Marketing illustration Marketing theory

The impact of e-commerce on business activity

Selling through websites is the fastest growing method of trading worldwide. There are two main forms of e-commerce:

  • Business to business (B2B) trading where companies trade and exchange information using the World Wide Web.
  • Business to consumer (B2C) trading where companies deal directly with customers through web pages, and ordering is carried out online.

There are many different types of products and services that are traded on line including books, CDs, cars, holidays, and insurance.

In response to e-tailing and e-trading, most businesses have now set up their own websites.

Trading online

Trading online enables businesses to reach much wider audiences while cutting the costs of traditional retailing methods. For example, an e-tailer does not have to spend so much on an expensive High Street presence.

Although the outlay on developing a good website is substantial the potential benefits can be enormous. One group of businesses that have been particularly successful as a result of the development of the web are specialist suppliers of items such as paintings, photographs, confectionery, and other items. An individual working from home can now advertise and sell their produce worldwide.



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