What is E-Commerce?

E- Commerce is a type of business, or commercial transaction, which involves the transfer of information via Internet. E-commerce is the buying and selling of goods, services, or the transmitting of funds or data, over an electronic network, primarily the Internet. E-commerce was first introduced in the 1960s via an electronic data interchange (EDI) on value-added networks (VANs). E- Commerce is widely considered the buying and selling process.

Categories of E-Commerce

Mainly E- Commerce can be divided into four major principles.

B2B (Business to Business) – This means companies doing their business with each other. Further explain as manufacturers selling to distributors and wholesalers selling to retailers.

B2C (Business-to-Consumer) – This is a process that selling goods and services to consumers without any human interaction. This process runs through the shopping cart software. Examples for this one are Amazon, E bay etc…

C2B (Consumer to Business) – Can be named as a reverse auction or demand collection model, enables buyers to name or demand their own price, which is often binding, for a specific good or service. The website collects the demand bids then offers the bids to participating sellers.

C2C (Consumer to Consumer) – Is a business model that facilitates the transaction of products or services between consumers. This is based on online classified ads, forums or marketplaces where individuals can buy and sell their goods.


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Some examples for E- Commerce

Online shopping

In E-commerce online buying and selling takes a major role. Sellers create storefronts that are the online equivalents of retail outlets. Buyers browse and purchase their products. Amazon can be named as an example for this.

Electronic payments

When you buying goods and services through internet you have pay money via in a mechanism way. Electronic payments reduce the inefficiency associated with writing and mailing checks. It also reduces the risk of payments that are doing by currency notes.

Internet banking

At present internet banking is become very popular among people. With the help of internet banking you can do your most of banking activities without going to the bank.

Advantages of E – Commerce


  • Convenience – E-Commerce is a process that fully based on internet. There are many of online stores are there. So we can choose the looking product from internet very easily.
  • Time saving – With the help of E- Commerce we can easily find the goods and services quickly and we can receive our goods and services to our door step with in short period of time.
  • Lower Costs- This is a major advantage of E- commerce. For the spread of e-commerce in all over the world this can be a huge reason for that. Because of this reason many people like to buy goods via internet.
  • Easy to compare– In the E-commerce easy compare is a big advantage for customers, when you select an item you can see a whole description about the goods and you can compare with other goods easily.
  • E commerce will improves the brand image of the company.
  • E-commerce reduce many of paper works.

Disadvantages of E-Commerce

Quality– When customers order goods via online stores they can touch that good and check, this can be a huge disadvantage for customers. Always check if there are a policy to return buying goods, and keep in mind to make sure returning good is an option.

Privacy and security– Customers have to keep in mind before you pay online transactions and be sure to check the sites certificates of security.Otherwise customers loose money and goods both.

Hidden costs– When buying good via online markets keep in mind to check the exactly price with hipping and taxes etc.. sometimes there may be hidden fees that won’t show up on your purchasing bill but will show up on your form of payment..


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