What are the six types of e-commerce? According to the dictionary: E-Commerce – a process of conducting business transactions electronically over the internet. Internet – the world wide web including intranets and extranets, which includes information technology systems, computer networks, and wireless technologies. Physical merchandise – anything produced by physical, human effort and includes manufacturing, construction, mining, agriculture, architecture, transportation, communications, and tourism.
Six Degrees. In the early days of e-commerce, there were no real categories, and it was considered more of an art-form than a science. Today, there are six degrees recognized for the industry, with the head honcho at the Institute for the Study of Communication Marketing being one of only two individuals with the title of “SOC”. In terms of actual science, the six disciplines of study include social, behavioral, psychological, technological, economic, and business management.
Six Types of E-Commerce. In today’s world of e-commerce, the product or service offered in each case is distinct. There are six types of e-commerce: electronic commerce, online commerce, affiliate marketing, auction sales, direct sales, and personal product sales. Let’s look at each one of these six categories to better understand how they work.
Electronic Commerce. This type of e-commerce occurs when a consumer conducts his/her transaction with a company that sells the goods or services via the internet. For example, if a person buys a digital camera from an online retailer, the camera is purchased via the internet.
Online Commerce. Online electronic commerce is conducted on a website rather than on a physical location. Some examples of this are shopping carts that are available on many popular shopping sites, check out systems that allow a business owner to offer a catalog of available products, and interactive shopping portals where the consumer can select an item and pay for it online by inserting the credit card number for payment. Check out systems allow a business owner to provide products that have been “priced” through a third party that will deduct sales tax.
Affiliate Marketing. This type of marketing is the process by which an independent party, often a merchant, pays another party, known as an affiliate, for each customer or client brought about by the affiliate’s marketing efforts. This type of business is often a passive income source for both parties. For example, a merchant may place banners or other promotional material on the site of an affiliate, and the affiliate, in return, will place links or ads on the merchant’s site, and the merchant will pay the affiliate a commission for any items sold. Affiliate marketing programs can be very profitable; however, they are dependent upon getting enough visitors to the site to make the product sales.