Published Mar 24, 2023 E-commerce, also commonly referred to as electronic commerce, is a type of business where buying and selling of products and services is conducted through electronic systems like the internet, computer networks, and other digital technologies. E-commerce transactions can be between businesses (B2B), consumers (B2C), or even between consumers (C2C). Thus, E-Commerce is similar to E-Retailing (E-Tailing), although the latter focuses primarily on B2C transactions. To illustrate a typical e-commerce transaction, imagine that Sarah wants to buy a new dress for her friend’s wedding. She visits an online fashion store on her laptop, browses through the dress options, selects the one she likes, adds it to her shopping cart, and proceeds to checkout. After entering her shipping and payment information, she clicks “place order”. A notification is sent to the seller, who then processes the order, charges Sarah’s credit card, and arranges for the dress to be shipped to Sarah’s address. Sarah receives the dress a few days later and can wear it to the wedding. This example showcases a B2C e-commerce transaction, where Sarah (the consumer) buys a dress from an online store (the seller). However, e-commerce transactions are not limited to B2C, and, depending on the type of business or service, can take place between any combination of buyers and sellers. E-Commerce has become a crucial part of modern-day business, mainly because of its convenience and accessibility. Consumers can shop for products and services from the comfort of their homes, at any time, and from any part of the world. Additionally, e-commerce has opened up doors for small businesses, allowing them to reach a broader customer base beyond their physical locations. E-commerce also enables businesses to automate and streamline their operations, reducing costs and increasing efficiency, which is especially valuable in an increasingly digital world.Definition of E-Commerce (Electronic Commerce)
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Why E-Commerce Matters
Business Economics