What is e-commerce? Definition, benefits, examples

What is e-commerce? E-commerce is the buying and selling of goods or services via the internet, and the transfer of money and data to ... Whatise-commerce?Definition,benefits,examples355sharesShareonTwitterShareonFacebookShareonLinkedinWhatise-commerce?E-commerceisthebuyingandsellingofgoodsorservicesviatheinternet,andthetransferofmoneyanddatatocompletethesales.It’salsoknownaselectroniccommerceorinternetcommerce. Today,questionsaboute-commerceusuallycenteraroundwhichchannelsarebesttoexecutebusinessonline,butoneofthemostburningquestionsistheappropriatespellingofe-commerce.Thetruthis,thereisn’tanyonethat’srightorwrong,anditusuallycomesdowntopreference.Here’safewofthevariationsofhowe-commerceisspelled: e-commerceE-commerceecommerceEcommerceeCommerceecommerce(Inotherwords,“whatise-commerce”isfareasiertoanswerthanhowtospellit,sowemayhavetoagreetodisagreeontheproperspelling).2022commerceande-commercetrendsrevolvearoundtechstacks,customerdata,customerservice,supplyanddemand,andoverallCX.Typesofe-commerceAscommercecontinuestoevolve,sodothewaysthatit’sconducted.Followingarethemosttraditionaltypesofe-commercemodels:BusinesstoConsumer(B2C):B2Ce-commerceisthemostpopulare-commercemodel.Businesstoconsumermeansthatthesaleistakingplacebetweenabusinessandaconsumer,likewhenyoubuyarugfromanonlineretailer.BusinesstoBusiness(B2B):B2Be-commercereferstoabusinesssellingagoodorservicetoanotherbusiness,likeamanufacturerandwholesaler,orawholesalerandaretailer.Businesstobusinesse-commerceisn’tconsumer-facing,andusuallyinvolvesproductslikerawmaterials,software,orproductsthatarecombined.ManufacturersalsoselldirectlytoretailersviaB2Becommerce.DirecttoConsumer(D2C):Directtoconsumere-commerceisthenewestmodelofecommerce,andtrendswithinthiscategoryarecontinuallychanging.D2Cmeansthatabrandissellingdirectlytotheirendcustomerwithoutgoingthrougharetailer,distributor,orwholesaler.SubscriptionsareapopularD2Citem,andsocialsellingviaplatformslikeInstaGram,Pinterest,TikTok,Facebook,SnapChat,etc.arepopularplatformsfordirecttoconsumersales.ConsumertoConsumer(C2C):C2Ce-commercereferstothesaleofagoodorservicetoanotherconsumer.ConsumertoconsumersalestakeplaceonplatformslikeeBay,Etsy,Fivver,etc.ConsumertoBusiness(C2B):Consumertobusinessiswhenanindividualsellstheirservicesorproductstoabusinessorganization.C2Bencompassesinfluencersofferingexposure,photographers,consultants,freelancewriters,etc..FindouthowB2Bindustrieslikemanufacturingandhightechtransformedamidduringthepandemic.Manufacturershadanimportantrealization:Yourbuyingexperienceshouldbesimple,evenifyourproductsaren’t.Thisisavaluabletakeawayforeveryindustry.Directtoconsumere-commerce:DTCisbreakingbarriersanddrivingbigresultsine-commerceDirecttoconsumer(D2CorDTC)hasseenamassivesurgesincetheadventofthepandemic,asbrandswhodidn’tembraceD2Ce-commercewerecaughtscramblingtoadapt.FromCPGtowholesaletoautomotiveandmore,everyindustryisnowpayingattention,hopingtobetterengagecustomersanddeliverwhattheywant.Directtoconsumere-commerceisthenewestmodelofecommerce.D2Cmeansthatabrandissellingdirectlytotheirendcustomerwithoutgoingthrougharetailer,distributor,orwholesaler.SubscriptionsareapopularD2Citem,andsocialsellingviaplatformslikeInstaGram,Pinterest,TikTok,Facebook,SnapChat,etc.arepopularplatformsfordirecttoconsumersales.DTCbusinessmodelsarebeingadoptedbyconsumerbrandsthatarehopingtoimprovetheirbottomlineswithadirect-to-consumer(D2C)strategy,including:DirectsalesD2CwithredirectiontothechannelMarketplacesSocialcommerceD2CwithretailersupportSocialcommerceistheuseofasocialplatformfore-commercesales,andit'shuge:By2027,it'sprojectedtodrive$604billioninsales.Whatise-commerce:Examples Everyonefromindependentfreelancerstosmallbusinessestothelargestofcorporationscanbenefitfromtheabilitytoselltheirgoodsandservicesonlineatscale.Herearesomeexamplesoftypesofe-commerce:Retail:Thesaleofproductsdirectlytoaconsumerwithoutanintermediary.Dropshipping:Thesaleofproductsthataremanufacturedandshippedtoconsumersviaathirdparty.Digitalproducts:Downloadableitemsliketemplates,courses,e-books,software,ormediathatmustbepurchasedforuse.Whetherit’sthepurchaseofsoftware,tools,cloud-basedproductsordigitalassets,theserepresentalargepercentageofecommercetransactions.Wholesale:Productssoldinbulk.Wholesaleproductsareusuallysoldtoaretailer,whothensellstheproductstoconsumers.Services:Theseareskillslikecoaching,writing,influencermarketing,etc.,thatarepurchasedandpaidforonline.Subscription:ApopularD2Cmodel,subscriptionservicesaretherecurringpurchasesofproductsorservicesonaregularbasis.Crowdfunding:Crowdfundingallowssellerstoraisestartupcapitalinordertobringtheirproducttothemarket.Onceenoughconsumershavepurchasedtheitem,it’sthencreatedandshipped.Killingit:Successfule-commsitesE-commerceaccountsfortrillionsofdollarsinsaleseveryyear.Todayit’salmostinconceivablethatacompanywouldn’tbeusingadigitalspacetodrivesalesandbottomlines.Herearesomeofthetope-commercecompanies: Alibaba:Launchingin1999,TheChinesecompanyAlibabaisbyfartheworld’smostsuccessfule-commercecompanyandretailer,hostingthelargestB2B(Alibaba.com),C2C(Taobao.com),andB2C(Tmall)marketplacesacrosstheglobe.TheironlineprofitshavesurpassedallUSretailers–includingWalmartandAmazon–combinedsince2015.Amazon:Amazonisthelargeste-commerceretailerintheUnitedStates,andhaschangedthefaceofretailsomuchthataburningquestionformostretailersishowtobeatAmazon.Walmart:OncethetopretailerintheUS,Walmarthasfocusedmightilyupontheironlinebusiness,withgreatresults,offeringtraditionalretailsales,aswellasgrocerydeliveryandsubscriptionservices.eBay:Oneofthefirste-commercesites,eBaystilldominatesthedigitalmarketspace,allowingforbusinessesandindividualstoselltheirproductsonline.Wayfair:Thishomefurnishinge-tailerisadrop-shipper,carryinghardlyanyinventory.Theymanagesuppliers,orders,andfulfillment,andcredittheirsuccessonpersonalization–meaningtheystudyhowtheircustomersengageandofferupproductstheybelieveconsumersmostwant.Thinkyou’vegote-commercegame?Takeour60-secondquizandfindout!What’spoppin’:Thee-commercetrendsthatarechanginghowwebuy,sell,andconsumeThee-commercetrendsthatareheretostay,nomatterwhat: Personalization:DeliveringinthemomentandunderstandingpreferenceswillbekeytogrowthService:Ifyou’renottakingcareofcustomersafterthesale,you’regoingtohavefewercustomerstotakecareofinthefuture–customerservicemustbepartofmoderne-commerceplatformsSearch:SEOandsearchresultsarewherethebrandandproductexperiencestartOmnichannel:Always-on,data-driveneffortswillboostengagement,sales,andloyaltyacrossallsectorsandindustriesPurpose:Sustainability,equality,environmental,andpoliticalstancesareallnowpartofwhatmakesabrandappealing–ornotCX:Theentirecustomerexperiencemustbeseamless,fromsearchtohandingoffbetweenscreens,tocustomerservicePaymentanddeliveryoptions:Clickandcollect,curbsidepickup,simplepaymentwillbecomethenorm,nottheexceptioninthefutureDirecttoconsumer:Moreandmorebrandsareextendingtheirgo-to-marketwithDTCbusinessesCreativewins:Togainattentiononline,yourmarketingandmessagingmuststandoutfromthecrowdSocialcommerce:By2027,it’sprojectedthatsocialcommercewilldrive$604billioninsalesE-commercepersonalizationextendsbeyondpersonalizedproductrecommendations.Holisticeffortsallowbrandstooptimizeforeveryuser.Benefitsofe-commerceOnlinecommerceoffersaplethoraofbenefits,fromsellingeverywheretopersonalizedexperiencesthatdriveloyalty–ande-commerceprovidesa24/7storefront.Let’slookatsomeofthebiggestbenefitsofe-commerce:Convenience:Onlinecommercemakespurchasessimpler,faster,andlesstime-consuming,allowingfor24-hoursales,quickdelivery,andeasyreturns.Personalizationandcustomerexperience:E-commercemarketplacescancreaterichuserprofilesthatallowthemtopersonalizetheproductsofferedandmakesuggestionsforotherproductsthattheymightfindinteresting.Thisimprovesthecustomerexperiencebymakingshoppersfeelunderstoodonapersonallevel,increasingtheoddsofbrandloyalty.Globalmarketplace:Customersfromaroundtheworldcaneasilyshope-commercesites–companiesarenolongerrestrictedbygeographyorphysicalbarriers.Minimizedexpenses:Sincebrickandmortarisnolongerrequired,digitalsellerscanlaunchonlinestoreswithminimalstartupandoperatingcosts.E-commerceeverywhere.Fast.Personalized.Shoppable.StartHERE.Sharethis:ShareonTwitterShareonFacebookShareonLinkedIn355sharesJennVandeZandeFollowJennVandeZandeonLinkedinFollowJennVandeZandeonTwitterSubscribetoournewsletterforthemostup-to-datee-commerceinsights.FeaturedSectionsPrevTheFutureofE-CommerceTheRiseofHXMFutureofGroceryRetailFutureofSupplyChainCustomerData&PrivacyCOVID-19ElFuturodelaExperienciadelCliente(LATAM)OFuturodaExperiênciadoCliente(Brasil)DieZukunftvonCX(Deutsch)SustainabilityinBusinessNextCloseVideoOverlayShareonTwitterShareonFacebookShareonLinkedinReadArticleCloseDialog×Subscribetoournewsletterforthemostup-to-datee-commerceinsights.CommercetrendsandinsightspresentedbySAPCustomerExperienceCloseDialog×Success!Thanksforcontactingus!Wewillgetintouchwithyoushortly.Okay