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E-Commerce
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Description:
Electronic commerce or e-commerce consists of the exchange of goods and services using electronic equipment (computer, mobile phone or other) over the Internet or other computer networks.
In the perfect model, all transactions will be established electronically.
This model works especially well when it is a business extension, that is, when another store or distribution point is opened, not at another physical location, but rather in cyberspace.
The main difference is that we are suddenly available around the world for all users with access to the Internet.
The business must be adapted to the specific characteristics of the product or service being provided, taking into account some critical points, such as:
Distance, means and delivery time
Export and import laws
Customs and transportation costs, amongst others.
There are two basic electronic commerce models:
B2C - Business to Consumer – many customers, few products per customer.
B2B - Business to Business – few customers, many products per customer.
Ex: A stationery store has thousands of customers and each customer buys a pen, an eraser or a magazine.
The supplier works with dozens of stationery stores; however, it sells many pens, rubbers and magazines to each.
There are other variations of electronic commerce, but they are all based on these two main models.
Some examples of this are:
C2C - Consumer to Consumer - typically used in auction sites, such as e-bay. Here the two consumers exchange products. Obviously the seller behaves like a company that may only have one sample of a single product.
B2E -Business to Employee - exactly the same as B2C. However, the consumer is employed at the organization, and may thus have some advantages. This type of business normally occurs at mid-sized and large companies.
E2E - Employee to Employee - equivalent to a mix of the above two, where the exchange of products or services is carried out by colleagues from the same company.
E2B - Employee to Business - a very rare model that consists of an employee proposing a service/product and doing business with the company.
G2C – Government to Citizen, G2B - Government to Business, an increasingly more common model used by governments to disclose deadlines, fees and tax charges to citizens and companies.
Finally, we have other forms of e-commerce, which may change names, but that maintain their essence:
M - Commerce: - business over mobile phones
T - Commerce: - using a television for commercial transactions
V - Commerce: - using voice commands for commercial transactions
P - Commerce: - “Proximity commerce” using technologies such as Bluetooth or infrared.
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