Electronic commerce - What is it? advantages and disadvantages, types, and more

electronic commerce

Trade of goods and services through electronic means.

What is electronic commerce?

Electronic commerce is the trade (purchase and sale) of goods and services through the Internet or other electronic means. This occurs mainly through websites and social networks.

This method uses technological instruments to carry out various commercial operations, without the need for direct contact between seller and buyer.

Ecommerce Features

The characteristics of electronic commerce are the following:

• It grants great benefits, both to the buyer and to the seller.
• It is produced through media such as websites, online stores, and social networks.
• In 2019, more than 3,000 million people carried out some transactions related to electronic commerce.
• It allows organizations to save costs, increase their sales and make profits.
• Although it does not demand a person-to-person relationship, it usually makes use of other communication channels to assist the sale or purchase.

Types of electronic commerce

These are the types of electronic commerce that can be carried out:

• Company – company (B2B): commercial transactions carried out between two different companies, via the internet and in which no clients are involved.
• Business – consumer(B2C): commercial relations between the consumer and the producer, to obtain an item or a service through a specific medium.
• Consumer – consumer (C2C): sale, purchase, or negotiation of a product between users.
• Company – employees (B2E): occurs when a company offers its products to its employees, through its website.
• Government – ​​consumer (G2C): occurs when the government allows procedures to be carried out through the internet.

Advantages and disadvantages of electronic commerce

Advantages

The advantages of electronic commerce are the following:

• It makes it unnecessary to go to an establishment, or make long queues, to obtain a product.
• It allows a large amount of cost savings in companies.
• Makes it easier to compare prices.
• It allows you to buy from other parts of the country or various countries of the world.
• It allows for the ability to offer a large number of varied products.

Disadvantages

The disadvantages of electronic commerce are the following:

• It lacks a more direct person-to-person relationship, which can cause problems during the sale.
• It is not possible to test the product before buying it.
• It is necessary to have an electronic device with internet access to make purchases.
• There are security risks for both the buyer and the seller.

Examples of electronic commerce

The following are some platforms that develop e-commerce:

Amazon – Offers its products to the public and also allows others to use it to sell their own items. It is one of the most popular e-commerce platforms in the world.

Dell: This company offers its buyers desktops and laptops so that they can access offers and other different types of products, through its online store.

Staples – This brand offers a simple design and a high range of products for consumers to choose from through its online store.

 

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