If you want to start a business, to sell products online then you will be joining the millions of entrepreneurs who have fixed out a niche in the world of e-commerce.
E-commerce is referred to as purchase and sale of goods and/or services through electronic channels such as the Internet.E-commerce was first introduced in the 1960s via an Electronic Data Interchange (EDI) on Value Added Networks (VANs). The medium grew with the increased availability of Internet access and the advent of popular online sellers in the 1990s and early 2000s. Amazon began operating as a book shipping business in Jeff Bezos garage in 1995. EBay, which allows consumers to sell to each other online, introduced online auctions in 1995 and exploded with the 1997 Beanie Babies frenzy.
As mobile devices became more popular, mobile commerce has become its own market. With the rise of sites like Facebook and Pinterest, social media has become an important driver of e-commerce. As of 2014, Facebook drove 85% of social media originating sales on e-commerce platform Shopify, according to Paymill.
According to Statista, worldwide e-commerce sales reached $1.2 trillion, and U.S. mobile sales reached $38 billion in 2013. More than 40% approximately 1 billion of web users have purchased goods online.
Categories of E-commerce
In traditional commerce, there are 4 main categories of e-commerce such as B2B, B2C, C2B and C2C.
1. B2B (Business to Business): This involves companies doing business with each other. For example, manufacturers selling to distributors.
2. B2C (Business to Consumer): In B2C ecommerce, businesses selling to the general public through shopping cart software, without needing any human interaction. For example, Amazon.
3. C2B (Consumer to Business): C2B consists of consumers post a project with a set budget online, and companies bid on the project. For example, Elance.
4. C2C (Consumer to Consumer): C2C takes place within online classified ads, forums or marketplaces where individuals can buy and sell their goods. For example, Craigslist, eBay and Etsy.
The Federal Trade Commission (FTC) regulates most e-commerce activities, including the use of commercial emails, online advertising and consumer privacy. Businesses collect and retain sensitive personal information about their customers, and your company is subject to federal and state privacy laws, depending on the type of data that you collect.