Ecommerce Definition - What is Ecommerce - Shopify

Ecommerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet, ... Emailaddress Password Yourstorename Createyourstore OpensinanewwindowOpensanexternalsiteOpensanexternalsiteinanewwindow Businessencyclopedia Learneverythingthereistoknowaboutrunning a business SearchSearch Ecommerce 2minuteread Email Twitter Facebook Pinterest LinkedIn WhatisEcommerce? Ecommerce,alsoknownaselectroniccommerceorinternetcommerce,referstothebuyingandsellingofgoodsorservicesusingtheinternet,andthetransferofmoneyanddatatoexecutethesetransactions.Ecommerceisoftenusedtorefertothesaleofphysicalproductsonline,butitcanalsodescribeanykindofcommercialtransactionthatisfacilitatedthroughtheinternet. Wherease-businessreferstoallaspectsofoperatinganonlinebusiness,ecommercerefersspecificallytothetransactionofgoodsandservices. Thehistoryofecommercebeginswiththefirsteveronlinesale:ontheAugust11,1994amansoldaCDbythebandStingtohisfriendthroughhiswebsiteNetMarket,anAmericanretailplatform.ThisisthefirstexampleofaconsumerpurchasingaproductfromabusinessthroughtheWorldWideWeb—or“ecommerce”aswecommonlyknowittoday. Sincethen,ecommercehasevolvedtomakeproductseasiertodiscoverandpurchasethroughonlineretailersandmarketplaces. Independentfreelancers,smallbusinesses,andlargecorporationshaveallbenefitedfromecommerce,whichenablesthemtoselltheirgoodsandservicesatascalethatwasnotpossiblewithtraditionalofflineretail. Globalretailecommercesalesareprojectedtoreach$27trillionby2020. TypesofEcommerceModels Therearefourmaintypesofecommercemodelsthatcandescribealmosteverytransactionthattakesplacebetweenconsumersandbusinesses. 1.BusinesstoConsumer(B2C):Whenabusinesssellsagoodorservicetoanindividualconsumer(e.g.Youbuyapairofshoesfromanonlineretailer). 2.BusinesstoBusiness(B2B):Whenabusinesssellsagoodorservicetoanotherbusiness(e.g.Abusinesssellssoftware-as-a-serviceforotherbusinessestouse) 3.ConsumertoConsumer(C2C):Whenaconsumersellsagoodorservicetoanotherconsumer(e.g.YousellyouroldfurnitureoneBaytoanotherconsumer).4.ConsumertoBusiness(C2B):Whenaconsumersellstheirownproductsorservicestoabusinessororganization(e.g.Aninfluenceroffersexposuretotheironlineaudienceinexchangeforafee,oraphotographerlicensestheirphotoforabusinesstouse). ExamplesofEcommerceEcommercecantakeonavarietyofformsinvolvingdifferenttransactionalrelationshipsbetweenbusinessesandconsumers,aswellasdifferentobjectsbeingexchangedaspartofthesetransactions. 1.Retail:Thesaleofaproductbyabusinessdirectlytoacustomerwithoutanyintermediary.2.Wholesale:Thesaleofproductsinbulk,oftentoaretailerthatthensellsthemdirectlytoconsumers.3.Dropshipping:Thesaleofaproduct,whichismanufacturedandshippedtotheconsumerbyathirdparty.4.Crowdfunding:Thecollectionofmoneyfromconsumersinadvanceofaproductbeingavailableinordertoraisethestartupcapitalnecessarytobringittomarket.5.Subscription:Theautomaticrecurringpurchaseofaproductorserviceonaregularbasisuntilthesubscriberchoosestocancel.6.Physicalproducts:Anytangiblegoodthatrequiresinventorytobereplenishedandorderstobephysicallyshippedtocustomersassalesaremade.7.Digitalproducts:Downloadabledigitalgoods,templates,andcourses,ormediathatmustbepurchasedforconsumptionorlicensedforuse.8.Services:Askillorsetofskillsprovidedinexchangeforcompensation.Theserviceprovider’stimecanbepurchasedforafee. Join446,005entrepreneurswhoalreadyhaveaheadstart.Getfreeonlinemarketingtipsandresourcesdelivereddirectlytoyourinbox.EmailaddressGetupdatesNocharge.Unsubscribeanytime. Thanksforsubscribing. You’llstartreceivingfreetipsandresourcessoon.Inthemeantime,startbuildingyourstorewithafree14-daytrialofShopify. Startanonlinestoreforfree It’sneverbeeneasiertoownandoperateabeautiful,fully-featuredonlinestore. Startyourfree14-daytrial Youmayalsobeinterestedin: Join446,005entrepreneurswhoalreadyhaveaheadstart.Getfreeonlinemarketingtipsandresourcesdelivereddirectlytoyourinbox.EmailaddressGetupdatesNocharge.Unsubscribeanytime. Thanksforsubscribing. You’llstartreceivingfreetipsandresourcessoon.Inthemeantime,startbuildingyourstorewithafree14-daytrialofShopify. Resources WhatisShopify? LearnmoreabouttheShopifyplatform Howtostartanonlinestore Step-by-stepguideforstartingup Bestecommerceplatforms Findtherighttoolandstartselling Smallbusinessideas Discoverprofitablebusinessideastoday Howtomakemoneyonline Practicaladviceforearningasideincome Introductiontodropshipping Startmakingsaleswithoutinventory Introductiontoprintondemand Addcustomdesignstopopularproducts Startyour14-dayfreetrialtoday! EmailaddressStartfreetrialTryShopifyfreefor14days,nocreditcard required.Byenteringyouremail,youagreetoreceivemarketingemails from Shopify.