Types of E-Commerce
-There are several types of electronic commerce. The most common is business to consumer, in which a business sells products or services directly to consumers over the Internet. An example of a business to consumer e-commerce transaction would be an individual purchasing a pair of sneakers through Nike's website.
-Another type of electronic commerce is business to business, where companies sell products or services to other companies over the Internet. An example would be the company GoDaddy, which sells domain names, websites, and hosting services to other businesses.
-Consumer to business electronic commerce involves consumers selling products or services to businesses. You've taken part in this form of e-commerce if you've ever completed a paid online survey where you've given your opinion about a product.
-Finally, there is consumer to consumer e-commerce, which is where consumers sell products to other consumers. An example would be one consumer selling something that he or she no longer needs or wants to another consumer via a site like eBay or Amazon.
Advantages and Disadvantages
Let's take a look at some of the advantages and disadvantages of electronic commerce.
The Advantages
1. Cost Effective
The entire financial transactions will eventually become electronic, so sooner conversion is going to be lower on cost. It makes every transaction through e-commerce payment a lot cheaper.
2. Higher Margin
E-commerce also enables us to move better with higher margin for more business safety. Higher margin also means business with more control as well as flexibility. You can also save time from the e-commerce.
3. Better Productivity
Productivity here means productivity for both companies and customers. People like to find answers online because it is faster and cheaper, and it costs a lot cheaper expense as well for the company.
4. Quick Comparison
E-commerce also enables you to compare price among several providers. In the end, it leads you to smart shopping. People can save more money while they shop.
5. Economy Benefit
E-commerce allows us to make transaction without any needs on stores, infrastructure investment, and other common things we find. Companies only need well built website and customer service.