What is the
definition of e-commerce?
What is the definition of
e-commerce? E-commerce refers to the purchase and sale of goods and services
over the internet, as well as the movement of funds and data to complete the
transaction. Electronic commerce, or internet commerce, is another name for it.
Today's e-commerce inquiries
mainly revolve around which channels are ideal for conducting business online,
but one of the most vexing issues is how to spell e-commerce correctly. The
truth is that there is no such thing as right or wrong, and it all boils down
to personal preference.
Here’s a few of the variations of how
e-commerce is spelled:
- e-commerce
- E-commerce
- ecommerce
- Ecommerce
- eCommerce
- e commerce
(In simple words, answering the
question "what is e-commerce" is significantly easier than
determining how to spell it, thus we may have to agree to differ on the correct
spelling.)
Different types of e-commerce:
As trade evolves, so do the
methods through which it is carried out. The most traditional forms of
e-commerce models are as follows:
1. Business to Consumer (B2C):
The most prevalent e-commerce model is B2C. When you buy a rug from an internet
merchant, you are dealing with a business to consumer transaction.
2. B2B e-commerce: B2B
e-commerce refers to a company selling a product or service to another company,
such as a manufacturer and a wholesaler, or a wholesaler and a retailer. From
one company to the next E-commerce isn't usually aimed at consumers, and it
frequently involves raw materials, software, or items that are combined. B2B
ecommerce allows manufacturers to sell directly to merchants.
3. Direct to Consumer (D2C):
D2C e-commerce is the most recent e-commerce paradigm. D2C refers to when a
company sells directly to its end client rather than through a retailer,
distributor, or wholesaler. Subscriptions are a popular D2C commodity, and
social selling via platforms like Instagram, Pinterest, Facebook, SnapChat, and
others is popular for D2C sales.
4. Consumer to Consumer (C2C)
e-commerce: Consumer to Consumer (C2C) e-commerce refers to the sale of
a product or service to another consumer. Platforms such as eBay, Etsy, Fivver,
and others facilitate consumer-to-consumer transactions.
5. Consumer to Business (C2B):
When a person offers their services or products to a business entity, this is
known as consumer to business. Influencers who offer publicity, photographers,
consultants, freelance writers, and other C2B professionals are included.
Examples of
e-commerce:
The capacity to offer goods and
services at scale online can benefit everyone from independent freelancers to
small enterprises to the largest corporations.
Here are some
examples of e-commerce types:
1. Retail: The sale of
goods directly to a customer without the use of a middleman.
2. Drop shipping: The
sale of things that are made and shipped by a third party to consumers.
3. Digital products:
Items that can be downloaded but must be purchased in order to utilise them,
such as templates, courses, e-books, software, or media. Software, tools,
cloud-based solutions, and digital assets purchases account for a significant
portion of ecommerce transactions.
4. Wholesale: Products
sold in large quantities. Typically, wholesale products are sold to a retailer,
who then sells them to customers.
5. Services: These are
abilities that are bought and paid for, such as coaching, writing, and
influencer marketing.
6. Subscription:
Subscription services are a common D2C model in which customers purchase
products or services on a regular basis.
7. Crowdfunding: Sellers
can use crowdfunding to raise startup funds to bring their product to market.
The item is made and shipped after a sufficient number of customers have
purchased it.
Successful e-commerce websites:
Every year, e-commerce generates
trillions of dollars in revenue. It's nearly unthinkable today that a firm
wouldn't use the internet to boost sales and profits.
The following is a list of the top ten e-commerce companies:
|
Rank |
Company |
Revenue ($B) |
Market cap. ($B) |
F.Y. |
Employees |
Country |
Founded |
|
1 |
Amazon |
386.06 |
1,662.00 |
2020 |
1,298,000 |
United States |
1994 |
|
2 |
JD.com |
82.80 |
51.51 |
2019 |
220,000 |
China |
1998 |
|
3 |
Alibaba |
56.15 |
570.95 |
2019 |
101,958 |
China |
1999 |
|
4 |
Suning.com |
38.06 |
13.47 |
2019 |
39,031 |
China |
1990 |
|
5 |
Meituan-Dianping |
13.70 |
50.80 |
2019 |
58,390 |
China |
2010 |
|
6 |
Rakuten |
11.60 |
11.67 |
2019 |
20,053 |
Japan |
1997 |
|
7 |
eBay |
10.80 |
28.74 |
2019 |
13,300 |
United States |
1995 |
|
8 |
Wayfair |
9.13 |
8.50 |
2019 |
16,985 |
United States |
2005 |
|
9 |
Zalando |
7.26 |
12.59 |
2019 |
13,763 |
Germany |
2008 |
|
10 |
Coupang |
6.23 |
2019 |
10,000 |
South Korea |
2010 |
|
|
|
|
|
|
|
|
|
|
Take a look at these Top e-commerce Businesses:
Amazon is without a doubt the most popular e-Commerce platform on the planet. In 1994, the company began as an internet bookseller in Washington.
Thanks to Amazon Inc., Amazon's founder, Jeff Bezos, has become one of the world's wealthiest individuals.
Amazon has grown to become a major corporation in the online retail industry by diversifying its product offering.
In the fields of artificial intelligence, digital streaming, and cloud computing, it offers a wide range of products and services.
The monthly traffic on the site is estimated to be around 2.476 billion visits.
Amazon Prime has been one of Amazon's gold mines.
Customers can subscribe to this delivery service to receive limitless two-day shipping from Amazon.
Streaming, early access to new book releases, and limitless cloud storage are among the additional features that the company has implemented.
Amazon has amassed over 100 million subscribers worldwide as a result of this offering.
Amazon also claims to be the largest employer in the e-Commerce industry.
There are now 1,298,000 workers working for the organization. Furthermore, the firm has the largest revenue in the world.
Amazon's revenues in 2020 were $386.06 billion, up 37.62 percent from $280.52 billion in 2019.
Amazon overtook Walmart as the most valuable retailer on September 4, 2018, when its market capitalization surpassed $1 trillion.
2. JD.com (Jing Dong)
JD.com, on the other hand, is China's counterpart of Amazon.
360Buy was created in 1998, although it only began trading online in 2004.
The company is headquartered in Beijing, and larger e-Commerce companies, including as Alibaba, see it as a danger because of its quick expansion in recent years.
Jing dong differs from Amazon in that the latter uses third-party delivery services to deliver things to its clients.
JD manages all logistics operations in-house, ensuring that practically all orders are delivered the next day.
JD Plus, a competitor to Amazon Prime, was launched in 2016. JD Plus members get free shipping (on average 60 times a year), special discounts, free eBooks, and access to iQiYi Premium.
With over 10 million JD Plus users, iQiYi is China's largest online video platform.
In terms of high-tech delivery, JD.com is the market leader. In remote locations, the corporation deploys drones for autonomous deliveries and a more efficient distribution method.
For a more efficient delivery system, Jing dong is currently aiming to create drone airports and control centres.
Jing Dong has a Market capital of $51.51 billion and generated $82.80 billion in revenue in 2019
3. 3. ALIBABA
Although Alibaba
has a stronghold in China, the world's third-largest market, the e-Commerce
behemoth is constantly expanding to conquer new regions and establish a global
presence.
Alibaba Group
Holding Limited was founded by Jack Ma in 1999.
The company's
headquarters are in Hangzhou, where Jack began his career in the 1990s by
creating websites for local businesses.
Alibaba.com and
1688.com are two of the company's websites nowadays.
Alibaba.com
handles international transactions, whereas 1688 focuses on Chinese commerce.
Alibaba's
ability to cater not only to customers but also to retailers is a big selling
point.
Taobao, Tmall,
and AliExpress are the company's main operations.
Taobao is the
company's main marketplace, and it is responsible for consumer-to-consumer
transactions in China.
Tmall is in
charge of China's B2C market, while AliExpress assists the corporation in
serving its global audience.
Alibaba has
successfully turned the Chinese New Year into a buying binge, generating huge
revenue for the corporation during this time.
Alibaba made
$30.8 billion in 2018, which was a new high for the corporation.
In 2019, Alibaba
had a market capitalization of $570.321 billion and sales of $56.149 billion.
4. 4. SUNING.COM
Suning.com,
based in Nanjing, Jiangsu Province, is one of China's largest non-government
merchants.
Its e-commerce
network and more than 1,600 outlets in China and Japan cover over 700 cities.
In 2019,
Suning.com had a market capitalization of $13.47 billion and revenue of $38.06
billion.
5. 5. RAKUTEN
Rakuten was founded in 1997 and is currently dubbed the "Amazon of Japan."
Rakuten has a
sizable market, with 90 percent of Japanese internet users using the site for
their purchases.
With over 40,000
enterprises spread across the globe, the company has created a global
footprint, not just in Japan.
This e-commerce
company sells products in a variety of categories, including electronics,
household appliances, pet supplies, and healthcare. The platform can be used
for both B2B and B2C transactions.
The organization
is also interested in investing in well-known platforms such as Lyft and
Pinterest.
Rakuten's
ultimate goal is to create a network of services that can meet any of their
customers' needs.
Rakuten promotes
their brand across a variety of segments by doing so.
Rakuten's
revenue in 2019 was $11.6 billion, up 14.7 percent over the previous year's
figure.
Advantages of e-commerce:
Clearly, there are numerous advantages to
doing business online. Let's take a look at a few of the most notable.
1. Convenience
Online commerce allows for
24-hour sales, quick delivery, and easy returns, making transactions easier,
faster, and less time-consuming.
2. Customer experience and personalization
E-commerce
platforms can generate detailed user profiles that allow them to tailor the
things they see and receive recommendations for additional items they might
like. This enhances the customer experience by making customers feel understood
on a personal level, which increases the likelihood of brand loyalty.
3. The global market at your Door
Customers from all over
the world may shop on e-commerce sites, and businesses are no longer limited by
geography or physical obstacles.
4. Reduced expenditures
Digital retailers can build online stores
with low starting and operating costs because brick and mortar is no longer
required.
** Thanks for Reading
**
================
No comments:
Post a Comment