When it comes to ecommerce, a word that first comes to mind is growth.
Ecommerce expert Gary Hoover’s research shows that just in the last 14 years, the growth of ecommerce companies has skyrocketed across the board.
And some merchandise lines (like clothing and beauty products in particular) have achieved a remarkable 25% average CGR between 2000-2014.
This trend isn’t slowing down, either.
In fact, growth projections estimate that by 2022, ecommerce revenues will exceed $638 billion in the U.S. alone.
Globally, ecommerce growth projections are also on an upward trajectory:
They show that retail sales may exceed $4.058 trillion by as soon as 2020.
Even more data reinforces the ecommerce growth trend:
- There may be as many as 2.14 billion digital buyers worldwide by 2021 (eMarketer)
- U.S. ecommerce sales of apparel, footwear, and accessories projected to exceed $123M by 2022 (Statista)
- Shoppers spend 36% of their budget online on average (BigCommerce)
But what’s exciting about this is that there’s still so much opportunity within the online marketplace.
U.S. Department of Commerce data shows that ecommerce sales currently average about 9.1% of total retail sales. That means there are still endless opportunities for brands to launch an ecommerce website and to expand their reach.
When you factor in the expanded ecommerce selling opportunities through omnichannel retail (like adding Amazon and eBay storefronts to your sales approach, for example), it’s easy to see that now is the best possible time to grow an ecommerce business.
It’s Now or Never
There has never been an easier time in history to build a business PERIOD.
The cost of entry is lower than ever before. The ability to access & qualify experts is much easier. The ability to speak directly to your customers and make adjustments has never been easier.
– Eric Carlson, Co-Founder, 10x Factory
What is Ecommerce?
Essentially, ecommerce (or electronic commerce) is the buying and selling of goods (or services) on the internet.
From mobile shopping to online payment encryption and beyond, ecommerce encompasses a wide variety of data, systems, and tools for both online buyers and sellers.
Most businesses with an ecommerce presence use an ecommerce store and/or an ecommerce platform to conduct both online marketing and sales activities and to oversee logistics and fulfillment.
Keep in mind that ecommerce has a few different spelling variations. All of these are synonymous and correct –– their use is largely preference-based.
- e commerce
Types of Ecommerce
Generally, there are six main models of ecommerce that businesses can be categorized into:
Let’s look at each type of electronic commerce in a bit more detail.
1. Business-to-Consumer (B2C).
B2C ecommerce encompasses transactions made between a business and a consumer.
This is one of the most widely used sales models in the ecommerce context. When you buy shoes from an online shoe retailer, it is a business-to-consumer transaction.
2. Business-to-Business (B2B).
Unlike B2C, B2B ecommerce relates to sales made between businesses, such as a manufacturer and a wholesaler or retailer.
This type of ecommerce is not consumer-facing and happens only between business entities.
Most often, business-to-business sales focus on raw materials or products that are repackaged or combined before being sold to customers.
Training the New B2B Buyer
Training your customers to use the new B2B tools is important for adoption.
Changing the way some customers do business with you can be a roadblock or a benefit.
Position the change in a way that makes your customers’ lives easier.
– Andy Etemadi, CEO, EYEMAGINE
3. Consumer-to-Consumer (C2C).
One of the earliest forms of ecommerce is the C2C ecommerce business model.
Customer-to-customer relates to the sale of products or services between, you guessed it: customers.
This would include customer to customer selling relationships like those seen on eBay or Amazon, for example.
4. Consumer-to-Business (C2B).
C2B reverses the traditional ecommerce model (and is what we commonly see in crowdfunding projects).
C2B means Individual consumers make their products or services available for business buyers.
An example of this would be a business model like iStockPhoto, in which stock photos are available online for purchase directly from different photographers.
5. Business-to-Administration (B2A).
This model covers the transactions made between online businesses and administrations.
An example would be the products and services related to legal documents, social security, etc.
6. Consumer-to-Administration (C2A).
Same idea here, but with consumers selling online products or services to an administration.
C2A might include things like online consulting for education, online tax preparation, etc.
Both B2A and C2A are focused on increased efficiency within the government via the support of information technology.
History of Ecommerce
The history of ecommerce dates back further than you might think.
It was initially introduced about 40 years ago in its earliest form.
Since then, electronic commerce has helped countless businesses grow with the help of new technologies, improvements in internet connectivity, and widespread consumer and business adoption.
One of the first ecommerce transactions was made back in 1982, and today, it is growing by as much as 23% year-over-year.