Analysis of E-Commerce Business 2022

Running head: ANALYSIS OF E-COMMERCE BUSINESS
ANALYSIS OF E-COMMERCE BUSINESS
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ANALYSIS OF E-COMMERCE BUSINESS
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Table of Contents
Introduction:...............................................................................................................................2
Reasons why e-commerce is essential to an organization:........................................................3
Identification of major challenges faced by an organization in implementing e-commerce:....7
Effective e-commerce approach:................................................................................................8
Conclusion:..............................................................................................................................11
References:...............................................................................................................................12

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Introduction:
E-commerce is regarded as one of the most innovative and effective business models that are
considered by the organizations in modern age. In this business model, consumers buy and
sell products or services through electronic mean which include mobile application and
internet as well (Laudon & Traver, 2016). It allows to transfer money and data that is
required for executing transactions. It is important to note that e-commerce include online
retail as well as electronic transaction.
Although the main concept of e-commerce is to allow for online selling and purchasing of
products, depending on the type of consumes, it is classified into Business-to-business (B2B)
e-commerce, Business-to-consumer (B2C), Consumer-to-consumer (C2C), Consumer-to-
business (C2B), Business-to-administration (B2A), and Consumer-to-administration (C2A).
Business-to-business (B2B) e-commerce means the online exchange of products, services or
information between businesses compared to transaction between businesses and consumers.
Business-to-consumer (B2C) means selling of the products, services or information right to
consumers. Consumer-to-consumer (C2C) refers to online transaction of products, services or
information between consumers (Patel, Goyal & Agarwal, 2018). Consumer-to-business
(C2B) refers to an e-commerce model, where products, services or information are purchased
by the business from the consumers that is different from the traditional Business-to-
consumer (B2C) e-commerce model (Kasemsap, 2016). In Business-to-administration (B2A)
transactions are conducted online which involves companies and public administration or
government bodies as well. In Consumer-to-administration (C2A) transactions are executed
online and it involves individual consumers along with public administration or government
bodies as well.

ANALYSIS OF E-COMMERCE BUSINESS
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Reasons why e-commerce is essential to an organization:
E-commerce is one of the most innovative business models in modern age. It refers to the
process where consumers buy and sell products or services through electronic mean which
involve mobile application and internet as well (Laudon & Traver, 2016). It requires transfer
of money and data for executing these transactions. It is important to note that e-commerce
involves online retail as well as electronic transaction.
Although the number of people, according to a report of Entrepreneur, the number of people
who prefers offline shopping compared to shopping through online stores is significantly
larger, but preference for online shopping is increasing as well. E-commerce, especially
mobile e-commerce has provided a growth of 300% within some years with an impressive
revenue of $700 billion in US within a year. It is expected that e-commerce business will
include 17.5% of total global retail sales within 2021 compared to 7.4% in 2015 (Dobreva,
2019). Therefore, it is important for organizations to analyse the importance of e-commerce
and identify how to implement that in business as well.
The reasons why the e-commerce business model is important to an organization are
described in this context:
Global reach to consumers: In e-commerce business consumers require some electronic
devices such as smartphone, tablet, laptop or computer and an internet connection for
shopping online (Patel, Goyal & Agarwal, 2018). Consumers just need to visit the online
store through application or website through their preferred electronic devices. Therefore, it
provides easier access to the online store and consumers do not even need to visit the store in
person and they are allowed to access the store from anywhere anytime. The online store is
accessible to the consumers, no matter from where they are and therefore makes the business