Lesson 1. What is E-Commerce?
E-commerce is the buying and selling of products and services via a company website on the internet. Money and data are transferred, and the product or service is delivered or activated. It is possible to buy anything from air tickets, clothing, and groceries to second-hand goods, including cars, online. Some e-commerce sites exist solely online, while others also have a physical shop. Establishing and maintaining a consistent web presence is an essential part of every business strategy. The aim of e-commerce is to reach, attract and retain customers, to drive sales and boost profits.
Online shopping offers many advantages over traditional shopping. Customers can browse and shop from the comfort of their home, using their mobile phone, laptop, PC, or tablet. An effective e-commerce site offers fast loading pages and a reliable shipping service, making the experience quick and convenient. Location is not an issue; customers can be reached in places previously not possible if a suitable shipping service is in place. Furthermore, customer behaviour can be monitored and analysed and used to help inform e-commerce strategy.
The major challenges are firstly, persuading customers to visit the e-commerce site, secondly, encouraging visitors to purchase a product or service, and then motivating the customer to return to purchase more.
- TYPES OF E-COMMERCE MODELS
| Business to Business (B2B) – selling online from business to business, e.g., wholesalers | Apple inc.: http://www.apple.com Boards and More: http://www.boards-and-more.com |
| Business to Consumer (B2C) – selling online from business directly to the consumer | Amazon: https://www.amazon.co.uk; Zara: https://www.zara.com |
| Consumer to Consumer (C2C) – the business model that facilitates business between private individuals | Ebay: https://www.ebay.com; Donedeal: https://www.donedeal.ie |
| Consumer to Business (C2B) – for example, when an influencer blogs about a product and provide links to the company’s website in return for financial gain | Saburu’s #Meetanowner Instagram and YouTube campaign: devinsupertramp-subaru-sponsored-instagram-post.png (1009×495) (mediakix.com) |
