What is e-commerce?
E-commerce (electronic commerce) defines the buying and selling of interests and services, or the transmitting of funds over an electronic network, primarily the internet. These business investments occur either as business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C), or consumer to business (C2B).
In 2011, e-commerce was responsible for 5% of entire retail sales, according to the U.S. Census Bureau. Due to the COVID-19 pandemic, this percentage grew to over 16% by 2020.
How does e-commerce work?
E-commerce is covered by the internet. Customers access an online shop to browse around and place demands for material or benefits via their attachments.
Types of e-commerce
Business to business (B2B)
Business-to-business e-commerce guides the electronic exchange of outcomes, advantages, or agreements between corporations preferably than between businesses and clients.
Business to consumer (B2C)
Business-to-consumer is the retail element of e-commerce on the internet. It is when companies trade derivatives, services, or knowledge to clients.
Consumer to consumer (C2C)
Consumer-to-consumer is known as an online process where consumers trade goods, services, and information with one another.
Consumer to business (C2B)
Consumer-to-business is a sort of e-commerce where shoppers place their products and services online for firms to bid on and buy.
Business to administration (B2A)
Business-to-administration guides accomplished commerce between corporations and public authorities or state bodies.
Consumer to administration (C2A)
Consumer-to-administration directs achieved transactions between buyers and public management or government bodies.
What is m-commerce?
Mobile e-commerce refers to online transactions using mobile devices such as smartphones and tablets. It includes mobile shopping, banking, and expenses.
It also works as a catalyst for new initiatives and services or current supportive ones in development. These include:
· Electronic ticketing and boarding passes
· Digital content purchases and delivery
· Mobile banking
· Contactless payments and in-app payments
· Location-based services
History of e-commerce
E-commerce kicked off in the 1960s when businesses started using EDI to share company records with other companies. In 1979, the American National Standards Institute developed ASC X12 as a universal prototype for companies to transfer documents through electronic networks.
· According to estimation, global e-commerce sales will reach $4.8 trillion by 2021. That will make e-commerce a growing and successful ambition to be in.
· Nearly 50% of clients were found to shop more on mobile than in-store in 2018. As a result, store owners must guarantee that their websites and ads are mobile optimized to accomplish their target audience.
· Women tend to shop online more repeatedly than men. For every $10 spent online, women pay $6 while men pay $4.
· Millennials from the ages 18-34 tend to shop more online than more aged individuals. They are also the biggest group of digital buyers, defining 38.4% of online clients.
If you want to build your own web shop or have questions relating to e-commerce development platforms or apps, read our blog posts for Shopify and Shopware. Our dedicated outsourcing team can be your collaborator in e-commerce.