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Intro

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18 views3 pages

Intro

Uploaded by

Huy Dũng
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Introduction to E-commerce

Definition of E-commerce
E-commerce, or electronic commerce, is buying and selling goods and services over the
Internet. It represents the digitalization of commerce, where businesses and consumers
engage in online transactions through websites, mobile apps, and other digital platforms.
E-commerce eliminates the need for physical presence, allowing global trade and making
products and services accessible to people worldwide with just a few clicks.

Other Definitions of E-commerce


At its core, e-commerce refers to any transaction of products, services, or information
conducted over a digital network. However, the term can be broken down into various
business models:

- Basic Definition: E-commerce involves online transactions where businesses or


consumers exchange goods, services, or information using the Internet as a medium.
- Business Models: E-commerce operates through different business models such as:
- B2B (Business-to-Business): Companies selling to other companies, often in bulk or
specialized products.
- B2C (Business-to-Consumer): Businesses selling directly to individual consumers,
typically retail websites like Amazon or Shopee.
- C2C (Consumer-to-Consumer): Individuals selling goods or services to others, often
through platforms like eBay or Etsy.
- C2B (Consumer-to-Business): Consumers selling products or offering services to
businesses, such as influencers promoting brands or freelance workers providing services
on platforms like Upwork.

Types of E-commerce
E-commerce transactions can be categorized into several types, each catering to different
market segments:

- Retail: This is the most common form of e-commerce, involving the direct sale of
goods and services to consumers. Online retail shops like Amazon and Shopee allow
consumers to browse products, make purchases, and get them delivered to their doorstep.
- Wholesale: In this type of e-commerce, businesses sell products in bulk to other
companies, who then resell them to consumers. Wholesale platforms may operate
between manufacturers and retailers.
- Dropshipping: A popular business model where retailers sell products without holding
inventory. Instead, they rely on suppliers to fulfill orders directly to the customer.
- Platforms: E-commerce is conducted on multiple platforms such as dedicated websites,
mobile applications, social media channels, and online marketplaces. Prominent e-
commerce marketplaces include Amazon, Shopee, and Tiki.
Importance in the Global Economy
E-commerce plays a crucial role in driving economic growth and innovation, becoming a
key pillar of the global economy. Its significance is evident in various aspects:

- Economic Growth: E-commerce contributes significantly to the global economy by


boosting productivity, increasing trade efficiency, and expanding business operations. It
is a growing sector that injects vitality into economies, especially in developing nations
where online retail provides access to untapped markets.
- Expansion of Market Reach for Businesses: Through online platforms, businesses
can access a global audience, which is impossible through traditional brick-and-mortar
stores. Small and medium enterprises (SMEs) particularly benefit from the ability to
reach international customers, broadening their customer base.
- Job Creation: The growth of e-commerce has led to significant job creation across
various sectors:
- Direct Jobs: The e-commerce industry creates jobs in technology (software
development, digital marketing, data analysis), logistics (warehousing, delivery), and
customer service.
- Global Trade: E-commerce enables cross-border transactions, facilitating global trade.
Through international online markets, small and medium enterprises can enter global
markets and compete with larger corporations.
- Innovation and Technology Advancement: E-commerce produces innovation by
driving the development of new technologies like mobile payments, artificial intelligence,
and blockchain. It has also influenced traditional retail businesses to adopt digital
payment systems and online customer engagement practices.

Importance in Daily Life

The impact of e-commerce extends beyond the economy, it affects daily life by offering
convenience, variety, and cost efficiency:

- Convenience: E-commerce provides unparalleled convenience by enabling consumers


to shop from anywhere at any time. Whether it’s late-night shopping or placing an order
during a work break, consumers enjoy 24/7 availability without having to visit a physical
store.
- Reduced Need for Physical Travel: Online shopping minimizes the need for physical
travel, saving time and effort. Whether it's groceries, clothing, or electronics, consumers
can order from the comfort of their homes and have items delivered to their doorstep.
- Variety and Personalization: The internet opens access to a vast array of products and
services. E-commerce platforms allow customers to browse goods from different regions,
offering products they might not find locally. Many platforms also personalize the
shopping experience by providing recommendations based on past purchases and
preferences.
- Cost Efficiency: E-commerce typically offers more competitive prices than traditional
retail because online sellers save on overhead costs like rent and utilities. Customers
benefit from the opportunity to compare prices, find deals, and take advantage of
discounts and promotions.
- Enhanced Customer Experience: E-commerce platforms prioritize user-friendly
interfaces and smooth transaction processes. Efficient payment systems, such as mobile
wallets or one-click checkouts, make purchasing hassle-free. Additionally, customer
support and feedback mechanisms have improved significantly, enabling buyers to
resolve issues quickly and effectively.

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