E-commerce has become a primary element to almost every successful business model. Owner and Founder of Olitris Technologies, Nando Caporicci breaks down the basics of ecommerce to provide entrepreneurs with further insight when it comes to moving their business online.
What is Ecommerce?
E-commerce refers to a commercial transaction that is conducted online and was first introduced in the 1960s via an electronic data interchange on value-added networks. As the availability of internet access and the advent of popular online sellers grew, so did the medium. With no barriers, such as time or distance, shopping online has never been easier.
Breaking it Down
E-commerce business models of all types are thriving, and sales from online stores are expected to increase to 78% by 2020. If you are considering switching to e-commerce or starting a business online, it is imperative that one be aware of the various models and types of e-commerce before getting started. The six basic types of e-commerce are: business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C), consumer-to-business (C2B), business-to-administration (B2A), and consumer-to-administration (C2A).
Ecommerce Models Explained
Nando Caporicci claims that business-to-business commerce encompasses all electronic transactions of goods or services conducted between companies. Producers and traditional commerce wholesalers are often the ones to engage in this type of electronic commerce, and as a result, often do so in large quantities. Business-to-consumer commerce, on the other hand, is one of the most commonly known types of e-commerce, as it uses the traditional retail model, where a business sells to an individual. Examples of these types of stores are everywhere, they include Amazon, Wal-Mart, Target, the Gap, and many more. This model is the most likely to be used by business owners looking to move their store online.
Consumer-to-consumer commerce encompasses all electronic transactions of goods and services conducted between consumers. For the most part, these transaction are conducted through a third-party platform, like eBay or Craigslist.
Consumer-to-business commerce is another model that most people do not think of but is becoming more and more common. This type of e-commerce is very common in crowdsourcing based projects. A large number of individuals make their services or products available for purchase from the companies seeking them.
Business-to-administration commerce encompasses all transactions conducted online between companies and public administration. This area includes a variety of services including fiscal, social security, employment, legal documents and registers, etc. Nando Caporicci states that consumer-to-administration commerce includes all electronic transactions conducted between individuals and public administration. Examples include education, social security, taxes, health, etc. Both of the above models are strongly associated with the idea of efficiency and usability of the services provided to citizens by the government.
Nando Caporicci and the Future of Ecommerce
No matter what type of e-commerce you are engaging in, the main advantage of this style of business conduction is that it does not require a large financial investment. The limits of this type of commerce and are not defined by their geography, and allow the business, consumer and administration endless possibilities.