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E-Commerce | Electronics Commerce


E-Commerce was developed in the early 1970s with the Electronic Funds Transfer (EFTs). Funds were electronically routed from one firm to another. It was limited to large business firms. Later on, EDI (Electronic Data Transfer) was used at large. It was used to transfer routine data and then it was converted into financial transactions. The trend of eCommerce boosted up with the Invention of the World Wide Web (WWW). Now business operations are controlled using applications over the internet. Online shopping is at its peak now. To what extent it negatively affects a large business, we may not sure to say about but it greatly helped those who lacked the capital to start their business. Yes, eCommerce is really an amazing tool to build and promote a business.

Let’s take a look at what E-Commerce is;

Definition Of E-Commerce

What is e-commerce? 

E-commerce means buying and selling goods through electronic devices (like computers, smartphones, etc.) using the internet. 

E-commerce is a business process where electronic business is implemented over the physical business.

According to the e-commerce definition, we explained the areas of eCommerce and e-commerce meaning. But there is another term that is used besides e-commerce. And that is E-Business. It is the broader definition of eCommerce.

What is e-business?

E-Business refers to the internal business operations that are managed electronically. For instance, 

Product Designing (using graphics designing software)

Manufacturing (controlling production operations using computers)

Ordering and Receiving Supplies (using computers over the internet)

Receiving online orders and their fulfillment 

Providing services.

The scope of e-business is not confined to only buying and selling of goods and services. It covers all areas of e-commerce together with internal business processes such as;


Inventory Management

Human Resource Management


Classification of E-Commerce

E-Commerce is classified according to the direction of transactions, nature, and interactions with the second party. 

What is Business-to-Business (B2B)?

Business-to-Business e-commerce is commonly referred to as B2B e-commerce. In B2B e-commerce, both seller and buyer are business organizations. Business units also need inputs, supplies, or raw materials from other business organizations to complete their production process. 

For instance, many parts of automobiles like batteries, lights, etc. are made outside the factory. 

Bank of America offers its commercial clients banks’ a global loan syndication service that links the applicants with potential lenders. In this regard, they place orders with other business entities.

What is Business-to-Consumer (B2C)?

Business-to-Consumer e-commerce or B2C eCommerce is generally a retail transaction. Business or manufacturing concern sells their products to customers, individual shoppers. 

For example, online booking of air tickets using the internet. Amazon, which is a larger online marketplace, allows consumers to buy products online globally.

What is Consumer-to-Business (C2B)?

In Consumer-to-Business C2B e-commerce, individuals sell their products or services to business organizations. Sometimes they bid for their services on various platforms which are known as the freelance marketplace. In such a case, the individual seller is called a freelancer.

For Example, millions of web developers bid to sell their services using online platforms like Fiverr, Upwork, etc. to build a website for different business organizations to boost up sales level and provide brand knowledge to the public. 

What is Business-to-Business-to-Consumer (B2B2C)?

B2B2C is an eCommerce model in which one business unit sells its products or services to another business (client business). And the client business sells the products to consumers. The client business holds its own customers.
For example, a software developer sells his POS (Point of Sale) to a software house. The software house further sells a variety of POS Software to various business units including retail, wholesale, etc.
Amazon is also engaged in B2B2C e-commerce, where many business entities either list their products on Amazon or sell to Amazon. Then Amazon ships these products to the consumers when they order online.

What is Consumer-to-Consumer (C2C)?

C2C is an eCommerce model in which one consumer sells his products to another consumer by advertising on social media like Facebook, Whatsapp, etc. Also, they publish their product in newspapers. In these ways, one consumer can approach another to buy products or services.
Many people offer their services on Fiverr, Upwork. Other people or business units may hire them for their services for some time. When someone needs to sell his property or vehicle, he also publishes details about his product on social media platforms. It is also a C2C eCommerce model.

What is E-Government?

It is an EC model, a government entity is involved in eCommerce either
  • by providing goods or services to the citizen (G2C) or business units (G2B)
  • by buying goods or services from business organizations (B2G). 

Government-to-Citizen (G2C)

The government provides its citizens the following services,

  • information about various government departments (e.g. COVID-19 Updates, tourism, taxation policies, etc.),
  • various welfare schemes for citizens (e.g. subsidies, interest-free loans, housing schemes, etc.),
  • different application forms to be used by the citizens (application forms for jobs, tax returns, etc.)
Nearly every government organization develops a website where its functions and services are clearly mentioned. And the citizens of a country may get information about a government organization by accessing the websites. The revenue department publishes the tax policies there, so the business entities and tax filers may calculate their payable taxes according to the slab rate
Moreover, the university students may also find valuable statistics and information about their research from these websites regarding economic surveys, imports and exports statistics, the population of a country, etc. 

Government-to-Business (G2B)

In G2B eCommerce, the government provides services or products to business units. G2B includes the publication of government policies, tenders, auctions, and various services. Also, tax policies, trade restrictions, import quotas, etc. are mentioned on these platforms. In fact, each kind of information is provided which is required for the smooth functioning of business firms. 
All of this arrangement is made to avoid uncertainty because uncertain conditions may adversely affect the business functions.

Future of E-Commerce

Many business units failed in eCommerce due to less marketing knowledge and experience. But it does not mean that the eCommerce days are numbered. In fact, eCommerce is trending increasingly since the last decades. We may see big eCommerce tycoons like Amazon, eBay, Alibaba, etc. These EC companies are making huge profits because the whole world can access their products and services easily and get their desired products at their doorstep. 

The Success of EC Market

Their success lies in the fact that they have to build consumer equity and loyalty by providing quality services and customer support to their customers. 

Due to some bad companies, the EC marketplace became questionable for some people.

It is because sometimes the delivered product is not the same as shown on the online platform. Which results in distrustfulness and affects the goodwill of the company. 
That is why companies having these practices lost their place in the EC market. Therefore, companies like Amazon, eBay, etc. mainly focused on quality to maintain strong customer relationships. So that their customers have no fear of losing their money for cheap products.

Concluding Remarks

The above whole discussion was about the Models of E-Commerce. Advancement in EC enabled many small-sized business units to expand their business worldwide or globally. 
Before invent of eCommerce, it was difficult to expand the business unless you have sufficient funds to open a store in another city or country. Which also required hiring more and more staff and increasing expenses as well. Which minimizes the profits. But with the help of eCommerce, anyone can build a virtual shop on the internet. You should need just to receive orders and deliver to customers through courier services like DHL, Leopards Courier, etc.

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