Ecommerce

Electronic commerce, or eCommerce, is the buying and selling of goods and services over electronic systems, primarily the Internet. It includes online retail, electronic marketplaces, B2B and B2C transactions, as well as related activities such as online banking, payment processing, and supply chain management.

Core models: business-to-consumer (B2C), business-to-business (B2B), consumer-to-consumer (C2C), and consumer-to-business (C2B). Marketplaces and storefronts are common formats, with marketplaces aggregating sellers and storefronts operated by brands selling directly to customers. Subscriptions and dropshipping are complementary approaches.

Key components: product catalog and search, shopping cart and checkout, payment processing, order fulfillment, and customer service. Logistics, warehousing, shipping, and returns are integral to the experience. Payment methods include credit and debit cards, digital wallets, bank transfers, and mobile payments.

Security and regulation: eCommerce relies on encryption, secure payment gateways, and compliance with standards such as PCI DSS. Businesses must manage fraud risk, data privacy, and consumer protection, and cross-border sales raise additional regulatory considerations.

Benefits and challenges: Benefits include convenience, broader product selection, potential price competition, and global reach. Challenges include cybersecurity risk, logistics complexity, returns handling, and the need for reliable digital infrastructure and user trust.

Trends shaping eCommerce include mobile shopping, social commerce, voice commerce, AI-driven recommendations, personalization, omnichannel strategies, and improvements in fulfillment automation and last-mile logistics.