Categories of eCommerce and their Advantages
  • Admin
  • 17,Jun 2022
  • Business

eCommerce, often known as electronic commerce or online commerce, is the practise of exchanging financial and other transactional information and funds electronically through the World Wide Web. The term "eCommerce" is commonly used to refer to the purchase and sale of tangible goods conducted over the internet; however, it can also be used to represent any type of economic transaction conducted over the internet.

In contrast to the broader concept of "e-business," which encompasses all aspects of doing business online, "eCommerce" refers only to the buying and selling of products and services through the Internet.

On August 11, 1994, a man in the United States sold a CD by the band Sting to a friend via his website NetMarket, an American retail platform that is considered the beginning of eCommerce. This represents the earliest known instance of electronic commerce (or "eCommerce") taking place over the Internet.

Since then, eCommerce has developed, facilitating the search for and acquisition of goods through various internet venues. eCommerce has been beneficial for businesses of all sizes, from sole proprietorships to multinational conglomerates, because it allows them to reach a far wider audience and sell more products.

Between 2021 and 2025, eCommerce sales would increase at a CAGR of little over 18 percent, reaching INR 8.8 trillion.

eCommerce, or internet-based commercial transactions, are typically understood to refer to the acquisition of tangible goods or services through the use of electronic communication technologies. A more precise method to describe the nature of a given online exchange is to refer to the specific eCommerce subcategory into which that deal fits. There are six distinct flavours of online retailing.

  • Business-to-Business (B2B)
  • Business-to-Consumer (B2C)
  • Consumer-to-Consumer (C2C)
  • Consumer-to-Business (C2B)
  • Business-to-Administration (B2A)
  • Consumer-to-Administration (C2A)

    Business-to-business (or B2B) eCommerce encompasses all forms of electronic commerce involving the purchase and sale of goods and services between businesses. In this form of online commerce, the connection between manufacturers and retailers selling to end users is clarified. This can help wholesalers get a leg up on the competition.


    Business-to-consumer (B2C) e-commerce is rapidly becoming the dominant model for conducting business online. E-commerce in this form is popular because it enables buyers to compare prices, read feedback from other buyers, and access a wider variety of products than they would in a physical store. This segment of eCommerce helps companies connect with their clients on a more individual level.


    All electronic transactions between consumers constitute this tier of eCommerce. Online marketplaces (like Facebook's) and social media platforms (like its marketplace) are common places where such transactions take place (Craigslist).


    C2B eCommerce, in which a consumer offers their services or products to other businesses, is not the most common kind of online shopping. A graphic designer tweaking a corporate logo or a photographer shooting product shots for an online store both fall into this category.


    All commercial and government dealings are included in this online shopping grouping. Multiple services, including those pertaining to work, legal documentation, and social security, are involved in this domain.


    C2A eCommerce, which stands for "business-to-government" eCommerce, is another well-liked subset of the broader eCommerce industry. This is the case, for instance, when it comes to both taxes and healthcare.


The primary benefit of eCommerce is that it provides access to a worldwide market with no initial capital outlay. Because of the lack of geographical constraints imposed by this style of trade, consumers may easily access all of the information they need about products and services offered by businesses all over the world and make informed purchasing decisions.

eCommerce cuts down on the length of the distribution chain and, in some cases, eliminates it altogether by facilitating direct communication between manufacturers and end users. In this approach, a line of communication may be established between the manufacturer or service provider and the consumer, allowing the latter to tailor their offerings to the specific needs of the former.

Because of the enhanced proximity between suppliers and customers made possible by eCommerce, businesses are more productive and competitive, while consumers enjoy better service and more effective pre- and post-sales assistance. New kinds of electronic commerce provide consumers with access to virtual storefronts that are always available, regardless of time or location.

Reduced expenses are a common benefit of doing business online. An organization's transaction costs and, by extension, the prices they must charge their consumers, can be drastically reduced when they adopt business processes that are as simple as possible.

Examples of eCommerce:

Depending on the nature of the interaction between the seller and the buyer and the goods or services being traded, e-commerce can take on a number of distinct shapes.

  1. Retail:

    When a company sells an item to a consumer without going through a middleman.

  2. Wholesale:

    Wholesale is the selling of goods in large quantities to a business that will then resell them to end users.

  3. Dropshipping:

    The practise of selling a product that another company produces and ships to customers.

  4. Crowdfunding:

    Crowdfunding is the process of soliciting monetary contributions from potential buyers before a product is really available.

  5. Subscription:

    The act of purchasing a product or service repeatedly until the subscriber cancels the service.

  6. Physical products:

    Any product that can be touched and felt and has to have its stock restocked and its orders shipped out physically as sales are made.

  7. Digital products:

    Media, documents, and forms that can be seen online but whose download and use require payment.

  8. Services:

    Skill(s) offered for hire in exchange for financial reward. In exchange for payment, you can use the service provider's time.