Online shopping has been gaining popularity since the unfortunate occurrence of the "Coronavirus" or "Covid-19" pandemic and the resulting worldwide blockage. Because of this, most people have to do their shopping or business online using their computers or smartphones with an internet connection from their location. Fortunately, this has been made possible by two popular networks known as e-commerce and e-business.
Most people think that these two terms mean the same thing. In fact, they are not, but they are closely related.
Definition of e-commerce
The term e-commerce is an acronym that refers to "electronic 'commerce" and refers to the process of selling and buying products through an online store. Unlike a brick-and-mortar store, there is no face-to-face interface between the seller and the buyer for the transaction to take place.
Some e-commerce models are as follows:
1. business-to-business (B2B).
This refers to any type of electronic transaction of products or services that takes place between two businesses.
2. business-to-consumer (B2C).
This refers to any type of electronic transaction of products or services that takes place between the seller and the customer. This is by far a very common type of e-commerce.
This type of e-commerce is generally more dynamic and easier to perform. With the establishment of many online stores, B2C has increased a lot in recent months due to the lockdown. You can now easily find almost any type of online store and in any niche, you want over the internet. They sell all kinds of physical products like books, gadgets, clothes, tools, accessories, etc., and digital products like e-books, information, online courses, etc.
Many people move more to online shopping than physical shopping because it is more convenient and the prices are usually cheaper even with shipping costs. Another plus is that most online stores also offer free shipping above a certain amount.
3. consumer to consumer (C2C).
This refers to any electronic transaction of products or services between one customer and another. This can usually be done with the help of a third party, for example, Amazon, eBay, or Etsy as a marketplace for online selling and buying.
4. consumer to business (C2B)
Consumer-to-business is a type of business model where the customer or user creates a product or provides a service that a company or business uses to complement its business structure, improve its business image, or gain advantages over its competitors.
For example, websites such as Fiverr, Upwork, etc., where their freelancers offer their services such as website or logo creations, and any business can use their services if they want.
5. business to administration (B2A).
This refers to any type of transaction that is done between businesses and government agencies over the internet. It includes many different types of services such as taxes, social security, employment, legal documents, etc.
6. consumer to administration (C2A).
This refers to any type of transaction that occurs between the consumer and the government. For example, taxes, education, health, social security, etc.
Definition of e-business
The term e-business is an acronym that refers to "electronic business" and its business is conducted using the Internet, extranets, intranets and website. In this sense, e-business is somewhat similar to e-commerce, but it is more than just selling and buying products or services online.
Essentially, e-business encompasses a broader range of business processes, such as electronic ordering and fulfillment, customer relationship management, supply chain management, etc. In general, e-commerce can be understood as part of e-business.
There are two types of e-business models:
1. pureplay.
This refers to a company that operates only through the Internet and offers only a certain type of product or service in order to gain a larger market share.
2. bricks and clicks
It is a business model adopted by merchants who have physical retail stores and operate their business both online and offline. In other words, the merchants provide both offline and online channel for their customers to shop.
How is e-commerce different from e-business?
The process of selling and buying products over the Internet is simply referred to as e-commerce. However, e-business is not limited to the selling and buying process. E-business is defined as any business that is conducted over the Internet. For example, the information and communication technologies used to enhance one's business. Basically, e-commerce becomes a part of e-business.
It is not necessary for e-business to have a physical presence in the business world. If a company has an office in addition to its physical presence and business operations over the Internet, it can be referred to as e-commerce.
E-commerce refers to any type of business transaction that involves money, but e-business involves both money and supporting activities.
E-commerce requires the use of the Internet to conduct business worldwide, while e-business can use more than the Internet. For example, the use of intranet and also extranet to get in touch with business parties.
Advantages of e-commerce and e-business
Both e-commerce and e-business have revolutionized the way people shop. Customers would have probably enjoyed some of their benefits. Likewise, business owners benefit as follows:
1. cost and time saving for their business.
In the case of a retail business, this means that you have monthly overhead costs such as rent, electricity bills, phone bills, salaries, etc.
If you run your business online, you can reduce or even eliminate some of these costs. Converting your business to e-business can also help make certain jobs easier. For example, it's much easier to send volume discount coupons via email than it is to print out hundreds of coupons and mail them.
2. e-business can be operated around the clock
Thanks to the Internet, any e-business can literally run around the clock with no restrictions on operating hours or days.
3. eliminates location restrictions
The Internet is also capable of crossing all time zones and connecting people worldwide. With a retail store, customers are restricted by proximity to their homes and also by opening hours.
Moreover, with e-commerce, your online store is accessible through smartphones and other mobile devices. This means that people can buy your products from anywhere while you are on the go.
4. Easy to track business growth and target.
There are now many tools and apps that allow you to easily track your business growth and goals and understand your customers' buying behavior. For example, the best-selling products in the last few months, the number of returning customers, the number of cart abandonment, etc.
If you don't perform additional recording task, it is difficult to track and generate such data in a retail store.
5. provide better customer support
The sooner you can respond to your customers' inquiries, the better for your business. Having an online chat feature on your business website will make it much easier for your e-business to meet this need.
With e-commerce and e-business, both you as a business owner and your customers enjoy all the benefits.
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