- E-commerce or e-commerce is an entrepreneurial activity, which, in one way or another, is associated with the distribution,
advertising, promotion, sale of services or goods over the Internet.
To simplify, any activities with a commercial bent in the global network fall under the definition of online commerce.
This sphere originated in the United States, then developed in Europe and in the late 1990s began to actively develop in China and Russia.
- E-commerce combines such global categories as online sales, online banking, ticket and hotel reservations,
payment system transactions, online marketing and advertising.
- In technical terms, e-commerce on the Internet stands on three pillars –
the server, the database and the system for delivering goods or services to the customer.
The first pillar – a quality and fast server – is critical.
The database is needed for large objects, and the delivery of electronic goods or services does not require complicated logistics.
- Types of E-commerce on the Internet
The field of E-commerce is divided into types depending on the target audience with which the company works:
- The Business-to-Business niche implies commercial relationships between legal entities, economic subjects of the market.
That is, companies, manufacturers interact with each other – conclude deals, partnership contracts for the supply, sale, purchase of goods or services.
Specialized Internet sites, interactive databases are used in B2B sphere to establish contacts, find partners and negotiate.
Business-to-Consumer” implies trade in goods and services between legal entities and individuals.
This is a kind of retail sales, but only with the help of online venues – stores, services, banks, and so on.
Customers have the advantage of a greater range of choices, and the convenience of ordering and delivering goods to their home or office.
E-commerce allows the entrepreneur to reduce the cost of maintaining sales and warehouse space.