If I say, every business trend has changed a lot. The reason is that business owners, as well as customers mindset, have been altered, and both’s expectations have reached a different extent. Every industry, every business person wishes to go online for increasing visibility and better customer experience.
Whether you are into an international, domestic, or local business, you should list your business online, know why & how? Almost every sensible product and service is available through e-commerce transactions, including grocery, personal care services, books, music, plane tickets, and financial services like online banking and the stock market. As such, it is considered a broad domain and technology transformation. We are here to discuss and understand E-Commerce in detail.
What is E-Commerce?
E-commerce is the activity of electronically buying or selling products or services online or over the Internet. It can conduct over computers, tablets, or smartphones with any internet access. Again it can be operated 24×7 services across the Globe.
History of E-Commerce
Online shopping was invented and pioneered in 1979 by Michael Aldrich in the United Kingdom. Michael Aldrich (22 August 1941 – 19 May 2014) was an English inventor, innovator, and entrepreneur. In 1979 he invented online shopping to enable online transaction processing between consumers and businesses, or between one company and another, a technique known later as e-commerce.
Indian E-Commerce History
The term e-commerce was coined in the early 1990s when the Internet became commercialized, and users began flocking to participate in the World Wide Web. The Internet introduced in India in 1995, and the first wave of e-commerce started soon after that.
K. Vaitheeswaran is the author of the recently released book “Failing to Succeed – the story of India’s first e-commerce company“. People love him for his tremendous initiative, effort, and call him the ‘father of e-commerce in India.’ He co-founded India’s first e-commerce company Fabmart.com (later rebranded Indiaplaza.com) in 1999.
In 2001, he co-founded the Fabmall supermarket chain, which was subsequently acquired by the Aditya Birla Group and rebranded ‘More.’
4 Types of E-Commerce Business Models
Every business has benefits, advantages, and disadvantages. Similarly, if you are planning to start or already doing online E-Commerce Business, it is essential to know for some fundaments of E-Commerce Business.
The better you know about your business type, you can do a profitable business. You can create the right brand image in the market. The following are four types of E-Commerce business models, and you must know you fall into which category.
- Business to business (B2B)
- Business to consumer (B2C)
- Consumer to consumer (C2C)
- Consumer to business (C2B)
Business to Business (B2B) E-Commerce Model
Business to Business (B2B) E-Commerce is the selling, buying, and trading of goods and services through an online sales portal between businesses. In general, it is used to improve the efficiency and effectiveness of a company’s sales efforts.
Key Benefits of B2B E-Commerce:
- Long term business relationship between companies.
- In B2B both the parties involved are business entities, the transactions are more rational than impulsive.
- Easy expansion of business, the rise in the number of customers, and increased brand awareness.
- Together it is easy to deliver 100% quality products and services. More returning and loyal customers.
Keeping multiple business factors and for better understanding, B2B E-Commerce business are of different types.
- Supplier Oriented Marketplace (eDistribution)
- Buyer Oriented Marketplace (eProcurement)
- Intermediary Oriented Marketplace (eExchange)