1. Definition
E-commerce (electronic commerce) refers to the buying and selling of goods and services over the internet. It encompasses all activities related to online transactions, including ordering, payment, delivery, and customer support. E-commerce provides businesses with a platform to reach a global audience and offers customers the convenience and flexibility of online shopping. With advancements in technology and digital payment systems, e-commerce has become a core aspect of the modern economy.
2. Scope
E-commerce is diverse and applies to various areas:
- Retail: Selling clothing, electronics, groceries, and other consumer goods through online shops or marketplaces.
- Services: Booking travel, streaming content, or ordering food delivery.
- Business-to-Business (B2B): Companies buy and sell goods and services directly from each other, such as raw materials or software.
- Marketplaces: Platforms like Amazon, eBay, or Etsy connect sellers and buyers.
- Subscriptions: Recurring payments for products or services like software, fitness, or entertainment.
In addition to physical goods, e-commerce now includes digital products such as e-books, music, and software, thanks to digitization.
3. Types of E-Commerce
E-commerce can be classified into several categories based on the parties involved:
- Business-to-Consumer (B2C): Companies sell products or services directly to individual consumers. Examples include online stores like Amazon or Zalando.
- Business-to-Business (B2B): Commerce between businesses, such as Alibaba or platforms for industrial supply chains.
- Consumer-to-Consumer (C2C): Individuals trade directly with one another through platforms like eBay or classified ads.
- Consumer-to-Business (C2B): Individuals offer goods or services to companies, such as freelance work platforms.
- Mobile Commerce (M-Commerce): E-commerce transactions conducted through mobile devices like smartphones or tablets.
E-commerce continuously evolves, incorporating new technologies such as artificial intelligence, virtual reality, and blockchain to enhance user experiences and optimize business operations.