The importance of electronic commerce, its types, disadvantages, advantages, and the most important electronic commercial sites
The importance of electronic commerce and what are the benefits of electronic commerce, There is no doubt that electronic commerce is similar to normal commerce with a different nature of work in it. These activities are practiced via the Internet, where the consumer tries to obtain a specific commodity and sends its request to the orders manager with specifying the payment mechanism and thus delivering it in the appropriate ways between the two parties. In the end, both Both parties benefit from it. We learn about the importance of electronic commerce and its most prominent benefits in this article.
What is electronic commerce
A commercial activity that carries out its activities of buying and selling goods and services via the Internet. Its concept has evolved in the current era to include forms of retail sale. It is not limited to selling to individuals, but also to companies of all sizes and classifications. We mention examples of the most important e-commerce products and services available on electronic stores and platforms:
- Where online sales of physical goods.
- Also digital services.
- In addition to ticket sales
- He also paid utility bills.
- Instead of electronic banking services
- Availability of online markets.
See also: The most important types of e-commerce to achieve a high source of income
What is the importance of electronic commerce
There are many options for consumers with the development of trade and its openness to the widest extent, and the consumer can access goods and services that are more diversified, of better quality and at a lower price through the stores available via the Internet. This falls within the importance of electronic commerce, which we mention as follows:
- E-commerce is an innovative way to transfer traditional trade to a widely known brand.
- Therefore, e-commerce depends primarily on providing services and products around the clock.
- With the importance of showing interaction with customers on various social media.
- It also allows electronic commerce to reach a wide range of audiences.
- And thus its prosperity and expansion, without worrying about warehouse costs, number of employees and other logistical problems.
More suitable for customer conditions
- The online store opens its doors all the time without closing it, unlike the traditional store, which opens its doors only at specific hours.
- Therefore, it allows customers to visit the store at any time convenient for them, and thus feel comfortable with the experience of electronic stores and search for what suits them without any significant difficulties with knowing prices, as well as offers and discounts.
Expansion of target groups
- Without being restricted to a specific geographical location or location, e-commerce is available to millions of people.
- With the removal of barriers to payment methods, delivery and shipping globally.
- Which works to expand trade and increase the audience at a speed that exceeds the expected numbers compared to costly traditional trade in all aspects.
Collecting data with the aim of improving services
- Data is a fundamental pillar for the growth of the company’s services.
- Especially after identifying the desires, needs and purchasing requirements of customers.
- This database can be relied upon to improve products and provide the most requested and focus on them.
Reducing costs in return for increasing profits
- This appears clearly in the event of obtaining a subscription to one of the special electronic platforms, and obtaining an online store in return for paying a low cost.
- On the contrary, traditional trade requires high costs for warehouses and storage procedures, transportation vehicles, in addition to a large number of employees.
- The loss to traditional trade is many and severe, and it results in the accumulation of debts and the closure of facilities.
- On the contrary, electronic commerce would avoid all these risks.
Add privacy to the shopping process
- The consumer can view all the products without feeling embarrassed about buying any product.
- Feeling comfortable while shopping without being forced to buy or try a product.
- Clarity of prices without any discussion and argument with the seller, with a list of offers and discounts.
See also: The Saudi International Exhibition for Electronic Marketing and Electronic Commerce SIDMC 2023
What are the types of electronic commerce?
The concept of electronic commerce has expanded and is no longer confined to individuals, but the government has sought to include its services within the e-commerce dictionary in order to facilitate and facilitate citizens in conducting transactions. We explain this within an explanation of what are the types of electronic commerce:
- Its role is limited to transactions for goods or services that take place between companies.
- Dealing with this type of trade is between producers of goods and wholesalers.
E-commerce from business to consumer B2C
- Transactions take place between businesses and final consumers.
- This e-commerce includes various consumer goods such as electronic and digital devices, clothes and shoes, as well as foodstuffs.
C2C electronic commerce between consumers
- A third party is included in that equation, as it is able to provide an electronic platform for conducting transactions between consumers.
- The system is established to complete transactions of goods and services between consumers.
E-commerce from consumer to business C2B
- Individuals play a big role in offering products and services for sale to companies that need such services.
- Among the most important of these services that companies need are graphic designers who display various distinctive designs for major companies.
- The company chooses its striking design and purchases it, as well as buying photos and videos.
E-commerce from business to management B2A
- It includes services for social security, or tax services, as well as contains legal records and much more.
- This term and its services have also spread in the recent period, especially with large investments.
E-commerce from consumer to management C2A
- Related to the use of related services between government, citizens and businesses.
- The information and communication technology sector also includes the promotion and support of this type in many aspects.
- For example, the education sector, social security, as well as the provision of taxes and payments, instead of the most important sector, which is health, around raising awareness of diseases and paying health care costs.
See also: Electronic Commerce Law | The most important laws of online business to make a profit
Disadvantages of electronic commerce
I found electronic commerce in order to obtain huge profits, as well as to facilitate the conduct of buying and selling procedures without the need to spend effort and time, and despite that, the matter is not without the negatives that customers complained about, especially if the product matches the one offered on the store, as well as we mention the most important Disadvantages of e-commerce:
- Hacking accounts due to negligence and withdrawing cash, the necessary measures must be taken from the website to protect the website and customer data.
- The inability to test the product, and the fear that customers have due to the difference in the standard for the appropriate size, or the desire to serve a certain commodity, and the product is completely different from what is offered.
- Late delivery where the recipient has to wait many hours before receiving.
- In addition to the presence of government oversight and follow-up, and internet laws are not effective in a way that increases confidence in commercial websites.
- Also, problems are faced with shipping operations, and in the event of any error, it causes huge losses.
Types of e-commerce websites
In a world known for the strength of the commercial economy, the trend has become towards establishing sites estimated at thousands, perhaps millions, and numbers of customers estimated at billions, instead of huge profits, as it is a golden opportunity for beginners to exploit that power and establish their own store. We learn about the most important types of electronic commercial sites:
- Where there are websites for selling products: through which the seller through the online store displays the products without the presence of any intermediary.
- Also a website for selling services: Services are sold, such as training courses.
- As well as websites for selling digital products: able to meet and offer e-books, graphics, photos and other such things.
- Also websites for wholesale: displaying products in large numbers at special prices for companies and individuals.
The importance of electronic commerce and what are the benefits of electronic commerce. All institutions take the practice of their activities on electronic platforms, some of which are my services, and some that are based on providing goods and products in an attempt to shorten the ways for the customer to obtain his services comfortably.