We understand how e-commerce to the process of buying and selling products over the Internet. This concept is also used to call online stores. Other ways to refer to this term are eCommerce, e-commerce and electronic commerce.
It doesn’t matter if you write e-commerce, ecommerce, eCommerce or even, if you prefer to say it in Spanish: electronic commerce. This term covers a lot of concepts that we are going to explain here.
The term “e-commerce” may be weird for you too, but surely the concept sounds at least slightly familiar. Keep reading this article and find out what ecommerce means, some of its advantages and what types exist.
What is e-commerce?
An ecommerce or e-commerce is the process of buying and selling products over the Internet. This type of commerce is one that has evolved with the help of the passage of time and technological advances, until it has become completely digital.
The word e-commerce can be used to refer to the universe of online stores created by all kinds of online businesses, from independent artisans and self-employed entrepreneurs, to medium and large companies.
What does e-commerce mean?
As such, e-commerce or ecommerce is an anglicism that means “electronic commerce”.
Let’s go back a little. Do you remember the word “e-mail”? This term, which represents a service through which messages are sent over the Internet, is actually a conjunction of two expressions in English:
e (electronic) + mail (mail)
Basically, the expression “email” is formed, a perfectly acceptable name for that resource. Something very similar happens with the word e-commerce:
e (electronic) + commerce (commerce)
When the e-commerceselling online was an exclusive possibility for a few, having an online store was extremely expensive and not very accessible for those who did not have a large budget to invest. Today e-commerce is within everyone’s reach.There are even those who only sell online, because having a physical location is usually more expensive and there are more restrictions than on a website.
It is important to understand that this ease of reach of the e-commerce is reflected in its growth. According to the , electronic commerce in Mexico reached 401.3 billion pesos in 2021.
This means that it had a growth of 27% against the previous year. That is why it is considered one of the sales channels with the greatest projection today.
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e-commerce, ecommerce or icomers?
Have you come across the words “ecomers”, “e-commerce”, “ecomers“icons”, “and eat” And till “and commers”? They are incorrect ways to refer to the online purchasing process. On the other hand, the expressionse-commerce” and “e-commerce” are both correct terms to refer to electronic commerce.
To understand a little better the e-commerce and how it workswe are going to know the different types of electronic commerce that we can find on the Internet.
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What types of electronic commerce exist?
There are several ways to classify the e-commerce, These are the most common types of e-commerce:
- B2B (business-to-business)
- B2C (business-to-consumer)
- C2B (Consumer to Business)
- C2C (Consumer-to-Consumer)
- Online store
- drop shipping
- Marketplace
- Affiliate e-commerce
- Subscription e-commerce
Let’s talk about each of them depending on their classification. You think?
Types of e-commerce by business profile
The variant used to classify e-commerce It is the type of client to which it is directed. According to this factor, we can find four different models:
- B2B (business-to-business)
- B2C (business-to-consumer)
- C2B (Consumer to Business)
- C2C (Consumer-to-Consumer)
1. B2B (business-to-business)
A B2B or business-to-business is a company sells a product to another company or organization. Sometimes the buyer is the end customer, but can also resell the product to the consumer. For example, the owner of a clothing store who buys his merchandise in bulk and then sells it in his own store. e-commerce.
2. B2C (business-to-consumer)
It is called B2C or business-to-consumer a company sells its product or service to the final consumer. This is one of the most common models and the sales cycle is usually shorter than the rest. An example of a e-commerce B2C It is when a consumer makes an online purchase of shoes directly in the online store of the brand that produces them.
3. C2B (Consumer to Business)
A C2B or Consumer to Business is when a consumer sells a product to a company. A good example of this model would be websites where freelancers open a profile and share their Curriculum vitae or examples of their work, to offer their services to companies. Affiliate marketing also falls into this category.
4. C2C (Consumer-to-Consumer)
A C2C or Consumer-to-Consumer occurs when a consumer sells a product to another consumer. Second-hand sales portals and are the most common example of a C2C e-commerce.
All of these types of e-commerce They will require a constant link with those who acquire your products. It is essential that you know the importance of the .
Types of e-commerce by business model
These types of electronic commerce have as a variable how the exchange between seller and client is generated, that is, through which tools said transaction takes place.
- Online store
- drop shipping
- Marketplace
- Affiliate e-commerce
- Subscription e-commerce
Example of an ecommerce: the online store.
1. Online store
When a brand that produces its own products, or offers a particular service, creates a custom sales website to put his product up for sale, he is said to have your own online store, one of the best means for . For this online business model, it is common for SMEs like Tiendanube, since they offer a quick solution, easy to implement and can manage it themselves.
If this kind of e-commerce It is very similar to what you are looking for to digitize your business or create a new one, so you have to take advantage of the 30-day free promo in Tiendanube. You only need an e-mail, the name of your brand and a password to open your virtual store, and start selling online!
2.Dropshipping
In the eyes of your customers, it could look like an online store. The big difference is that in the dropshipping model, the seller does not have a stock of productsRather, it is a kind of intermediary between consumers and providers.
3. Marketplace
A marketplace is like a large store that houses many small stores. The big difference between an online store and a , is that in the second you can review and compare prices from different sellers, while in the online store you can only see the seller’s “catalogue”.
Another important point to distinguish these two types of e-commerceis that in marketplaces payments and shipments are made through their platform and they usually charge a commission.
4. Affiliate e-commerce
The e-commerce of affiliation is one in which the store does not ship the product, but rather refers the customer and closes the sale through its platform. Shown when posted affiliate linkswhether within the contents of a blog, social networks or even through a campaign, recommending products or services, which lead to a e-commerce external.
When the transaction takes place, the owner of the site from which the sale was generated receives a commission.
5. E-commerce subscription
This is an increasingly common model, it refers to those products or services for which the customer pays a regular subscriptionBe it monthly, bimonthly, yearly, etc. Platforms such as Netflix, Spotify and Audible work with the model of e-commerce of subscription.
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Advantages of electronic commerce
Now that you know about e-commerce, what is it and what is it for surely you will understand better the advantages of ecommerce today. They are more than you can imagine!
- You have access to a larger potential audience.
- It requires less maintenance expenses.
- It offers more flexibility on a day-to-day basis.
- It is relatively safer.
- It allows you to grow and expand more easily.
- Provide a better shopping experience.
Now I explain each of these benefits.
You have access to a larger potential audience
Because it is not restricted only to people who are near a certain city or geographical area, a e-commerce it gives you the advantage of being accessible to a larger segment of users.
Requires less maintenance expenses
To sell online you do not need to invest in rent, cleaning, decoration or fixed salaries of sellers and benefits. Yes, like any business, an investment is required, but it is much less than opening a traditional physical location.
Offers more flexibility on a day-to-day basis
You can be at home, on the beach, in a coffee shop, or anywhere you want, and still work on your e-commerce selling and making money.
It is relatively safer
Contrary to what many people think, having an online store may be the option that most favors your security (and that of your customers). With a reliable platform ( 😉), options, anti-fraud tools, the integrity of your online business and your finances are guaranteed.
Allows you to grow and expand more easily
One of the benefits of a e-commerce is that the barriers are lowered and the possibilities of growth and expansion increase. You can start selling to all of Mexico and soon to the whole world.
Provide a better shopping experience
By giving your potential customer more options —such as making purchases online through , for example— you avoid excuses and purchase objections, in addition to providing payment alternatives and shipping methods.
This way, your buyers are more likely to return because you have an online business that adapts to their needs.
To give you an idea of the current reality of the e-commerce: 8 out of 10 Mexican buyers are satisfied with the online purchases they make through the digital channel, according to the Online Sales Study 2022made by AMVO.
How to create an e-commerce?
If you want test the advantages of electronic commerce and create an e-commercehere we show you step by step how to do it effectively and with good results.
- Define which niche to enter and what to sell.
- Perform a market analysis.
- Purchase or produce the merchandise.
- Create your online store or website with shopping cart.
- Open the social networks of your brand.
- Plan your strategy…
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