What is an Ecommerce Business?
When you think about the internet, you might be asking, “What is an eCommerce business?” You have probably heard of a B2B business or a consumer-to-consumer (C2C) transaction. Which one is better for your business? Let’s take a look! Here are some of the benefits of starting an eCommerce business. Here are five of them! Listed below are a few of the most common.
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Most commercial transactions still take place in traditional channels, but an increasing number of consumers are using the Internet to conduct electronic commerce. By 2006, total eCommerce spending could reach $5 trillion. eMarketer has developed various ways to categorize electronic commerce transactions based on the participants and the type of transaction. Three major categories of eCommerce business involve businesses, consumers, and government.
Consumer-to-consumer e-commerce deals can be complex, but they are still a necessary part of any eCommerce business. This type of online transaction allows a business to sell to a buyer without having to build or maintain infrastructure. The seller and buyer can establish a relationship over time and share information. Consumer-to-consumer transactions also allow businesses to sell to other businesses.
While B2C eCommerce involves consumers, business-to-business (B2B) eCommerce transactions are often more time-consuming and complex. Unlike B2C eCommerce, these deals involve smaller lead pools, contracts, quotes, purchase orders, and more. Likewise, B2B sellers work with suppliers that they know and trust. Here are a few examples of B2B transactions. Listed below are examples of common B2B e-commerce transactions:
In business-to-business eCommerce, consumers make purchases from merchants. Consumers usually make purchases at a point of sale and pay for them by using a credit card, check, or cash. In B2B transactions, a business’s customer selects products and arranges for their delivery through a logistics channel. The customer does not pay at the time of purchase, but instead receives an invoice and settles within the payment terms they agree upon with the seller.
Using C2C platforms for your eCommerce business offers several benefits, but there are a few drawbacks as well. Unlike B2C platforms, C2C transactions are not as secure. In addition, these platforms may not have the quality control you need to avoid scams. Because buyers and sellers are each a consumer, it’s difficult to enforce payment guarantees and quality control. Because of this, buyers should be wary of C2C sellers.
A C2C website will offer a larger selection than a traditional brick-and-mortar store. This is especially helpful for selling second-hand or rare collectibles. It also removes many barriers that traditional small businesses face. While many sellers would like to turn their hobby into their primary source of income, establishing a brick-and-mortar store requires a significant amount of capital. For buyers, it can be difficult to find reasonably priced goods in brick-and-mortar stores. C2C platforms eliminate both of these inconveniences and make conducting business easy from home.