What is E-commerce?

When the purchase and sale of a product are done through the

Internet, it is known as “e-commerce”.

• It is said that the first e-commerce transaction was made on

11 August 1994.

• A person sold a C.D to his friend on a website called “net

Market” in the U.S.A.

There has been a lot of advancement from 1994 until now.

• A CD was sold that day but today, the whole world is running

With the help of c-commerce.

By the end of 2020, global e-commerce retail will amount to approximately 27 trillion dollars.

Digital adoption is growing very faster in India.

• Many people are using the Jazz Cash app.

All this is e-commerce.

• We will become a digital-driven trillion-dollar economy by 2025.

• According to many reports, by 2022 Internet penetration will reach a level where 60% of Pakistan will be connected through the internet.

By 2027, the middle class of India will overtake the U.S and China.

Today, the middle class is the largest consumer class.

• These are the people who buy products and want to improve their lifestyle.

• For them, it is very important to get connected to the internet.

• They are the consumers who are buying and selling products on portals such as Amazon.

• In the next 3-5 years, India is going to be the largest consumer market of e commerce.

Now, the questions are:

• Are you ready to serve these consumers?

• Are you ready so that your business reaches these consumers?

What are the types of an E-commerce business?

You can adopt any of the following types for your e-commerce


1. B2B (Business to Business):

You are running a small business and selling goods to

large business.

• For example, Alibaba.com is a platform that transacts with

B2B platform.

2. B2C (Business to customer):

• In B2C, businesses sell goods to consumers like Daraz.pk.

• You can directly buy the product on Amazon.

• So, you are a business that is selling the product to

customers through an internet-enabled platform.

3. C2C (Customer to customer):

They are drop shipping platforms or social selling.

4. C2B (Customer to business):

Consumer sells goods/services to the business.

For example:

• You are a freelancer.

• You can provide services to businesses.

• A startup wants you to design their business cards a


Many freelance platforms are available on the Internet today.

You can make your profile and sell your services on these platforms.

What are the types of e-commerce websites?

As e-commerce is internet-enabled, the transaction will take place

through a website or an app.

The following are 9 types of e-commerce websites:

1. Megamall

. In the mega mal, large malls are converted into online apps.

Today, all your departmental stores are available online.

You will find all things on a website or an app.

A large departmental store is available such as Daraz Mall.

2. Marketplace:

There is buying and selling a large number of people.

On Amazon, one person sells while some other person buys the product.

Amazon makes a commission in between.

3. Deal maker websites:

Deal sites are beneficial for both customers and businesses.

Both of them can find deals on the internet.

When a customer gets discounts, chances are high that he

buys the product.

This is a win-win for everyone.

Customers get discount and businesses finds non-consumers that are converted into customers.

Therefore, dealmaker websites convert non-customers into customers.

4. Vertical marketplace:

You will find only one type of product.

For example:

Etumax.pk sells only Royal honey

They have to build a large platform only for one type of product.

5. Auction site:

There is bidding on the auction site.

• Auctions sites are very useful because you find a good deal.

• If you bid at the right time, you will win in the auction.

6. Community buying:

OLX is classified in market places.

• You can place advertisements and the buyer shows his interest in buying your second-hand products.

• In community buying, the community sells products and the community buys the products.

7. The Aggregators:

They are the people who aggregate information or product.

For example:

• In Polocybazaar.com, you can find the insurance policies of Many companies.

8. Facebook commerce:

• Facebook shows you many products when you scroll the Facebook page.

• You can use Facebook commerce to sell your products.

9. The single brand crossover:

• Established brands launch their websites such as luxury watches and cars.

• This is called a “single brand crossover” which means a single brand website with all the information of a single brand.

Why do sellers face losses in an e-commerce business?

1. Cost:

Suppose you are not a manufacturer but you have procured any product for Rs.2.

• You sell this product for Rs.20. You think that you have made profits of 10x.

• It seems like 10 X but there are many hidden costs in e- commerce and you might face loss in this situation.

• This is the reason why many people think e-commerce business is not good because you never know when you face losses.

• So, you should use a calculator on this e-commerce course.

You will never face loss in e-commerce if you understood this calculator.

Do you need special technology training to learn e-commerce?

You should know about the following basic technologies for e-commerce business:

2 CRM:

You should know about customer relationship management.

3 Digital marketing:

You should know about proper presentation and copywriting.

• Also, you should have an understanding of branding.

• You should know the message that should be delivered to attract customers.

4 Google analytics

You should know about Google analytics.

Does e-commerce business requires huge investment?

Many people fear that if they don’t have crores of money in their bank account, they can’t do e-commerce business.

This is not true.

• You should start a small business, remain profitable, and then establish a large e-commerce business.

4. Is e-commerce logistics very tough?

Logistics depends on the scale.

• if you choose the right logistics vendor, you will never be disappointed so I suggest choose TCS

• If your business is small and you choose a large logistics company, there will be losses.

• You should choose a logistics brand depending upon the size and scale of your e-commerce business.

In this blog, you have understood what, why, and how of e- commerce

Now you should move ahead with knowledge and clarity and not fear.

You will keep your first step in the world of e-commerce.

Best of Luck,

Ahmed Bin Haroon