What is E-Commerce and Types of E-Commerce.

what is E-Commerce. Type of E-commerce.
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Before we understand e-commerce and types of E-Commerce,  Let’s understand what commerce is.

Commerce is nothing but buying and selling goods. It has been around for many years starting from the barter system, where there has been just an exchange of goods to using precious metals to using coins and then paper money and plastic money.


Traditional commerce used to happen face to face so it was limited to a particular geographical location, there was a personal interaction and delivery of goods was instantaneous. It was limited to certain business hours typically during daytime with the advent of the internet came in e-commerce.


E-commerce is a  process of buying and selling goods or services using an electronic medium such as the internet.


Example – Amazon, Flipkart, Olx etc here the sale happens online so you can potentially sell across the world. There is limited personal interaction and delivery of goods and services might take some time. It is available 24/7 and day or night.

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Here is a summary of the differences between traditional commerce and e-commerce which, is popular today.


E-commerce extends to mobile and social media networks. When we say mobile commerce today, you are able to do any transactions from your smartphone or tablet. Like mobile banking, bill payments, ticket booking, etc. In addition, there is a rise of social commerce, which is the use of social media sites like Facebook, WhatsApp to promote and sell products and services.

Payments Method

You can make payments online by multiple ways. You can use credit or debit cards like cards issued by master card and visa. Prepaid and gift cards are a good option too.  Net banking is trustable too, and it lets you choose your favorable bank for direct bank transfer through NEFT and MS.

You can also use an e-wallet Example Paytm wallet now it is mobile payments using UPI is becoming common like google pay, beam, etc.


The advantage of e-commerce is that it is available 24×7 and provides a global reach.  Sellers and Buyers can virtually meet anytime anywhere. There is no need for any intermediaries and it provides the user with more options to compare and select cheaper and better options.


It significantly reduces paperwork and lowers the transaction cost.


Disadvantage of e-commerce

The disadvantage of e-commerce is that there is a lack of personal touch for any type of service. It requires an initial setup cost for hardware, software, and then training and maintenance cost.


Sometimes they are problems with order fulfillment or returns. Security is also a key concern, as there are identity theft malware attacks and denial of services.


Primarily e-commerce is of four types

  1. B2C-

In this model, business sells its products directly to a customer.  Customers can view the product shown on the website and order. Example- Amazon, Flipkart, etc.


  1. B2B


In this model here, business sells its products to an intermediate buyer who then sells the product to the final customer.


For example, a company might sell its product to a wholesaler who will sell it to multiple retailers at some price markup.


  1. C2C

In this model where a consumer sells any of their assets like property, cars, motorcycles, etc by publishing the information on a website where interested consumers can view and do the purchase.


Example buying and selling on OLX, Quicker or Craigslist.



  1. C2B (consumer to business)


In this, model consumers have products or services of value, consumed by the business. For example- social media influencers being paid by businesses to advertise their products.


E-Commerce follows a typical trade cycle or flow..


  1. Pre-Sales

It consists of two steps the first customer searches different websites for purchasing products.


  1. Negotiation

Where online it is selecting a supplier who offers good quality products at the right price and whose terms such as delivery dates etc are agreeable to the customer.


  1. Execution

First, it consists of the order phase where a customer places an order for the selected product. At this phase, he might do the payment upfront or he might do the payment after the delivery too.

In the delivery phase, the supplier processes the order and then the customer receives the delivery of the product then comes settlement this phase consists of invoicing and payment.

If any invoicing means the customer will receive a bill for the purchased product along with the delivery after confirmation of the received product the customer, will pay if he has not paid earlier.

The last step is after sales this phase consists of warranty and after-sale service during the warranty period. Customers will get maintenance services for free or at a minimum cost after-sales.

Services mean in case there are complaints about the product, you can get maintenance service from the supplier at individual visit cost or yearly fee, so this summarizes the e-commerce concepts.

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