As consumers are buying more products online, the rapid rise of e-commerce business doesn’t show signs of fading anytime soon. E-commerce, which is short for electronic commerce, involves any transaction or facilitation of business over the internet. When people think of e-commerce, the first thought that comes to mind is the buying and selling of products online. While that makes up the bulk of e-commerce, there are many other online activities that fall under the e-commerce umbrella.
What’s considered e-commerce?
When you make a purchase or pay a bill online, you’ve engaged in a form of e-commerce. Many people opt for this method of payment due to its convenience and efficiency, along with the added safety of not having checks lost in the mail or stolen. Also known for convenience, online auctions, made popular by such sites as eBay, have exploded in popularity in recent years and are considered a form of e-commerce. In addition to electronic payments, purchases, and online auctions, e-commerce also includes online banking, and digitally purchasing tickets for concerts, sporting events, or plane rides.
How many kinds of e-commerce are there?
E-commerce can be broken down into four main subcategories, though there are several minor categories as well. The four main kinds of e-commerce are:
- Business to Consumer
The most popular form of e-commerce is the process of consumers purchasing goods from businesses, and is also known as B2C. This is what most people think of when they think of e-commerce.
- Business to Business
Also known as B2B, this a form of e-commerce in which businesses conduct online transactions among themselves. For example, a manufacturing plant may purchase equipment from another business, or a company may pay its bills online.
- Consumer to Consumer
Consumer to Consumer, also called C2C, is e-commerce associated most often with online auction sites.
- Mobile Commerce
Mobile commerce, also called m-commerce, refers to the thousands of people that use mobile devices, such as smartphones and tablets, to conduct business and make purchases.
As more forms of online commerce are invented, the benefits of e-commerce continue to eclipse traditional business models. The biggest benefits are the ability to eliminate geographic distance between consumer and merchant and save both parties time in conducting transactions. Since e-commerce businesses have far less overhead than brick-and-mortar businesses, they can offer lower prices and streamlined operations so that transactions are completed faster and products delivered sooner.
