Reading Material

About E-commerce

1. Types of E-commerce

Generally speaking, when we think of e-commerce, we think of an online commercial transaction between a supplier and a client. Although this idea is right, we can be more specific and actually divide e-commerce into six major types, all with different characteristics.

There are 6 basic types of e-commerce: Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C), Consumer-to-Business (C2B), Business-to-Administration (B2A), Consumer-to-Administration (C2A).

(1) Business-to-Business (B2B)

Business-to-Business (B2B) e-commerce encompasses all electronic transactions of goods or services conducted between companies. Producers and traditional commerce wholesalers ^[1] typically operate with this type of electronic commerce.

(2) Business-to-Consumer (B2C)

Business-to-Consumer e-commerce is distinguished by the establishment ^[2] of electronic business relationships between businesses and final consumers. It corresponds to the retail section of e-commerce, where traditional retail trade normally operates.

These types of relationships can be easier and more dynamic, but also more sporadic ^[3] or discontinued ^[4] . This type of commerce has developed greatly, due to the advent of the web, and there are already many virtual stores and malls on the internet, which sell all kinds of consumer goods, such as computers, software, books, shoes, cars, food, financial products, digital publications, etc.

When compared to buying retail in traditional commerce, the consumer usually has more information available in terms of informative content and there is also a widespread idea that you'll be buying cheaper, without jeopardizing ^[5] an equally personalized customer service, as well as ensuring quick processing and delivery of your order.

(3) Consumer-to-Consumer (C2C)

Consumer-to-Consumer (C2C) e-commerce encompasses all electronic transactions of goods or services conducted between consumers. Generally, these transactions are conducted through a third party , which provides the online platform where the transactions are actually carried out.

(4) Consumer-to-Business (C2B)

In C2B, there is a complete reversal ^[6] of the traditional sense of exchanging goods. This type of e-commerce is very common in crowd sourcing based projects. A large number of individuals make their services or products available for purchase for companies seeking precisely these types of services or products.

Examples of such practices are the sites where designers present several proposals for a company logo, and where only one of them is selected and effectively purchased. Platforms that are very common in this type of commerce are the markets that sell royalty-free photographs, images, media and design elements, such as iStockphoto.

(5) Business-to-Administration (B2A)

This part of e-commerce encompasses all transactions conducted online between companies and public administration. This is an area that involves a large amount and a variety of services, particularly in areas such as fiscal ^[7] , social security, employment, legal documents and registers, etc. These types of services have increased considerably ^[8] in recent years with investments made in e-government.

(6) Consumer-to-Administration (C2A)

The Consumer-to-Administration model encompasses all electronic transactions conducted between individuals and public administration.

Examples of applications include:

●Education—disseminating information, distance learning , etc.

●Social security—through the distribution of information, making payments, etc.

●Taxes—filing tax returns, payments, etc.

●Health—appointments, information about illnesses, payment of health services, etc.

Both models involving Public Administration (B2A and C2A) are strongly associated to the idea of efficiency and easy usability of the services provided to citizens by the government, with the support of information and communication technologies.

2. Advantages of E-commerce

The main advantage of e-commerce is its ability to reach a global market, without necessarily implying a large financial investment. The limits of this type of commerce are not defined geographically ^[9] , which allows consumers to make a global choice, obtain the necessary information and compare offers from all potential suppliers, regardless of their locations.

By allowing direct interaction with the final consumer, e-commerce shortens the product distribution chain, sometimes even eliminates ^[10] it completely. This way, a direct channel between the producer or service provider and the final user is created, enabling them to offer products and services that suit the individual preferences of the target market.

E-commerce allows suppliers to be closer to their customers, resulting in increased productivity and competitiveness for companies; as a result, the consumer is benefited with an improvement in quality service, resulting in greater proximity, as well as a more efficient pre-and post-sales support. With these new forms of electronic commerce, consumers now have virtual stores that are open 24 hours a day.

Cost reduction is another very important advantage normally associated with electronic commerce. The more trivial a particular business process is, the greater the likelihood ^[11] of its success, resulting in a significant reduction of transaction costs and, of course, of the prices charged to customers.

3. Disadvantages of E-commerce

The main disadvantages associated with e-commerce are as follows:

●Strong dependence on Information and Communication Technologies (ICT).

●Lack of legislation that adequately ^[12] regulates the new e-commerce activities, both nationally and internationally ^[13] .

●Market culture is averse to electronic commerce (customers cannot touch or try the products).

●The users' loss of privacy, the loss of regions' and countries' cultural and economic identity.

●Insecurity in the conduct of online business transactions.

4. Types of E-commerce Websites

An e-commerce website sells things online. The website could be owned by a company, a single person or a group of people. It supervises the online purchases and transactions.

E-commerce sites have grown into multiple versions and types. Here we have listed them for the better understanding of how different types of trades and selling happens online.

(1) According to the Type of the Market

By type of market, we mean if the parties of a trade are both businesses, both customers or one customer and one business. These known types are seen in the normal, offline business world. Here, they are just taken to categorize ^[14] online business.

1) B2B. B2B e-commerce sites are businesses selling services and products to other businesses. For instance, a machine-maker selling a tailor-made chain-saw machine to a wood production house.

Such websites have comparatively lower visitors than other popular types of e-commerce sites i.e. an online retailer, yet, generally the price of an average order is higher. Alibaba.com is a B2B online marketplace where many vendors and production houses sell things online to other production houses.

2) B2C. This is the regular online retailer. Businesses sell to customers. It is done by the business owning its own e-commerce site or selling its products on a marketplace, or even on a normal e-commerce website where only selected premium sellers are present. The number of transactions and customers stays higher than the B2B transactions.

3) C2C. Such market type allows customers to interact with each other and sell things to each other. Type of the product isn't restricted to only manufactured or firsthand ^[15] products. A genuine online marketplace is the pure example of a C2C market where customers are selling their things to other customers. Such market could have a variety of products ranging from new, second hand products, home-made products to even things of antiquity.

(2) According to the Number of the Sellers

Here, the number of the sellers available on the site defines in which category the site falls in.

1) Vendor specific—single seller. A vendor specific e-commerce website is selling products of a single company. All the product range and services are listed on the website for sale. No products/services of other company are shown. Today, most of the big manufacturers also include this feature on their corporate sites. There could be also an artist' sites selling its art-products online or on YouTube site selling related merchandises. These are vendor specific e-commerce sites, where only a single manufacturer's products are being sold.

2) Online retailers—selected premium sellers. General people are most familiar with this sites. Known examples of such online retailers are Amazon, Flipkart, etc. These companies don't restrict the sellers to one production house, as a vendor specific e-commerce site does, but also doesn't open up selling feature to everyone either. The sellers here are chosen by the site to maintain the trust, product quality and control over other functions of the site. These premium sellers need to match some of the predefined ^[16] qualities set by the e-commerce website owner.

3) Online marketplace—everyone is a seller. These are called online marketplaces. Just like in a real life marketplace, you see international companies selling their things to a single person. An online marketplace is the virtual version of such a marketplace, where multiple types of sellers are selling to multiple types of customers. To become a seller, you aren't required to be selected. You can visit the site, fill the form and begin selling things online through the marketplace. Such marketplace also includes all the types of e-commerce sites into it as there could be a vendors selling their things on their own specific stores on the sites (vendor specific), there could be multinational companies having their stores here (premium sellers) or even a person wanting to sell his old laser could become a seller. The types of things to be sold aren't also limited to produced or crafted things. It could widen to things of antiquity ^[17] , rarity ^[18] , art pieces, and almost everything which could be legally sold. eBay is the most known example of such an online marketplace.

(3) According to the Product Range

1) Single product. Single product store is dedicated to a single product without selling anything else. Such sites depend on tempting big number of customers to buy the single product.

2) Product, customers or industry specific. Some e-commerce sites sell a specific type of products manufactured by different manufacturers. Their attention is towards selling and serving the consumers of that specific industry. For instance, Diapers.com sells products only related to toddlers ^[19] . Another site called Etsy.com sells only handmade things.

3) All product types. Here, everything is sold on a single website. A retail store is a good example and is a place where every type of manufactured products are sold to customers. Such stores give a wide-array of product types and options to customers—sometimes counting in millions.

Any e-commerce site is defined mainly by one of these types. Its customer demography ^[20] , scale and other factors could be understood by understanding which category or categories it sits in.

[1] wholesaler [ˈhəʊlseɪlə] n . 批发商

[2] establishment [ɪˈstæblɪʃmənt] n . 确立，制定

[3] sporadic [spəˈrædɪk] adj . 零星的

[4] discontinue [ˌdɪskənˈtɪnju:] v . 停止，废止

[5] jeopardize [ˈdʒepədaiz] v . 危害

[6] reversal [rɪˈv3:sl] n . 颠倒，反转，反向，逆转

[7] fiscal [ˈfɪskl] adj . 财政的，国库的，会计的

[8] considerably [kənˈsɪdərəbli] adv . 相当地

[9] geographical [ˌdʒi:əˈɡræfɪkl] adj . 地理学的，地理的

[10] eliminate [ɪˈlɪmɪneɪt] vt . 排除，消除

[11] likelihood [ˈlaiklihʊd] n . 可能，可能性

[12] adequately [ˈædɪkwətli] adv . 充分地

[13] internationally [ˌɪntəˈnæʃnəli] adv . 国际性地，在国际间

[14] categorize [ˈkætəɡəraiz] v . 加以类别，分类

[15] firsthand [ˈfɜ:stˈhænd] adj . 直接的，直接得来的，直接采购的 adv . 第一手地，直接地

[16] predefine [ˈpri:dɪˈfain] vt . 预先确定

[17] antiquity [ænˈtɪkwəti] n . 古代；古老；古代的遗物

[18] rarity [ˈreərəti] n . 稀有

[19] toddler [ˈtɒdlə] n . 初学走路的孩子

[20] demography [dɪˈmɒɡrəfi] n . 人口统计学 gvlxDIcvKI8BOO06ioo74F9z5uy14yFQgnBGQP1TBpC9KcMDYWBTZd4h9IUuAwuf