"E-commerce is short for 'electronic commerce."

 

E-commerce refers to the process of transacting or facilitating business on the Internet. It involves buying and selling goods and services online, but it's not limited to these activities alone. Any transaction that takes place electronically falls under the umbrella of e-commerce.

 

Examples of E-commerce.

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Online Shopping

E-commerce is a popular way of buying and selling goods on the Internet. Sellers create online storefronts that are equivalent to retail outlets. Buyers can browse and purchase products with just a few mouse clicks. While Amazon.com wasn't the first platform for online shopping, it is undoubtedly the most renowned destination for online shoppers.

 

Electronic Payments

When you shop online, paying for your purchases requires an online payment system, which payment processors and gateways can facilitate.

 

Electronic payments eliminate the inefficiencies and potential risks associated with writing and mailing checks and the safety concerns that arise when using cash.

 

Online Auctions

When you think of online auctions, you think of eBay. Physical auctions predate online auctions, but the Internet made them accessible to many buyers and sellers. Online auctions are an efficient mechanism for price discovery. Many buyers find the auction shopping mechanism much more interesting than regular storefront shopping.

 

Internet Banking

Today, you can perform all banking operations without visiting a physical bank branch. The most significant driver of e-commerce was the interfacing of websites with bank accounts and, by extension, credit cards.

 

Online Ticketing

Air tickets, movie tickets, train tickets, play tickets, tickets to sporting events, and just about any ticket can be booked online. Online ticketing eliminates the need to queue up at ticket counters.

 

Types of E-commerce

E-commerce can be classified based on the type of participants in the transaction:

 

Business-to-business (B2B) B2B e-commerce transactions are those in which both transacting parties are businesses, such as manufacturers, traders, retailers, and the like.

Business to Consumer (B2C) When businesses sell electronically to end-consumers, it is called B2C e-commerce.

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Consumer to Consumer (C2C) Some of the earliest transactions in the global economic system involved barter -- a type of C2C transaction. However, C2C transactions were virtually non-existent in recent times until the advent of e-commerce. Auction sites are a good example of C2C e-commerce.

Benefits of E-commerce The primary benefits of e-commerce revolve around eliminating time and geographical distance limitations. In the process, e-commerce usually streamlines operations and lowers costs.

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Specialized Forms of E-commerce. On some platforms, e-commerce has shown promise for explosive growth. Two such examples are:

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M-commerce is short for "mobile commerce." The rapid penetration of mobile devices with Internet access has opened new e-commerce avenues for retailers.

F-commerce is short for "Facebook commerce." Facebook's immense popularity provides a captive audience for transacting business.​​​​​