E Commerce: Combining the Best of the Web and Telecommunication Technology for Trade

E-commerce uses mobile applications and the internet to connect buyers and sellers. Its uses online payment technology with secure transactions, retail stores on sites and an online marketplace.

Types of E-commerce Models

A B2B model of E-commerce is a platform that works directly with other businesses. Usually, traditional wholesalers, service providers, supply companies, hosting companies and software companies will use this type of customized model. A B2C model is a common type of e-commerce market that exists. Here, a business sells retail to individuals online without the need for a physical store. It offers a lot more information to the consumer along with quick processing and fast delivery.

With the growth in popularity of e-commerce, more and more online sites are now allowing customers to trade online with the C2C model. Apart from allowing buying and selling, the sites also offer innovative payment solutions. C2B is another new type of online business, where a consumer or a single proprietor sells goods and services to a larger business. Crowdsourcing projects, media, designing, and photography use this type of practice.

For this type business model to be successful a thorough understanding of practices and payment modes used in e-commerce is essential. C2A is used with regard to taxes, health, and education between the public administration and individuals. The government usually relies on efficient technology and quick online communication as an e-commerce solution provider.

Types of Online Payment

For any commercial transaction conducted through the web, different payment options can be chosen depending on the function, location and target audience. Credit cards are a popular method of paying online after making a purchase. Once the credit card information has been provided, it is relayed through the web to the concerned payment service provider who will then complete the transaction process. Some payment processors accept e-checks from customers. Here the customer provides details of her checking account number and the routing number in order to get the processor to deposit funds into a particular account.

A common payment method used by minors or those individuals who do not possess a bank account is Prepaid cards. They are available in different values and are usually used by online gaming companies. Sometimes customers schedule a payment from their bank account to complete an online mobile payment. This method is used for payment of online classes, expensive purchases or subscription type services. Cash on delivery or fiat is usually made for physical purchases and comes with its own share of risks.

Unlike an online electronic payment, there is no guarantee of an actual sale taking place or any way to prevent theft. E-wallets require the details of the customer to be entered just once for a purchase. It stores both data and funds and is a very quick and easy mode of payment.

E-commerce combines internet technology with telecommunications to engage and persuade the customer to buy and sell goods and services online.