Ecommerce is the short form of Electronic commerce; it means doing trading in products or services using computer networks. E-commerce website development Dubai refers to the purchase and sale of goods or services via electronic channels, such as the Internet. Online trade is suitable due to its 24 hour availability, global reach and ease of customer service.

Electronic commerce has expanded very fast over the past five years and is predicted to continue at this rate, or even more. The boundaries between conventional and eCommerce will become gradually blurred as more and more businesses move sections of their operations onto the Internet. Now it is very easy for consumers to shop around and right product, at right price. When you shop online you can compare the price of any product with different eCommerce websites quickly and easily.

Generally speaking, when we think of e-commerce, we think of an online commercial transaction between a supplier and a client. However, and although this idea is right, we can be more specific and actually divide e-commerce into six major types, all with different characteristics.

There are 6 basic types of e-commerce:

Business-to-Business (B2B) Business-to-Consumer (B2C) Consumer-to-Consumer (C2C) Consumer-to-Business (C2B). Business-to-Administration (B2A) Consumer-to-Administration (C2A)

Business-to-Business (B2B)

B2B refers eCommerce between businesses rather than between a business and a consumer. One example is manufacturers selling to distributors and wholesalers selling to retailers. B2B businesses often deal with hundreds of businesses, either as customers or suppliers. Carrying out these transactions electronically provides vast competitive advantages over traditional methods. Ecommerce is often faster, cheaper and more suitable than the traditional methods of exchanging goods and services.

Business-to-Consumer (B2C)

B2C or business to consumer is type of eCommerce which deals in selling product or services directly to consumer. Selling products to consumers electronically is also known as E-tailing. Almost any product can be e-tailed. The hard part for retailers and manufactures in a B2C online selling environment is to get consumer traffic to their website marketplace.

Consumer-to-Business (C2B)

C2B is the most recent E-Commerce business model. In this model, individual customers offer to sell products and services to companies who are willing to purchase them. This business model is reverse to the business to consumer. C2B is a result of two major changes. Unlike traditional media, which are unidirectional, the Internet is bidirectional, making this type of relationship possible. In addition, the drop in the cost of technology means that consumers now have access to technologies such as powerful computer systems, audio and video capture systems and other digital technologies that were once the exclusive province of large companies.

Consumer-to-Consumer (C2C)

Consumer-to-Consumer (C2C) type e-commerce encompasses all electronic transactions of goods or services conducted between consumers. Generally, these transactions are conducted through a third party, which provides the online platform where the transactions are actually carried out. This business model allow individuals to sell and purchase their goods. In eCommerce UAE we can find lot of examples for the C2C websites such as: Dubizzle and olx etc.

Business-to-Administration (B2A)

This part of e-commerce encompasses all transactions conducted online between companies and public administration. This is an area that involves a large amount and a variety of services, particularly in areas such as fiscal, social security, employment, legal documents and registers, etc. These types of services have increased considerably in recent years with investments made in e-government.

Consumer-to-Administration (C2A)

The Consumer-to-Administration model encompasses all electronic transactions conducted between individuals and public administration.

Examples of applications include:

Education disseminating information, distance learning, etc.

Social Security through the distribution of information, making payments, etc.

Taxes filing tax returns, payments, etc.

Health appointments, information about illnesses, payment of health services, etc.

Both models involving Public Administration (B2A and C2A) are strongly associated to the idea of efficiency and easy usability of the services provided to citizens by the government, with the support of information and communication technologies.

Advantages of E-commerce

The main advantage of e-commerce is its ability to reach a global market, without necessarily implying a large financial investment. The limits of this type of commerce are not defined geographically, which allows consumers to make a global choice, obtain the necessary information and compare offers from all potential suppliers, regardless of their locations.

By allowing direct interaction with the final consumer, e-commerce shortens the product distribution chain, sometimes even eliminating it completely. This way, a direct channel between the producer or service provider and the final user is created, enabling them to offer products and services that suit the individual preferences of the target market.

E-commerce allows suppliers to be closer to their customers, resulting in increased productivity and competitiveness for companies; as a result, the consumer is benefited with an improvement in quality service, resulting in greater proximity, as well as a more efficient pre and post-sales support. With these new forms of electronic commerce, consumers now have virtual stores that are open 24 hours a day.

Cost reduction is another very important advantage normally associated with electronic commerce. The more trivial a particular business process is, the greater the likelihood of its success, resulting in a significant reduction of transaction costs and, of course, of the prices charged to customers.

Disadvantages of E-commerce

The main disadvantages associated with e-commerce are the following:

Strong dependence on information and communication technologies (ICT);

Lack of legislation that adequately regulates the new e-commerce activities, both nationally and internationally;

Market culture is averse to electronic commerce (customers cannot touch or try the products);

The users loss of privacy, the loss of regions and countries cultural and economic identity;

Insecurity in the conduct of online business transactions.

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