Since the very first online transaction about 25 years ago, e-commerce has grown to become one of the most important sectors in the world today. In 2018, e-commerce accounted up 14.3 percent of total retail sales in the United States, up from just over 12 percent in 2017.
E-commerce has become so prevalent that many consumers may be unaware that they are involved in an e-commerce trade.
E-commerce can be difficult to define due of its extensive scope. However, because e-commerce is rapidly expanding, understanding what defines an e-commerce transaction is critical for the majority, if not all, firms.
What Is E-Commerce?
E-commerce is defined as “the purchasing and selling of goods or services through the internet” by the e-commerce software business Shopify. The concept also demands that money and information be transferred online.
The implications of what is not deemed e-commerce is missed in this definition. Just because a company has an online presence does not indicate they are active in e-commerce. At the same time, an e-commerce activity does not necessitate the use of a firm at all, only two parties conducting a transaction online. E-commerce can refer to everything from a retail transaction to drop shipping.
Companies should learn about the many sorts of ecommerce platforms Australia has to better comprehend its impact.
One of the most frequent types of e-commerce is business-to-business (B2B). When two businesses exchange goods or services, this is referred to as a transaction.
B2B is one of the most important types of e-commerce in the United States, with total sales exceeding $9 trillion in 2018. In fact, by 2020, B2B is predicted to outnumber B2C.A business-to-business deal could involve a mining firm purchasing equipment from an industrial equipment firm or a business acquiring supply chain logistics services.
B2C e-commerce is the most prevalent type of e-commerce and occurs when a company sells a product or service to a consumer. When Netflix sells its service to viewers, it is engaging in B2C e-commerce. The entire transaction takes place online.
Goods can also be acquired through B2C e-commerce. A B2C transaction is the purchase of a physical good from Amazon. Consumers frequently prefer low-cost items or services in B2C relationships, and research suggests that consumers value quick and economical shipping.
Mobile Commerce (M-Commerce)
The explosive expansion of cell phone use has been an intriguing development in online traffic. In fact, mobile phones account for the vast bulk of internet usage. Naturally, this has been linked to the rise of m-commerce.
M-commerce may appear to be another sort of e-commerce. A B2C purchase completed on a mobile phone, for instance, is defined as both B2C and m-commerce.
M-commerce has positioned itself as an e-commerce leader because it includes other sorts of e-commerce. In 2017, m-commerce accounted for 34.5 percent of total e-commerce. By 2021, m-commerce is predicted to account for 53.9 percent of all e-commerce, and increase is anticipated to accelerate from there.
Customer-to-customer (C2C) transactions are still vital, despite the fact that corporations have less of an impact on them. These transactions are dependent on a third party acting as an intermediary.
Consider eBay as an instance. While eBay does neither sell or buy items, it does provide a service to its consumers. Payments are made securely through eBay’s website, and buyer and seller information are shared electronically. However, in this C2C transaction, the intermediary does not help shipment because that service is often provided by the seller.