A Basic Guide to E-Commerce


In the modern, busy world of today, most people have neither the time nor desire to buy, sell and go to the bank. That’s where E-Commerce comes in.
Rather than being used strictly for one thing or another, however, there are many different types of eCommerce that are specified for certain transactions.

E-Commerce – Definition and Use

E-Commerce definition is easy. It simply means the act of selling or buying online. The functions of this technology include electronic funds transfer, internet marketing, mobile commerce, EDI, or electronic data interchange, online transaction processing, and more.

Many e-commerce transactions are associated with buying books online and downloading music, but the real count for uses far exceeds that. Of the three main areas that e-commerce has – online auctions, online retailing, and electronic markets – there are numerous subunits to each one which makes up the general abilities and conveniences.

Some of these subunits include the services:

– Online exchanges in finance with currency.

– Buying and selling

– Direct online retail markets for customers

– Marketing through fax and/or email, such as sending newsletters, to potential or current customers

– Assisting with new service and product launches

Types of E-Commerce

Often, when thinking of e-commerce, the first thought that comes to mind is a transaction being done between a supplier and buyer. Although this is correct, it goes further than that, dividing into six different groups with various types of eCommerce. These groups are:

1. B2B, or Business to Business

2. B2C, or Business to Consumer

3, C2C, or Consumer to Consumer

4. C2B, or Consumer to Business

5. B2A, or Business to Administration

6. C2A, or Consumer to Administration


1) Business to Business

This aspect covers services done between companies as well as all electronically completed transactions of goods.


2) Business to Consumer

This type is set apart because of its job of establishing the online business relationship with final consumers and businesses. The details of B2C tend to involve online stores and the selling of products.


3) Consumer to Consumer

This one encompasses every electronic transaction done between consumers for services or goods. The transactions are often completed through a third party online platform site.


4) Consumer to Business

This is different than the others as it reverses the usual sale and process of goods exchange. Here, the e-commerce tends to involve projects based on crowd sourcing, where a large group of people offer a wide selection of pertinent products or services to businesses that are seeking precisely those types of goods. Market platforms that are familiar with this type of C2B e-commerce often include the ones who sell royalty free products, such as design elements, images, media, and photographs.


5) Business to Administration

This aspect is described as all-encompassing for the online transactions conducted between public administration and companies. Business to Administration covers a large variety as well as quantities of services, especially in areas like legal documents, registers, employment, fiscal, social security, and more. In recent years, types of services like these have increased in demand.


6) Consumer to Administration

This C2A model covers every and all electronic transaction conducted or done between the public administration and individuals. Several examples of these transactions include:

Social security, such as making payments, distribution of information, and more

Taxes, such as payments, properly filing returns, and more

Health, such as payments to health services, information about ailments, appointments, and more

Education, such as online learning and the spreading of information

Advantages of E-Commerce

One of the advantages of eCommerce is its capacity to reach out to an entire global market without having to work with large financial investments. This type of e-commerce does not have geographical restrictions or definitions, which permits customers to see all of their global options. This allows then to gather the information necessary to make comparisons on a global scale, looking at offers from numerous suppliers, regardless of location, before deciding on a purchase.

In giving the final consumers a direct line, the product distribution chain is drastically shortened by this e-commerce, sometimes even gotten rid of altogether. The method of creating a direct interaction between service providers or suppliers and final consumers enables the purchasing preferences to become more individualized, which is especially important when dealing with a specific target market. This another one of the advantages of eCommerce.

E-commerce brings the suppliers closer to established and potential customers, which helps both – it results in the company having a higher productivity while customers get the benefits of higher quality service. Also, with the use of electronic commerce, online stores are open every hour of the day, posing no risk to consumers of running out of time or closing.

Disadvantages of E-Commerce

The disadvantages of eCommerce, which are generally few and far between, include:

The consumers depending almost solely on ICT, or information and communication technologies

Little to no privacy for the users as well as a neutralized economic and cultural identity

Inability to touch or try out the products being sold

Another of one the disadvantages of eCommerce is the potential insecurity of the online transactions, either in conduct or for future reference.

Final thoughts

When getting into the eCommerce business, you need to make sure you take into consideration all the aspects of the market and establish an online store with ease. And when setting up and e-store on WordPress you can easily do that with eCommerce WordPress themes and plugins.

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