Also known as electronic commerce, it is the process of buying and selling products and services online. 

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Conducted by individuals and companies, Ecommerce can be classified into four main types:

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1. Business to business (B2B): when the online transactions don’t involve the final consumer, but companies that are doing business;
2. Business to consumer (B2C): when the company sells products or services directly to the final consumer;
3. Consumer to consumer (C2C): when no company is involved in the transaction, only consumers who decide to sell to each other – this usually takes place on third-party websites such as eBay and OLX;
4. Consumer to manufacturing (C2M): when the consumer influences and determines the production, allowing the manufacturer to react to the demand;
5. Direct to consumer (D2C): when the producer or manufacturer sells their products directly to consumers.

In 2020, over two billion people purchased goods or services online, and during the same year, e-retail sales surpassed 4.2 trillion U.S. dollars worldwide.

Source: Statista (2022)

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Exhibit - Retail e-commerce sales worldwide from 2014 to 2025 (in billion U.S. dollars)

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Ecommerce is responsible for changing the way people relate to the products and services they buy and consume. Currently, technological systems have facilitated the processes and transactions for ordering goods, which can be easily delivered to their homes. Despite the risks and possible difficulties, Ecommerce brings many benefits to those who interact with it, whether companies or consumers.

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EICOM Institute also recommends that you check our Commerce Chats to learn more about Ecommerce basics, Ecommerce automation and Ecommerce growth and profitability.

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