What is ecommerce business

what is ecommerce business and what is benefits of ecommerce?

What is ecommerce business?

ecommerce business

ecommerce business

Ecommerce (electronic commerce) or internet commerce is the activity of buying and selling goods and services using the internet and involves the transfer of money and data when making these transactions. according to Wikipedia, e-commerce timeline begins in 1971 when Arpanet arrange sales between Stanford Artificial Intelligent Laboratory with Massachusett’s Institute of Technology later describe as “the seminal act of e-commerce”. e-commerce has so many benefits, among the benefits of ecommerce is that the audience of the market or the consumer can be expanded because e-commerce can eliminate geographical limit.

What is the advantages of ecommerce? In global marketing, you can increase sales and minimize costs in promotion, inventory, marketing, and process in online sales. Ecommerce one of the business tools to improve your online sales marketing. The opportunities you have to expand your sales area are quite huge. This can be a segmentation way for online sales because each region will have a different marketing capacity and demand then you can maximize sales with a specific target.

Efficiency in the transaction speed of e-commerce is more liked by many entrepreneurs because the inventory will always exist because of the rapid time and delivery using the delivery services simplified. Online business traffic currently relies on speed and transaction accuracy if you are still using a traditional business then you will be left behind by your competitors.

E-commerce can grow your business in an inclusive manner of trading activities, when you are consistent in this case your customers will feel comfortable and continue to be interested in your business, it will be your profit in the future.

Types of e-commerce

Basically, there is 6 type of e-commerce based on the subject that will involve in the transaction, which is :

  • Business to Business (B2B)
  • Business to Consumer (B2C)
  • Consumer to Consumer (C2C)
  • Consumer to Business (C2B).
  • Business to Administration (B2A)
  • Consumer to Administration (C2A)

The difference between this type are :

Business to Business

This type of e-commerce usually only involves inter-company transactions, both goods transactions and service transactions

Business to Consumer

This e-commerce occurs because companies open access to the sale of goods or services to end users or to the public as the consumer of the product or services, example of this type ecommerce is a webshop that promotes and sale of the goods and product that the company sell

Consumer to Consumer

This ecommerce type occurs because of the supply and demand between two customers or more and this type usually need to Bridged by a marketplace where the supply and demand meet

Consumer to Business

This ecommerce happens because customers sell their products or services to businesses or corporate, for example, if we make some design work or research, and we can choose to sell to the companies that need the results of our creation.

Business to Administration

Namely the type of ecommerce that occurs because our business related to Public Administration this type usually a complex type involving various services and quite a large number such as employee, legal document, etc

Consumer to Administrative

E-commerce of this type involves consumers As end users with public administration. example of this ecommerce type is distance learning, taxes payment, Payment of health services, etc

Benefit and limitation of e-commerce

benefits of ecommerce

benefits of ecommerce

what is benefits of ecommerce?

As described above that e-commerce can eliminate geographical limit, the other advantages of ecommerce are we can gain more new customers with adding search engine promotion to our product or promotion to social media such as Instagram, twitter, facebook and etc, lower costs for rent a place because we don’t need a very strategic place to save our product, comfortable and easy in making transactions, realtime transaction, secure and the for the customer side the advantage of ecommerce is that transaction can be executed any time, no need to leave the house and no need to face traffic jams if you want to buy an item

Advantages of e commerce to business

The advantages of e commerce to business

  • No Geographical Limits
  • Saving time because consumer can easy search, choose, and pick the product that we provide
  • More affordable costs
  • Getting New Consumers (Via Search Engines)
  • Open Business All The Time
  • Looking for Faster Products
  • Facilitate Business Communication
  • Provide Price Comparison

Limitations of ecommerce

The first limitation of ecommerce is Doubts about authenticity and security, especially if we apply the payment system at the end cash on delivery (COD) because it is feared that there are no payments or fraud

The second limitation is Product Shipping time, where maybe some customers may be mainly some items that may have never carried out cross-country e-commerce transactions because there are a number of rules such as Customs checking, quarantine products, and others

The third limitation is scammers who cheat using fake credit cards or using a financial system that turns out to be invalid

The fourth limitation is the problem with the existence of a website system that we implement sometimes exposed to hacker attacks or databases that display fatal errors because it is very important to always maintain the stability and security of our website

The fifth limitation of ecommerce is impatience of the customer is also one of the limitations of commerce especially when we apply pre-order products for 5 days or 10 days

The sixth limit is e-commerce competition because with the many promotions between sellers on the internet, the level of competition becomes quite tight, the price war is very high and also the discount war becomes one of the points that make the profits smaller

if you like this article about ecommerce don’t forget to check out article about how to find funding for your small business here


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