segments:
- Business-to-Business (B2B): Transactions between businesses.
- Business-to-Consumer (B2C): Transactions between businesses and individual consumers.
- Consumer-to-Consumer (C2C): Transactions among individual consumers (e.g., online auctions).
- Consumer-to-Business (C2B): Consumers offering products or services to businesses (e.g., freelance work).
4.Disruptive Technology: E-commerce has significantly transformed traditional business models and distribution channels. It provides cheaper and more efficient ways for businesses to reach wider audiences.
5.Setting Up an E-commerce Business:
- Research the products/services you wish to sell, understand the market, audience, and competition.
- Choose a business name and legal structure.
- Set up an e-commerce site with a payment gateway (e.g., credit card payments or services like PayPal).
In essence, e-commerce is the digital counterpart of mail-order catalog shopping, enabling seamless transactions across the internet.
