To begin with, it should be noted that the eCommerce sphere is much wider than the standard one. It’s not just about selling goods or services over the Internet: you can earn a percentage on transactions, data exchange, etc.
In addition, the online commodity and monetary interactions have an extremely rich history, rooted in the middle of the last century. Today we will analyze what e-commerce is, consider its types, categories, and advantages and disadvantages. And if you are interested ecommerce development services, go to zoolatech.com.
Defining the term
E-commerce is commonly referred to as a business process (more broadly — the sphere of economy), including trade or monetary transactions conducted through computer, electronic networks.
Back in the 50s American Airlines in partnership with IBM began developing a unique system that automates the booking of seats in aircraft. The system still exists today, called SABRE — in its time it significantly facilitated air travel for passengers, helping them to navigate in tariffs, directions, etc. Today more than 350 000 travel agencies all over the world, 400 airlines, 100 000 hotels, 25 car brands and 14 cruise routes use SABRE.
In 1971-72, the famous ARPANET, a computer network developed by the U.S. Department of Defense to communicate in the event of nuclear war, was used to organize purchases and sales between students at Stanford Artificial Intelligence Laboratory and MIT. The monetary relationship made through this network was one of the prerequisites for eCommerce. In 1979, the English inventor Michael Aldrich demonstrated the first online shopping system that consisted of simple transactions between buyers and sellers.
Over the past two decades, the eCommerce market has been developing particularly rapidly — set by the explosion of modern technology, the widespread availability of the Internet, the spread of social networks, as well as the evolution of Web 1.0 in Web 2.0.
Categories of eCommerce
Traditionally, e-commerce on the Internet is divided into three groups, by customer segment: B2B, B2C and C2C. Some refer to two more categories: B2A and C2A. Let us consider all 5 types of eCommerce.
1. B2B: «Business for Business». The essence is simple — one company is selling something to another company. The Internet here can significantly optimize processes: speed up operations, relationships more transparent. An example — before your eyes. LPgenerator is a service for creating business landings (although, of course, you can launch a personal page promoting a person, a personal brand — anything).
2. B2C: «Business for the customer. Here, too, everything is obvious. The company sells directly to a natural person. Often in this format is the sale of goods, sometimes — services (learning English through Skype, for example). This is where traditional online stores fit in, as well as a new trend — social trade (customer search and sale in social media).
3. C2C: «Consumer for consumer. An interesting model that involves trade relations between two people, neither of which can be called a businessman. The resources that provide this opportunity are similar to something between a flea market and an ad newspaper. The most common format is online auctions. They allow the buyer to save money, the seller — to sell the unnecessary, beating off the money.
4. B2A: «Business for Administration». A specific format, the essence of which is interaction between an entrepreneur and some state structures (local, federal). An example is a tender or some bureaucratic operations that can be automated via the Internet.
5. C2A: «Client for administration». The most exotic type of e-commerce on the Internet, which is actively developing today. The essence of interaction between public organizations directly with people using certain services. The sphere is more of a social one. An example of this is the interactive portals of public service centers that exist in many cities.