What is E-Commerce

E-commerce is the online buying and selling of products and services, relying on a complex
infrastructure that extends beyond just buyers and sellers. It has enabled businesses,
particularly small and local ones, to reach wider markets by offering cost-effective and
efficient sales and distribution channels. While some businesses operate entirely online,
others, like Target, blend physical and digital presence by offering online stores alongside
their brick-and-mortar locations. Individual sellers also engage in e-commerce through
personal websites, and digital marketplaces like eBay and Etsy provide platforms where
multiple buyers and sellers can conduct business..
Advantages and Disadvantages of E-commerce
Advantages
E-commerce offers buyers and sellers a number of advantages:
 Convenience: E-commerce can happen 24 hours a day, seven days a week.
Consumers can buy at their convenience, and business owners can make sales while
they sleep.
 Increased selection: Many stores offer a wider array of products online than they
could ever carry in their brick-and-mortar counterparts. And many stores that solely
exist online offer consumers exclusive inventory that is unavailable elsewhere.
 Potentially lower start-up costs: E-commerce companies may require a warehouse
or manufacturing site, but they usually don't need a physical storefront. The cost to
operate digitally is often less expensive than needing to pay rent, insurance, building
maintenance, and property taxes.
 International sales: As long as an e-commerce store can find a way to ship its
products to its customers, it can sell to anyone in the world and isn't limited by
physical geography.
 Opportunity to collect valuable data: Willingly or unknowingly, consumers share a
lot of information on their interests and shopping habits when they buy or even just
browse online. Site owners can monetize this data in a number of ways, using it
themselves and selling it to others.
Disadvantages
There are also some drawbacks that come with e-commerce. Those can include:
 Limited customer service: If you shop online for a computer, you cannot simply ask
an employee to demonstrate a particular model's features in person. And although
some websites let you chat online with a staff member, that is not a typical practice. A
disadvantage for shoppers, this can also be a money-saver for retailers.
 Lack of instant gratification: When you buy an item online, you must wait for it to
be shipped to your home or office. However, e-tailers like Amazon now make the
waiting game a little bit less painful by offering same-day delivery as a premium
option for select products.
 Inability to touch products: Online images do not necessarily convey the whole
story about an item, and e-commerce purchases can be disappointing when the items
 don't live up to the buyer's expectations. Case in point: an item of clothing may be
made from shoddier fabric than its online image indicates.
 Dependence on technology: If a website crashes or must be temporarily taken down
for any reason, the business is effectively closed until things return to normal.
 Greater competition: Although the low cost of starting an e-commerce business can
be an advantage, it also means means competitors can just as easily enter the market.
Types of E-commerce
E-commerce companies can operate using several different business models.
Business-to-Consumer (B2C)
B2C e-commerce companies sell directly to the product's end-user instead of distributing
goods through an intermediary such as another retailer.
This type of business model may be used to sell products (like your local sporting goods
store's website) or services (such as a lawn care mobile app to reserve landscaping services).
This is the most common business model and the concept most people likely think about
when they hear the term e-commerce.
Business-to-Business (B2B)
Similar to B2C, an e-commerce business can sell goods to another company. B2B
transactions often entail larger quantities, more detailed specifications, and longer lead times.
The buyer can also arrange for recurring orders if the purchase is for ongoing manufacturing
processes.
Consumer-to-Consumer (C2C)
Individuals can sell things to other individuals on their individual websites or through e-
commerce platforms that facilitate the process. Examples of the latter include Craigslist,
eBay, Etsy, and many others.
Consumer-to-Business (C2B)
Some platforms allow individuals to more easily engage with companies and offer their
services, especially related to short-term contracts, gigs, or freelance opportunities. Upwork
is one example.

S.No
. E-COMMERCE E-BUSINESS

E-Commerce refers to the

performing online commercial
activities, transactions over E-Business refers to performing all type of
01. internet. business activities through internet.

02. E-Commerce is a narrow E-Business is a broad concept and it is

concept and it is considered as
 a subset of E-Business. considered as a superset of E-Commerce.

Commercial transactions are Business transactions are carried out in e-

03. carried out in e-commerce. business.

In e-commerce transactions are

04. limited. In e-business transactions are not limited.

It includes activities like procurement of

It includes activities like raw materials/goods, customer education,
buying and selling product, supply activities buying and selling product,
making monetary transactions making monetary transactions etc over
05. etc over internet. internet.

It requires the use of multiple websites,

It usually requires the use of CRMs, ERPs that connect different
06. only a website. business processes.

It involves mandatory use of It involves the use of internet, intranet or

07. internet. extranet.

E-commerce is more
appropriate in Business to E-business is more appropriate in Business
08. Customer (B2C) context. to Business (B2B) context.

E-Commerce covers
outward/external business E-Business covers internal as well as
09. process. external business process/activities.

Digital marketing, also known as online marketing, is the practice of promoting brands,
products, or services through digital channels and technologies. This approach leverages the
internet and various digital platforms to connect with potential customers, enhance brand
visibility, and drive business growth. Businesses often engage in digital marketing
services or hire a digital marketing agency to optimize their online presence.
Types of Digital Marketing
Digital marketing encompasses a wide range of strategies and techniques aimed at
promoting products or services through digital channels. Here are the key types of digital
marketing:
1. Search Engine Optimization (SEO)
SEO involves optimizing a website to improve its visibility in search engine results pages
(SERPs). The goal is to attract organic traffic by using relevant keywords, improving site
structure, and earning backlinks. Effective SEO can enhance online visibility and drive long-
term traffic.
2. Content Marketing
Content marketing focuses on creating and distributing valuable, relevant content to attract
and engage a target audience. This includes blog posts, articles, videos, infographics, and
eBooks. The objective is to provide useful information that encourages customer loyalty and
drives conversions.
3. Social Media Marketing
Social media marketing involves using platforms like Facebook, Instagram, Twitter,
LinkedIn, and TikTok to promote products and engage with customers. This type of
marketing can include organic content, paid advertising, and influencer partnerships to reach
a broader audience and build brand awareness.
4. Pay-Per-Click (PPC) Advertising
PPC advertising is a model where advertisers pay a fee each time their ad is clicked.
Common platforms for PPC include Google Ads, Bing Ads, and social media ads
(e.g., Facebook Ads). PPC allows businesses to reach potential customers quickly and
control their advertising spend.
5. Email Marketing
Email marketing involves sending targeted emails to a subscriber list to promote products,
share news, or provide valuable content. Effective email marketing campaigns can nurture
leads, retain customers, and drive sales. Tools like Mailchimp and Constant Contact are
popular for managing email campaigns.
6. Affiliate Marketing
Affiliate marketing is a performance-based strategy where businesses reward affiliates
(partners) for driving traffic or sales through their referral links. Affiliates use their platforms,
such as blogs or social media, to promote the business’s products. Amazon Associates is a
well-known affiliate program.
Digital Goods
Digital goods are products or services that can only be purchased, transferred, and delivered
online. As a result, they lack physical presence and are thus intangible. These products'
primary purpose is to meet the needs and desires of consumers who are increasingly looking
for convenience and accessibility in their daily lives.
What is digital transformation?
Digital transformation is the process of integrating digital technologies into all parts of an
organization, such as products, services, or operations, to deliver value to customers. In a
globally and digitally connected landscape, this type of transformation is more than keeping
up with the rest of the world and your industry—it’s about continuing to innovate and seek
new, better ways of doing things.
Digital transformation in health care
As mentioned above, the shift from paper-based patient records to EHR has made monitoring
health concerns easier for patients and providers. Online portals also help make virtual
doctor’s visits more accessible in recent years. For example, the company Doxy.me created a
free web-based system designed for telehealth. Clinicians can create an account and offer a
personalized waiting room to communicate with patients. Patients can click a link to “wait”
in the room until the clinician is ready. This service provides an easily accessible, secure, and
safe virtual platform for telehealth.
Digital transformation in entertainment services
Netflix started out as a DVD distributor and then pivoted into a streaming service. It was a
bold (but smart) move. Blockbuster stores were dying out, and people were spending more
and more time online. Later on, competitors like Hulu, Disney+, HBO Max, and Amazon
Prime would enter the market for a slice of the streaming service pie.
Digital transformation in finance
Financial services have undergone a significant transformation in recent years, enabling
several forms of mobile banking. Consider the transformation from cash to credit cards and
automated teller machines (ATMs). Or, think about how touch-free payments such as Apple
Pay and CashApp have proliferated. Another notable example is Wise (formerly
Transferwise). This company created a borderless banking application that allows businesses
and individuals to send and receive money in multiple currencies.
Difference Between Digital Marketing and Traditional Marketing

Aspect Digital Marketing Traditional Marketing

Marketing through digital platforms, Marketing using offline channels

Definition such as websites, social media, and like TV, radio, newspapers, and
email. billboards.

Offline platforms: print media,

Online platforms: social media, search
Medium broadcast media, and physical
engines, email, and websites.
advertisements.

Target Highly targeted using tools like Broad audience, less specific
Audience demographics, interests, and behavior. targeting.

Cost-effective; options for all budgets Often expensive (e.g., TV ads,

Cost
(e.g., pay-per-click ads). large-scale print campaigns).

Global reach; accessible to anyone with Limited to geographical locations

Reach
internet access. of the media being used.

Two-way interaction; allows direct One-way communication; no

Interaction engagement with customers (e.g., immediate interaction with the
comments, messages). audience.

Limited analytics; results measured

Real-time analytics tools (e.g., Google
Analytics through sales, surveys, or indirect
Analytics) to measure performance.
metrics.
Aspect Digital Marketing Traditional Marketing

Campaigns can be quickly adjusted Difficult to modify once a

Adaptability
based on performance metrics. campaign is launched.

Social media ads, email campaigns, TV commercials, radio jingles,

Examples
influencer marketing, SEO, PPC. newspaper ads, flyers, billboards.

High engagement potential through

Limited engagement; relies on
Engagement interactive content like polls, videos,
viewer interest in the content.
and quizzes.

Highly personalized; tailored ads based Generic messaging, less

Personalization
on user preferences and behavior. customization.

Instant delivery; ads can be launched Slower; requires planning and

Speed
quickly. production time.

Paper-based materials and physical

Environmentally friendly; minimal
Sustainability ads contribute to environmental
physical waste.
waste.

Requires internet and devices; may Accessible to all, regardless of

Accessibility
exclude some demographics. internet connectivity.

Example Scenarios
1. Digital Marketing:
o A small business runs Facebook ads targeting women aged 25-40 interested in
fitness, directing them to an e-commerce site.
o A company uses email marketing to inform customers about a new product
launch.
2. Traditional Marketing:
o A local bakery places an ad in a regional newspaper to attract customers.
o A brand launches a TV commercial during prime time to reach a broad
audience.