Kapanlagi.com - Without us realizing it, the development of technology has brought many influences on people's habits. One example is the habit of shopping online. The development of online trading systems or e-commerce is one of the reasons why people now more often shop online.
It cannot be denied that e-commerce and online shopping systems offer many advantages. Diverse product choices and convenience are some of the reasons why people like to shop online. Not to mention, online stores often offer tempting discounts or promotions.
Although it has become a common thing to do, e-commerce is still a foreign term for some people. However, knowledge about e-commerce can be useful, especially for those of you who want to start an online selling business.
Therefore, here kapanlagi.com has summarized from various sources, reviews about what e-commerce is and its advantages and disadvantages.
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In terms of terminology, e-commerce is an abbreviation for electronic commerce. Therefore, the meaning of e-commerce is a system of buying and selling goods and services, including the transfer of funds or data, carried out through electronic devices. The electronic devices referred to include telephones, computers, televisions, or the most popular one today, the internet.
In addition, e-commerce is now also known by several terms, such as e-niaga, e-tail, and e-business. However, regardless of the term used, the essence of the definition of e-commerce remains the same, which includes all electronic transactions of buying and selling goods and services, especially through the internet.
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In general, e-commerce can also be carried out with several types of patterns, namely business to business (B2B), business to consumer (B2C), consumer to consumer (C2C), consumer to business (C2B), business to administration (B2A), consumer to administration (C2A) depending on the interests and parties involved. For more details, please refer to the following discussion about the types of e-commerce.
1) Business to Business (B2B)
The first type of e-commerce is Business-to-Business (B2B). This type of e-commerce occurs when both parties involved are business entities. Generally, this type of e-commerce is conducted on behalf of a company that sells its products to other companies. Examples of this type of e-commerce are companies that provide equipment to other companies, companies that provide hosting services.
2) Business to Consumer (B2C)
This type of e-commerce places the first party as the business entity, and then places the consumer as the user or consumer of goods or services. In other words, consumers use goods or services for their personal interests and needs.
3) Consumer to Consumer (C2C)
The third type of e-commerce is Consumer to Consumer (C2C). C2C e-commerce generally occurs when the seller is a micro, small, and medium enterprise (MSME) selling their products or services through e-commerce, and then directly desired by consumers. Indonesian startup companies such as Tokopedia, Shopee, Bukalapak, and others are among those that implement this e-commerce pattern.
4) Consumer to Business (C2B)
E-commerce can also be utilized by a consumer to offer goods or services to a company. For example, there are currently many online project auction sites, allowing the general public to participate.
5) Business to Administration (B2A)
The fifth type of e-commerce is conducted with a business-to-administration (B2A) pattern. This e-commerce refers to online transactions between companies and public administration bodies or government agencies. B2A e-commerce has rapidly developed with the presence of e-government.
6) Consumer to Administration (C2A)
The last type of e-commerce is consumer to administration (C2A). This e-commerce transaction is conducted between individual consumers and public administration or government bodies. Governments rarely purchase products or services from citizens, but individuals often use electronic tools, such as tax payment.
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As part of the emergence of e-commerce technology, it certainly brings many benefits. In addition, e-commerce also has advantages over conventional buying and selling transaction systems. Some advantages of e-commerce are as follows.
1) E-commerce provides a wider range of sellers, even on a global scale.
2) E-commerce has substantially reduced transaction costs by eliminating many fixed costs to maintain brick and mortar stores.
3) E-commerce provides fast shipping facilities with little effort on the part of customers. Customer complaints can also be handled quickly. Thus, indirectly, shopping in e-commerce will also save time, energy, and effort for consumers and companies.
4) Another advantage of e-commerce is the convenience it offers. A customer can shop without time constraints. Online stores based on websites can function at any time, without working hours like physical stores.
5) Electronic commerce also allows customers and businesses to communicate and transact directly, without intermediaries. This allows for fast communication and transactions.
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Like two sides of a coin, e-commerce not only brings benefits or advantages. On the other hand, e-commerce also has several shortcomings. Here are some shortcomings of e-commerce.
1) The initial cost to enter the e-commerce portal is relatively high. This cost includes hardware and software setup, employee training costs, and constant maintenance, all of which can be quite expensive.
2) Due to its heavy reliance on technology, the e-commerce industry has a high risk of failure.
3) E-commerce can feel impersonal, thus lacking the important interpersonal relationships that many brands and products rely on. However, this lack of personal touch can be a disadvantage for many types of services and products such as interior design or jewelry businesses.
4) Security issues. Shopping through e-commerce allows for potential security breaches related to customer data theft. Therefore, e-commerce users must be cautious of credit card theft, identity theft, and so on.
Those are some of the reviews regarding e-commerce as online trading of goods and services. Hopefully, it is useful and can expand your knowledge!
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