Because eBay is a business, this form of e-commerce could also be called C2B2C - consumer-to-business-to-consumer. EBay and Craigslist are two well-known examples of these platforms. Online auctions and classified advertisements are two examples of C2C platforms. These transactions are generally conducted through a third party that provides an online platform on which the transactions are carried out. It dominates the B2C market.Ĭonsumer-to-consumer (C2C) is a type of e-commerce in which consumers trade products, services and information with each other online. Amazon is the most recognized example of these sites. Today, there are innumerable virtual stores and malls on the internet selling all types of consumer goods. The term was popular during the dot-com boom of the late 1990s, when online retailers and sellers of goods were a novelty. It is when businesses sell products, services or information directly to consumers. B2B sales.īusiness-to-consumer (B2C) is the retail part of e-commerce on the internet. A Forrester report published in 2018 predicted that by 2023, B2B e-commerce will reach $1.8 trillion dollars and account for 17% of U.S. Examples include online directories and product and supply exchange websites that let businesses search for products, services and information and initiate transactions through e-procurement interfaces. The different types of e-commerce are classified by the parties participating in online transactions.īusiness-to-business (B2B) e-commerce refers to the electronic exchange of products, services or information between businesses rather than between businesses and consumers. Platforms that host e-commerce transactions include online marketplaces that sellers sign up for, such as Amazon software as a service ( SaaS) tools that allow customers to "rent" online store infrastructures or open source tools that companies manage using their in-house developers. At this point tangible or digital products may be shipped to a customer, or access to a service may be granted. The order manager will then send order data to the warehouse or fulfillment department, letting it know the product or service can be dispatched to the customer. It will display a message notifying the customer that their order has been successfully processed. This is to make sure that store inventory and customer funds are sufficient for the order to be processed.Īfter the order is validated, the order manager will notify the store's web server. Finally, it will circle back to the order manager. It will then be forwarded to databases that manage inventory levels a merchant system that manages payment information, using applications such as PayPal and a bank computer. Data pertaining to the order will be relayed to a central computer known as the order manager. Customers access an online store to browse through and place orders for products or services via their own devices.Īs the order is placed, the customer's web browser will communicate back and forth with the server hosting the e-commerce website. How does e-commerce work?Į-commerce is powered by the internet. By 2020, with the start of the COVID-19 pandemic, it had risen to over 16% of retail sales. In 2011, e-commerce accounted for 5% of total retail sales, according to the U.S. In the last two decades, widespread use of e-commerce platforms such as Amazon and eBay has contributed to substantial growth in online retail. The term e-tail is also sometimes used in reference to the transactional processes that make up online retail shopping. The terms e-commerce and e-business are often used interchangeably. These business transactions occur either as business-to-business ( B2B), business-to-consumer ( B2C), consumer-to-consumer or consumer-to-business. Ben Lutkevich, Technical Features WriterĮ-commerce (electronic commerce) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet.
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