SIZ Education | E-commerce and its business models

Learning outcomes

1. What is e-commerce?
2. Why e-commerce?
3. Types of the business models used in e-commerce.
4. Most successful e-commerce platforms.

1. What is e-commerce?

E-commerce is a combination of two words E and commence. E means electronic and commerce means business. E-commerce refers to the sales and purchase of products or services using the web, and therefore the transfer of cash and data to execute these transactions.

Image Source:melchers-china

2. Why e-commerce?

1. Convenience of easy service
2. Wide range of variety to choose
3. Eliminates time and cost
4. Provide Comparison
5. Locate Products quickly

Through E-commerce it becomes easy to find items of one's own choice. E-commerce eliminates the Physical effort of traveling. E-commerce reduces the process of personnel dealing and supplies with customers.

3. Types of the business models used in e-commerce

There are five types of e-commerce models

1.Business to Business ( B 2 B ):

The business between manufacturer and wholesaler or wholesaler to the retailer is called Business to Business Model. For Example Alibaba. Business to Business (B2B) mostly involves software raw materials or products that are combined. In B2B, the manufacturer also merchandises their product directly to the retailer.

2. Business to Consumer( B 2 C ):

B2C is the most widely used e-commerce model. In B2C model, sales between business to an individual take place. For example Amazon and Daraz. Amazon is one of the biggest e-commerce websites working on this model. In Pakistan, Daraz is also working on this model.

3.Consumer to Business( C 2 B ):

When a consumer sells goods or services to an organization. For example, C2B encompasses influencers offering exposure, consultants and freelance writers, etc

4.Consumer To Consumer( C 2 C ):

The business takes place from individual to individual. For Example OLX, eBay, fivver, etc. All these are based on this model.

5. Direct To consumer. ( D 2 C ):

D2C is relatively new to other business models. In Direct To consumer (D2C) model brand sell their goods directly to customers instead of using wholesalers, distributors, and retailers. In D2C Subscriptions are the most popular. For example Facebook, Pinterest, etc

Top four e-commerce platforms:

1. Amazon

Amazon is one of the biggest e-commerce platforms in the world and due to amazon's revenue, amazon lies in the top five platforms. People like Amazon due to its customer-friendly interface, offers and discounts, and reliable shipping. Amazon works on the B2C model. Amazon recently allows Pakistani sellers to sell on this platform. Now Pakistani sellers sell their product on amazon

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2. Walmart

Walmart is an amazing e-commerce website in America. Walmart demands in America due to its reliable shipping, coupon discount offers. Walmart also lies in the top five e-commerce platforms in the world.

Image Source: Screenshort from Walmart Store

3. eBay

eBay is also a popular e-commerce platform. On the eBay platform, any person can sell and buy their product. eBay also lies in the top five eCommerce platforms of the world. Pakistani sellers also sell their products on eBay.

Image Source:Pixabay

4. Shopify

Shopify is also an e-commerce platform to sell products. It is a popular e-commerce platform nowadays. Pakistani sellers can sell products on Shopify also. Shopify is just like the woo-commerce website. This e-commerce platform also lies in the top five platforms of the world.

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