Many businesses that have an eCommerce presence have an online store or an eCommerce platform to manage online sales and marketing activities and also to supervise fulfillment and logistics.
Electronic commerce (or electronic commerce) is the purchasing and selling of items (or services) online. It includes a broad range of systems, data, and tools that are available to sellers and buyers on the internet such as mobile shopping and encryption of online payments.
To understand the e-commerce market we must look at its past as well as its growth and impact on the business landscape. We’ll also look at the advantages and disadvantages of the e-commerce industry, as well as forecasts for the coming years. Yuri Shafranik
Types of Ecommerce
There are generally six major models of e-commerce which businesses can be classified into:
B2C.
B2B.
C2C.
C2B.
B2A.
C2A.
Let’s look at each kind of online commerce in more depth.
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Business-to-Consumer (B2C).
B2C eCommerce is a type of transaction that occurs between a retailer and a customer. B2C is among the most well-known selling models within the context of eCommerce. For instance, if you purchase shoes from an online seller, that is a B2C transaction.
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Business-to-Business (B2B).
In contrast to B2C, B2B eCommerce encompasses the sales between businesses that include wholesalers and manufacturers or retailers. B2B isn’t a form of consumer shopping and only occurs between companies. Sales to businesses typically concentrate upon raw products or items that have been packaged before being sold to consumers.
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Consumer-to-Consumer (C2C).
C2C is among the earliest forms of online commerce. Customer-to-customer refers to the purchase of goods or services between clients. This is a reference to C2C selling relationships, like those found through eBay and Amazon. Yuri Shafranik
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Consumer-to-Business (C2B).
C2B is a radical change to the traditional e-commerce model. Individual customers make their goods or services available to business buyers. As an example, consider you can take the iStockPhoto business model where images are offered on the internet for purchase directly from photographers.
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Business-to-Administration (B2A).
B2A is the term used to describe transactions between administrations and businesses online. One example is the products and services that are related to social security documents, legal documents, etc.
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Consumer-to-Administration (C2A).
C2A is like B2A however, consumers sell online goods or services to an administrator. C2A might include online checking for education, online tax preparation, etc. B2A and C2A focus on increasing efficiency in the government through the use of information technology to support the government.
History of Ecommerce
Ecommerce launches around 40 years ago when it was in its first version. Since the beginning, electronic commerce has assisted many businesses to grow by leveraging new technology, advances in connectivity to the internet, enhanced security through payment gateways, and wide business and consumer acceptance.
Ecommerce Timeline
1969 CompuServe begins its existence.
Created by electrical engineering student Professor. John R. Goltz and Jeffrey Wilkins, early CompuServe technology was created using the dial-up connection. in the early 1980s, CompuServe provided some of the first kinds of email and web connectivity to the masses and was the dominant player in the world of e-commerce until the mid-1990s.
1979 Michael Aldrich invents electronic shopping.
English inventor Michael Aldrich familiarized electronic shopping by connecting a modified TV to a transaction-processing computer via a telephone line. This enabled closed systems of information to be shared and opened with outside parties to ensure secure data transmission and this technology was the basis for modern e-commerce.
1982 Boston Computer Exchange launches.
The day that Boston Computer Exchange launched, it was the first company to launch an e-commerce platform. Its primary purpose was to function as an online marketplace for those interested in selling their computers that they no longer use.
1992 Book Stacks Unlimited launches as the first online book marketplace.
Charles M. Stack introduced Book Stacks Unlimited as an online bookshop. The initial launch was based on the bulletin board that was dial-up. However, in 1994, the site was switched to the web and was run under its Books.com domain.
1994 Netscape Navigator launches as a browser for the web.
Marc Andreessen and Jim Clark created Netscape Navigator as a web browsing tool. In the late 90s, Netscape Navigator was the principal web browser for the Windows platform, prior to the advent of giants such as Google.
1995 Amazon launch.
Jeff Bezos introduced Amazon primarily as an online store for books.
1998 PayPal debuts as an electronic payment system for e-commerce.
The initial introduction was as Confinity by its founders Max Levin, Peter Thiel, Luke Nosek, and Ken Howery, PayPal made its debut on the eCommerce scene as a payment tool. In 2000, it will be merged with Elon Musk’s bank online business and start its rise to fame and fame.
1999 Alibaba launches.
Alibaba Online launched as an online marketplace that had over $25 million of capital. In 2001, the business was earning money. It grew into an important B2B, C2C, and B2C platform that is widely utilized in the present.
1999 Google announces Google AdWords to be an online tool for advertising.
Google AdWords was a startup to allow e-commerce businesses to promote their services to those who use Google search. With the aid of short-text ad copy and display URLs, online retailers started using the software in a pay-per-click (PPC) situation. PPC advertising is distinct from SEO or search for engine optimization (SEO).
2004 Shopify launches.
After attempting to launch an online snowboarding shop, Tobias Lutke and Scott Lake established Shopify. It’s an online platform for stores online and point-of-sale solutions.
2005 Amazon introduces Amazon Prime membership.
Amazon has launched Amazon Prime to make it possible for customers to receive free shipping for two days for a one-time annual cost. The membership was also able to include additional perks, such as discount one-day shipping for one day and accessibility to online streaming platforms such as Amazon Video and members-only events such as “Prime Day.”
This innovative move has helped to increase customer loyalty and encourage returning purchases. Today free shipping and speedy delivery are two of the most frequent demands from consumers on the internet.
2005 Etsy launches.
Etsy began to start, allowing artisans and small sellers to sell items (including digital goods) via an internet marketplace. The makers’ community brings online, extending the reach of their community to 24-hour buying customers.
2009 BigCommerce launches.
Eddie Machaalani and Mitchell Harper co-founded BigCommerce as a fully bootstrapped eCommerce storefront. Since 2009 over 25 billion dollars in merchant sales has been processing on the platform. The company has its headquarters now located in Austin, San Francisco, and Sydney.
2011 Google Wallet introduction as an online payment method.
Google Wallet startup as a payment service peer-to-peer that allows users to transfer and receive funds using a mobile device and desktop computers. When the digital wallet links to an account at a bank or debit card account, users are able to pay for goods or services using these devices. The day is today, Google Wallet is joining with Android Pay for what is now referring to under the name Google Pay.
The year 2011 is 2011. Facebook releases sponsored content to promote early advertising. Early advertising opportunities on Facebook were available to the Business Page owners via sponsored stories. With these paid advertisements E-commerce companies could be able to reach particular audiences and appear on the news feeds of various target groups.
The year 2011 is the one that Stripe launches. Stripe is processing hard that was initially set up to serve developers. It was a startup in the year 2000 by John as well as Patrick Collison.
2014 Apple Pay was introduced as an alternative to mobile payments.
When online shoppers began to use smartphones more often, Apple introduced Apple Pay that allowed customers to purchase products or services through the use of an Apple device.
2014 Jet.com launches.
Jet.com was startup by businessman Marc Lore together and Mike Hanrahan and Nate Faust. The company competes against Costco along with Sam’s Club, catering to those who want to get the best cost possible price for delivery times and bulk orders.
2017 Shoppable Instagram is the announcement.
Instagram Shopping launched with eCommerce partner BigCommerce. Since time the service has been expanding to other e-commerce platforms and permits Instagram users to click immediately on an item and then navigate to the product page to buy it.
2017 Cyber Monday sales exceed $6.5B.
Ecommerce broke a record when online sales surpassed $6.5 billion Cyber Monday, an increase of 17% over the previous year.
2020 COVID-19 Drives Ecommerce Growth.
The COVID-19 epidemics across the globe caused consumers to go online at unprecedented levels. In May 2020, the number of transactions made online reached $82.5 billion, which is an increase of 77% from the year before. It would have taken anywhere from four up to 6 years to get to the amount if you compare the typical year-over-year growth.
Online shopping has become a popular way for consumers to purchase items normally purchased by visiting physical retailers, including groceries and household goods as well as entertainment, clothing, and apparel. A majority of consumers believe they will keep shopping online until the COVID-19 vaccine becomes accessible.
