Scope of E-commerce
E-commerce, short for electronic commerce, refers to the buying and selling of goods and services over the internet and other electronic networks. It encompasses a wide range of activities, including:
- Online retail: Selling physical products directly to consumers through online stores like Amazon, Walmart, and Etsy.
- Online services: Offering intangible services, such as software, subscriptions, and consulting, through online platforms.
- Digital goods: Selling digital content, such as music, movies, and software, online.
- Online auctions: Facilitating the sale of goods and services through online marketplaces like eBay.
- Business-to-business (B2B): Transactions between businesses that involve buying and selling goods, services, or information online.
- Business-to-consumer (B2C): Transactions between businesses and individual consumers.
- Consumer-to-consumer (C2C): Transactions between individuals, typically facilitated by online marketplaces like Craigslist.
Types of E-commerce
E-commerce can be classified into several types based on various factors:
Based on Transaction Model:
- Pure-play: Businesses that operate exclusively online, without any physical stores.
- Click-and-mortar: Businesses that operate both online stores and physical locations.
- Brick-and-mortar with e-commerce: Physical stores that offer additional online shopping options.
Based on Product Type:
- Physical goods: Tangible products sold online, such as clothing, electronics, and home goods.
- Digital goods: Intangible products sold online, such as software, music, and ebooks.
- Services: Intangible offerings sold online, such as consulting, web hosting, and financial services.
Based on Business Model:
- Subscription-based: Selling products or services on a recurring payment basis.
- Pay-per-use: Charging customers based on usage of products or services.
- Freemium: Offering a basic version of a product or service for free, with premium features available for a fee.
- Affiliate marketing: Promoting products or services of other businesses and earning a commission on sales.
Based on Geographic Reach:
- Domestic: Transactions within the same country.
- International: Transactions across borders.
- Global: Transactions occurring worldwide.