E-Commerce: Easy and Flexible Guide With Definition, 6 Types of Business Models, and Platforms

Over the past few years, buying stuff online has been a popular act, and in the last three years, especially after COVID-19, it has become the norm of buying, selling, and advertising. So, what is E-commerce, and how is it used nowadays? 

E-Commerce: Definition

Simply put, e-commerce is a process in which you sell or buy online products or services. It paved the road for various interactions to be done without physical connection, and this is mainly seen during our post-COVID era. Now, let’s find out the advantages and disadvantages of E-Commerce.

E-Commerce Advantages

Online transactions have become more accessible and more flexible than physical transactions. Therefore, e-commerce has many advantages to be considered.

• Make money 24/7: One of the best features of not having a physical place is that you are not limited by certain working hours. With e-commerce, you can keep the buying process working while asleep and celebrate your profits in the morning.
• Work from anywhere in the world: Having an online store lets you work wherever you are. All you need to do is turn on your PC or smartphone and get into business.
• Pay less or nothing: Starting an e-commerce business costs way less than starting in a physical location and spending lots of money to rent or buy a place. Some online businesses, such as print-on-demand products, don’t need a starting amount of money; you can start your business immediately. 
• International business: E-commerce can easily spread to other countries in the world, with different currencies, continents, and audiences. Having this mixed marketplace allows your brand to grow faster and expand to many regions of the world without you having to leave your place. By implementing effective fulfilment strategies, you’ll even be able to offer fast delivery worldwide.
• Save the cost of employees: Just like you get to work from anywhere in the world, you also get to hire people from anywhere in the world. This allows you to save a lot of money that you would normally spend to hire employees in physical places. Moreover, when starting your online business, you don’t need people helping you at the beginning; you can run the whole business by yourself until you are ready to hire someone. In addition, you can always outsource employees from other countries where life expenses are much less than yours. For example, you can run a custom print shirt business even if you do not know how to create a shirt design or own a printer. All you need is to liaise with an online shirt printing service where you can order custom-made designs based on custom designs.

E-Commerce Disadvantages

Now that we have come across some advantages of e-commerce, let’s see the other side of it or the disadvantages that might affect your business. 

• Highly competitive market: Online businesses can get really competitive when it comes to attracting customers. If you are selling a certain product that is wanted by so many people around the world, you may want to think of a different marketing strategy that will make you stand out.
• If you are late, you lose your customers: One of the benefits of buying from a physical store is that your questions are answered on the spot. On the other hand, if you run an online store and are late in replying to your customer’s questions, they may get bored and go to a different store or website. Therefore, you need to consider ways to be online 24/7, whether by hiring someone to reply to your customers or a bot that can do the job.
• No human touch: in physical stores, customers get to interact with salespeople; they get to discuss their opinion about an outfit, for example, or try on some clothes before buying. However, this is not an option in online stores, as you purchase the items you select from the store without trying them first or having the sense of human interaction behind the screen. 

Types of E-Commerce

E-Commerce is not just a process of electronic trading that takes place on the Internet. There are various specific details concerning this business that you should be familiar with before starting your own. Without further ado, let’s get to know the six basic types of e-commerce.

E-Commerce is not just a process of electronic trading that takes place on the Internet. There are various specific details concerning this business that you should be familiar with before starting your own. Without further ado, let’s get to know the six basic types of e-commerce.

1. Business to Business (B2B)

This e-commerce business model depends on companies or businesses marketing their services to other businesses. A great example of a B2B business would be Alibaba. This Chinese B2B platform was launched in 1999 and is now the biggest e-commerce B2B platform for small businesses in various fields. Another great B2B platform is Faire, a wholesale marketplace connecting retailers and independent brands.

2. Business to Consumer (B2C)

While the B2B business model sells its products to other businesses, the B2C business model sells its services and products to customers who are the end users of these products. Perfect examples of this type of e-commerce would be Amazon, Netflix, an online or offline store, or your internet provider. 

3. Consumer to Consumer (C2C)

Just as the name suggests, the C2C model allows customers to buy and sell from one another on an online platform. A typical example of this model is Craigslist. This platform connects those who want to market their services or ask about a certain topic. It also allows people to list their properties and announce job vacancies. 

4. Consumer to Business (C2B)

In this model, the traditional business model is flipped. Instead of consumers being the end users of a certain business, they now get to offer their own products and services to various businesses on C2B websites and get their profits in return. There are many platforms based on the C2B model, and the first one here is Upwork, as it is the leading C2B website of all. You can also use Freelancer or Fiverr. 

5. Business to Administration (B2A)

Business-to-Administration model is also known as Business-to-Government; it is based on online transactions between businesses and public administrations. In this business type, companies sign a long-term contract to work only with governmental websites and offer them their services. Among their provided services are social security and employment services.

6. Consumer to Administration (C2A)

This model is also known as the Consumer-to-Government model, and it consists of online transactions between individuals and public administration. There are way too many examples of this type of e-commerce. For example, in the health sector, you can find services for available appointments, pay for health services, and get information about diseases or illnesses. You can also use this model in filing tax returns or in distance learning. 

E-Commerce Platforms to Start Your Business

Starting an online business might sometimes be intimidating when it comes to the technical process. However, you don’t have to worry about it much, as there are multiple website builders that can do this job for you.

For entrepreneurs diving into the e-commerce world, choosing the right dropshipping automation software becomes pivotal for scaling operations. An outstanding example is Spark Shipping, which offers features like full product data integration, intelligent order routing, and automated order processing. These capabilities ensure your e-commerce platform runs smoothly by synchronizing your inventory with vendors and providing timely tracking updates to your customers.

What are website builders?

Website builders are platforms that are made to assist you in creating and building your online business website step by step. One of the most important features to look for while choosing your website builder is the drag-and-drop feature. This feature allows you to customise your website as you like, choose your favourite theme, and select your preferred template. 

These website builders come with a variety of plans; some are free, and others are premium. Now, let’s check some of these websites to see what works best for your business. 

1. Shopify

Shopify is, without a doubt, one of the best e-commerce platforms out there. It is perfect for beginners and professionals and offers affordable plan prices based on your preference. Moreover, it allows you to build your website from scratch with multiple amazing features, such as drag-and-drop and creative templates. 

2. Wix

Wix is a very popular drag-and-drop website builder. It offers free and monthly plans starting from $14 per month. The website builder also gives you over 900 templates to choose from, in addition to customising every little detail in your website. Moreover, Wix is very easy to use but could be a little hard for beginners at first. 

3. WooCommerce 

If you have a WordPress website, this WP plugin lets you control your online store from the dashboard on WordPress and add all the required features. You can download WooCommerce and enjoy its free and premium plans on your WordPress website.

4. BigCommerce

BigCommerce is one of the best website builders you can use. It offers many valuable features and is very good for those with a solid business who want to upgrade. This website builder works as real support to various businesses, helping them evolve and grow in the market. However, this does not mean that it won’t work with small businesses; it just means that medium, large, and fast-growing businesses can benefit more from its equipment and features that help them grow rapidly.

If you are considering starting your e-commerce store, check these website builders to decide what best suits your business. E-Commerce is a significant asset in the trade world nowadays. It contributes to each and every commerce process. Even physical stores and brands are now launching their online stores to go with the flow. To streamline operations and enhance the customer experience, businesses should prioritize seamless ecommerce integration, ensuring their online store seamlessly connects with various systems, such as payment gateways, shipping providers, inventory management tools, and marketing platforms.

E-commerce can also work as a good side hustle to earn more money whenever you have time. As previously mentioned, you don’t always need a huge budget to start your business; you can always start an online store and sell your print-on-demand designs. So, don’t let anything stop you from starting your business and becoming your own boss!