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What Is Electronic Commerce (e-commerce)

Electronic commerce or e-commerce (sometimes written as eCommerce) is a business model that lets firms and individuals buy and sell things over the internet. E-commerce operates in all four of the following major market segments:

  1. Business to business
  2. Business to consumer
  3. Consumer to consumer
  4. Consumer to business

E-commerce offers consumers the following advantages:

  • Convenience. E-commerce can occur 24 hours a day, seven days a week.
  • Increased selection. Many stores offer a wider array of products online than they carry in their brick-and-mortar counterparts. And many stores that solely exist online may offer consumers exclusive inventory that is unavailable elsewhere.
  • Online buying and selling have become important parts of many people’s lives. Virtual stores allow people to shop from the comfort of their homes without the pressure of a salesperson. Online marketplaces provide a new and more convenient venue for exchanging virtually all types of goods and services.
  • Both businesses and customers have embraced online sales as a cheaper and more convenient way to shop. Still, just like anything associated with the Internet, there are benefits and dangers associated with shopping online. Read on to learn how to protect yourself while you use this handy resource.
  • There are a lot of benefits gained from buying and selling online. These include:
  • Convenience: It is very convenient to shop from where you are located.
  • Cost Savings: With ever-increasing gas prices, shopping online saves you the cost of driving to stores, as well as parking fees. You will also save time by avoiding standing in line, particularly around the holidays, when stores are busy and packed with customers.
  • Variety: The Internet provides sellers with unlimited shelf space, so they are more likely to offer a wider variety of products than they would in brick-and-mortar stores.
  • No Pressure: No salesperson is hovering around and pressuring you to purchase in a virtual or online store.
  • Easy Comparison: Shopping online eliminates the need to wander from store to store comparing prices.
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What is e-commerce: Examples 

Everyone from independent freelancers to small businesses to the largest of corporations can benefit from the ability to sell their goods and services online at scale.

Here are some examples of types of e-commerce:

    1. Retail: The sale of products directly to a consumer without an intermediary.
    2. Dropshipping: The sale of products that are manufactured and shipped to consumers via a third party.
    3. Digital products: Downloadable items like templates, courses, e-books, software, or media that must be purchased for use. Whether it’s the purchase of software, tools, cloud-based products or digital assets, these represent a large percentage of ecommerce transactions.
    4. Wholesale: Products sold in bulk. Wholesale products are usually sold to a retailer, who then sells the products to consumers.
    5. Services: These are skills like coaching, writing, influencer marketing, etc., that are purchased and paid for online.
    6. Subscription: A popular D2C model, subscription services are the recurring purchases of products or services on a regular basis.
    7. Crowdfunding: Crowdfunding allows sellers to raise startup capital in order to bring their product to the market. Once enough consumers have purchased the item, it’s then created and shipped
    8. Clearly online commerce offers a plethora of benefits. Let’s look at some of the biggest ones.


      Online commerce makes purchases simpler, faster, and less time-consuming, allowing for 24-hour sales, quick delivery, and easy returns. Personalization and customer experience
      E-commerce marketplaces can create rich user profiles that allow them to personalize the products offered and make suggestions for other products that they might find interesting. This improves the customer experience by making shoppers feel understood on a personal level, increasing the odds of brand loyalty.Global marketplace
      Customers from around the world can easily shop e-commerce sites – companies are no longer restricted by geography or physical barriers. Minimized expenses
      Since brick and mortar is no longer required, digital sellers can launch online stores with minimal startup and operating costs.