Selling over the internet is one of the desires of an increasing number of people. More and more the net is becoming a gigantic market in which a greater number of products and services are sold.
Today we are going to see what an ecommerce is, the types of e-commerce, business ideas and the advantages and disadvantages of e-commerce.
What is Electronic Commerce?
Internet sales, e-commerce or online commerce is simply the mechanism by which products and services are bought and sold over the Internet.
Therefore e-commerce can be produced through social networks and any other platform that needs an internet connection.
Perhaps the term ecommerce is more associated with the fact of having an online store, in any of its variants. For example, you can install an internet store in any blog or web with a simple plugin, as is the case of Woocommerce.
Types of Ecommerce
E-commerce businesses can be classified in many different ways. One of the things I like the most is to do it based on the character of the business and who they are focused on.
Digital marketing strategies and advertising on the Internet would not be the same if the end customer of ecommerce is a company that if it is aimed at selling to individuals. Neither the psychology nor the way of understanding Internet purchases are the same on the part of end consumers.
Business-to-Business (B2B) e-commerce encompasses all electronic transactions of goods or services between companies. Producers and wholesalers of traditional commerce usually operate with this type of electronic commerce. An example is the purchase of cardboard boxes.
Business-to-Consumer type e-commerce is distinguished by the establishment of electronic commercial relations between companies and end consumers. It corresponds to the retail section of e-commerce, where traditional online sales models normally operate.
This type of relationship can be easier and more dynamic, but also more sporadic or discontinuous.
This type of commerce has developed a lot, due to the arrival of the web and there are already many shops and virtual shopping centers on the Internet, which sell all kinds of consumer goods, such as computers, software, books, shoes, cars, food, financial products, digital publications, and so on.
Compared to retail purchasing in traditional commerce, the consumer tends to have more information available and there is also a widespread idea that you can buy cheaper, without jeopardizing an equally personalized customer service, as well as ensuring the speed of processing and delivery of your order.
Consumer to consumer (C2C)
Consumer-to-Consumer (C2C) e-commerce encompasses all electronic purchases and sales of goods or services between consumers. Generally, these transactions are made through a third party, which provides the online platform where the transactions are made.
In C2B (Consumer-to-Business) the traditional sense of the exchange of goods is completely reversed. This type of e-commerce is very common in crowdsourcing projects, for example. A large number of people make their services or products available to companies looking for precisely these types of services or products.
Examples of these practices are sites where designers submit several proposals for a company logo and where only one of them is effectively selected and purchased. Another platform that is very common in this type of trade are markets that sell royalty-free photographs, images and design elements, such as iStockphoto.
From company to administration (B2A)
This part of e-commerce (Business-to-Administration) covers all transactions carried out on the Internet between companies and the public administration.
This is an area that involves a large number and variety of services, especially in fields such as tax, social security, employment, legal documents and records, etc.. This type of services has increased considerably in recent years with the investments made in eGovernment.
Consumer to Administration (C2A)
The Consumer-to-Administration model encompasses all online transactions between individuals and the public administration.
E-Commerce Business Model Classes
There are many variants of e-commerce that come out of the typical online shop of a lifetime. There are models in which practically no economic investment is required (but of your knowledge, dedication and time) and that can be just as profitable as the traditional ecommerces.
Traditional Ecommerce or online store
Model consisting of having a stock of products (clothes, accessories, wine, toys…whatever) and creating an online store to sell them. It can be any type of product, such as a manual stretch film. It is the natural way to increase the business of those who already have a physical store.
As always on the internet, it is one thing to have a digital store (which after all is nothing more than a website) and another to be found by consumers. You have to have strategies of web positioning (seo) and marketing and digital advertising.
One of the internet business models that is growing the most and it is not surprising because through the Dropshipping model you can create an ecommerce without having to buy a single product, or worry about shipments.
You also have to create a virtual store (an ecommerce) but who is responsible for shipping and stock of products is the provider of dropshipping. Yes, the margins are going to be small so it is very important that you negotiate very well with the supplier everything relating to prices, shipments, returns, etc..
The affiliation model consists of promoting products or services of a third party in exchange for a commission once the sale is consumed.
In other words, you create a website on a specific subject (for example, tools for the care of the garden), position and offer products related to the sector. You don’t have to sell anything, the marketplace does (Amazon is the best known example).
They take care of the sale, shipping, returns … everything. And if it goes well, you earn a commission that can range between 5%-10% depending on the type of product chosen.
Infoproducts are products that offer specific information about something specific. They are usually a way of teaching to accomplish something very specific with the goal of successfully transporting the buyer from one state A to another state B.
An infoproduct must completely solve a certain problem, such as that of someone who is looking to create a blog in wordpress and after assimilation of the infoproduct, has the tools and knowledge necessary to do it by itself.