What is e-commerce?

What is e-commerce?

by Christian Bagnimbo on 19/11/2021

Updated at 4/10/2022


Many businesses are turning more and more to the internet to sell their products. E-commerce is a sector in full and strong growth. Online sales are attracting more and more people and are becoming almost mandatory for all companies doing business to step up for e-commerce website development.

Most of e-commerce website development is handled by an experienced and professional online e-commerce marketing agency. The web marketing agency increases the visibility of the site and focuses on the discipline of getting more conversions. This helps the businesses compete with a huge number of competitors across the globe.

In this article, we will show you everything there is to know about e-commerce.

E-commerce, what is it?

According to Wikipedia, online commerce, or e-commerce, is the monetary exchange of goods, services, or information through computer networks, especially the Internet. 

In simple terms, e-commerce represents the various commercial transactions that take place on the Internet. The purchase is made through different machines such as computers, smartphones, tablets, consoles, and televisions.

Different forms of e-commerce

E-commerce is a very broad term. There are several models of e-commerce. Have a look at these e-commerce models.

  • B2C e-commerce (Business-to-Consumer):
    This is the best-known form. Here the company sells directly its products or services to the final consumers. 
  • B2B e-commerce (Business-to-Business): 
    In this model, sales are made between two companies. It is the case of a manufacturer who supplies his products to a wholesaler or reseller.
  • C2C e-commerce (Consumer-to-Consumer): Here, it is the agreement in the relation between two consumers. This model can be observed on certain sites like eBay.
  • C2B e-commerce (Consumer-to-Business): In this form, the consumer offers his products or services to companies. 

These four models are the most common and best known. However, there are several other types such as:

  • G2C (Government-to-Consumer) and C2G (Consumer-to-Government): Exchanges between the government and individuals
  • B2E (Business-to-Employee): Exchanges between a company and its employees.
  • And others...
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What are the advantages of e-commerce?

If e-commerce is booming, it is because it has many advantages. Here are some of them:

  • Increase in number of customers:

    With your online store, you are visible everywhere in the world. You can sell your products anywhere in the world. This possibility allows you to considerably increase your customers because you reach people from several countries.
  • Accessible at any time:

    Unlike physical stores, which have limited opening hours and are not accessible 24 hours a day, the online store has no hours.

The website remains open and accessible to the public all day long and the customer can therefore make his purchases at any time.

  • Reduction of the operating costs:

    The cost of production can be reduced with online stores. It lifts the burden on rent and capital spent on physical shops. If the e-commerce works by putting in contact suppliers with buyers, there will not even be production costs (case of drop shipping).

    • More profits:

      The reduction of the costs and the increase of the number of customers allows reaching a bigger margin than with traditional trade, even by lowering the prices. We sell more and we earn more money.
  • Scalability: 

E-commerce online stores can sell to one or a thousand people at once unlike a physical store where you have a limit to serving customers.. With e-commerce, your only limit is your product inventory. However, like anything else, e-commerce has disadvantages and challenges.

Disadvantages and challenges of e-commerce

  • Limited customer interaction:

    Since all interactions are done online, it can be more difficult to understand your customers' needs and concerns. While there are still ways to gather their concerns (survey data, customer service interactions, etc.), it requires more work than talking to buyers in person. However, once the data is gathered, it can be used in various ways.
  • Lack of customer trust: 

Despite all the advances in terms of the security of online financial transactions, many people still do not fully trust online transactions. This lack of trust is even greater when your site is new.

  • No possibility to touch, test, or try the product:

Buyers like to touch physical products to be sure they are making a good purchase.

How to overcome this disadvantage?

Show on your website the products:

  1. Complete product sheets, including images, videos, product images, 
  2. A very detailed product description
  3. Show live 3d pictures with virtual reality technology.
  • Technical difficulties: 


E-commerce requires a minimum of technological knowledge, which not everyone has. If the e-commerce site is slow, down or unavailable, it means that no sales will be possible. Site dysfunction and technology failures can damage customer relationships and negatively impact the financial results and brand awareness of the company. The best way to solve this problem is to delegate the maintenance of your site to an e-commerce website development agency.

  • Time to get results: 

    Increasing visibility for an online business is more difficult than it seems. Indeed, you can have a very good product and be presented on a good platform, but you have to work on your SEO to gain visibility.

Want to create an e-commerce website?

If you have read our article so far, it's probably because you are interested in e-commerce stores. If you have decided to create one after reading this article then looks no further. Oshara is the e-commerce website development agency that can help you create the right online store for you.

We at Oshara know: how to structure your contentand increase revenues. Contact Montreal E-commerce agency for consultation of return on investment in ecommerce business.

Choose our e-commerce service and get a custom made e-commerce website.



Christian Bagnimbo

Christian is a project manager and SEO specialist for Oshara. A true geek and digital lover, he loves to share his passion for digital marketing, technology and everything that goes with it.

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