Lately, people are constantly talking about eCommerce, e Commerce or e-commerce, they’re all valid. But what is E-Commerce? What are the types of E-Commerce? What are the trends in e-commerce?
In this post we will address everything you need to know about E-Commerce. Take notes on everything!
What is E-Commerce?
Electronic commerce, resumed on the term E-Commerce, can be defined as the economic activity that allows the trade of products and services from digital media, such as web pages, mobile applications, and social networks.
History of E-Commerce
This marketing method is from the millennial era.
The beginning of E-Commerce is related to the opening of the Internet for commercial use, in the innovative year of 1991. However, it was not until 1994 that the first company was born with a great bet aimed at electronic channels called Cadabra.
Most likely, you do not know it by that name, even if it is one of the most successful ventures in history. What happened is that in 1995 Cadabra changed its name to Amazon (now you do know what company it is).
Amazon started as an online bookstore that later expanded to all kinds of products, becoming a role model for many other entrepreneurs.
What is E-Commerce for?
We will talk specifically about 3 things that E-Commerce is for:
1. Increase in Sales Opportunities
Brands that are exclusively dedicated to this form of commerce have greater opportunities, since they have access to a global community of millions of users.
2. Launch Innovative Products
Many medium and small entrepreneurs take advantage of E-Commerce to offer novel services or articles, allowing users to know their specifications and even interact with some of its functionalities before purchasing them.
3. Brand Recognition
If you have years of experience, but your brand recognition is extremely low, you need E-Commerce.
Marketing in the Internet community and social networks helps a brand go from being “invisible” to becoming well known by many users.
What are the Characteristics of E-Commerce?
There are many characteristics that differentiate E-Commerce from what we knew as commerce decades ago, and these are some of them:
1. Global Reach
If we go back a few years, for a company to be able to generate sales on another continent it had to be an extraordinarily large organization, with different branches, collaborators, and a great logistical capacity.
By contrast, E-Commerce provides global reach to anyone who wants to get into it. Now consumers from any country can enter your virtual store or account on social networks and place their orders.
Do you know what this term means? It refers to the ability to be present everywhere at the same time.
In traditional commerce, a market is a physical place where we go to buy or sell. In electronic commerce we can do it from anywhere and at any time. For example, a virtual store can serve the public 24 hours a day, regardless of where the customer is.
Another characteristic of electronic commerce is that it encourages constant communication between the merchant and the consumer.
It’s only a matter of seconds, so users can ask questions, comment on products and even raise complaints or concerns.
Types of E-Commerce:
1. Business to Business (B2B)
B2B (business to business), is one where the commercial transaction is only carried out between companies that operate on the Internet. This means that consumers do not intervene. This type of electronic commerce is carried out between online businesses and is usually very common when the online store sells wholesale or distributes components or raw materials, which will later be used by other industries.
On the other hand, the B2B has three modalities that focus on:
1. The market in which the buyer seeks for suppliers.
2. The controlled market that only accepts sellers looking for buyers.
3. The market in which intermediaries want to generate a commercial agreement between sellers and buyers.
2. Business to Consumer (B2C)
It is the best known and it is the one that most online stores use. It refers to online stores that establish a direct business relationship with their consumers. The most notable advantages are:
1. Offers and prices are constantly updated for the customer’s convenience.
2. The customer can access the online store from anywhere through an electronic device, which facilitates a quick and easy purchase.
3. Customer support can be provided directly by different means such as live chat, social media or e-mail. Currently, live chats and live communication have become a key factor, highly required by consumers today, as they are used to social networks and their live communication dynamics.
3. Business to Employee (B2E)
As the name implies, it is mainly centered between a company and its employees. This type of E-Commerce is designed for what is known as “internal customers”. It also refers to the offers that the company offers its employees, through its online stores or web portals.
These are some advantages of Business to Employee:
1. Reduces costs and times in internal company management.
2. Encourages employees to consume the company’s products or services.
3. Internal electronic commerce, with unique opportunities for employees.
4. Motivates the employee’s loyalty towards the company.
4. Consumer to Consumer (C2C)
The final consumer acquires directly from the primary consumer the products that they no longer want or need, while they can give them a new use at very accessible prices. Most of the business that are conducted within the C2C category refers to buying and selling second-hand products, which is a current trend.
Some of the advantages are:
1. Product re-use.
2. Consumers purchase at lower prices and thus take advantage of unique offers.
3. Achieve a greater reach.
5. Goverment to Consumer (G2C)
This type of commerce is carried out when a municipal, federal or state government allows citizens to carry out their procedures online through a web portal.
Some of the advantages are:
1. Time savings.
2. Faster and safer procedures.
3. Electronic backup.
4. Lower costs.
5 E-Commerce Trends for 2022
Every company with an eCommerce business should take these figures into account to make the best decisions.
Below, you can see the list of eCommerce trends for 2022:
1. Sell Globally
Experts predict that nearly a quarter of all e-commerce orders by 2022 will be cross-border trade.
2. Voice Search
This new form of search is here to stay. Users are increasingly using voice search from their tablets, smartphones and voice assistants.
3. Mobile Shopping
This is one of the most popular trends in e-commerce.
E-commerce companies are working to improve the shopping experience for users. According to Statista, 57% of online shopping orders come from smartphones.
4. Artificial Intelligence and Machine Learning
More and more online stores are using artificial intelligence and machine learning to offer consumers a more personalized shopping experience.
5. Loading Time
Speed is important: the consumer will not wait if your website takes a long time to load.
With all these types of E-Commerce and with the trends seen above, you can be sure you’ll find the one that best suits your business. Take advantage of the benefits of digitalization today, to take your brand to the next level.
What are you waiting for to take the next step and build your own digital business? If you’d like some help to design and build your own E-Commerce, don’s hesitate to drop us a line!
Contact us, we will be happy to help you.