With the explosive development of technology, digital and the constant innovation and elimination of the world economy. E-Commerce is no longer the commodity trading platform of the future, they have been developing continuously every day, every hour. In order not to fall behind, businesses need to transform themselves to integrate into the wave of the times. So how to integrate? That is to understand the basic knowledge of E-Commerce and their commercial models. From there, apply and choose the right model for your own business.

1. What is Ecommerce?

E-Commerce is an abbreviation for Electronic Commerce or also known as electronic commerce related to the use of the Internet, World Wide Web (Web), mobile applications and browsers running on mobile devices to conduct business transactions.

In which, the Internet is a network of computer networks worldwide and the Web is one of the most popular services on the Internet, providing access to billions of websites. An application is a software application. The term is often used when referring to mobile applications, but it is also sometimes used to refer to desktop applications. A mobile browser is a version of web browser software that is accessed through a mobile device.

Alternatively, e-commerce can be defined as digitally enabled commercial transactions between organizations and individuals. Digitally enabled transactions include all transactions that are mediated by digital technology. This largely means transactions that take place over the Internet, the Web, and/or via mobile devices. Commercial transactions involve the exchange of value (e.g., money) across organizational or personal boundaries in exchange for products and services. Without the exchange of value, no commerce occurs.

2. Classification of E-commerce Models

2.1. D2C - Direct to Customers

Direct to Customers (D2C) is a business model in which businesses sell their own products directly to end consumers through the company's official website.

Key features of the D2C model:

Direct sales: Businesses produce and sell directly to consumers through online channels such as websites, social networks or mobile applications.

Control the entire process: Businesses have complete control over the process from production, marketing, sales to customer service. This helps optimize costs and improve service quality.

Customer data: The D2C model allows businesses to collect customer data directly, thereby analyzing and better understanding customers' needs, behaviors and shopping trends.

Cost optimization: By eliminating intermediaries, costs are reduced and products can be offered at more competitive prices.

Benefits of the D2C model:

Increased customer interaction: Businesses can interact directly with customers, thereby building strong relationships and increasing loyalty.

Increased profits: By eliminating intermediaries, businesses retain most of their profits and reduce costs.

Brand control: Businesses control the entire marketing and sales process, thereby building and maintaining a consistent brand image.

Quick response: Businesses can quickly receive feedback from customers and adjust products or services accordingly.

Challenges of the D2C model:

High marketing costs: To reach and attract customers, businesses need to invest heavily in online marketing campaigns.

Logistics management: Warehouse management, transportation and after-sales service require investment and tight organization.

Fierce Competition: Competition in the e-commerce sector is fierce, requiring businesses to constantly improve and innovate.

For example: Some official commercial websites of businesses such as Apple, Chanel...

2.2. E-Retailer

E-Retailer (online retailer) is a business or individual that sells products or services via the Internet. The difference from the D2C model is that they are not the manufacturer of those products and services. E-Retailers take advantage of e-commerce platforms to reach customers, allowing them to shop conveniently from anywhere, anytime.

Key features of the E-Retailer model

Product diversity: E-Retailers often provide a wide range of products from many different industries such as fashion, electronics, home appliances, food, and many other fields.

Convenience: Customers can view, compare and buy products conveniently without having to go to a physical store.

Benefits of the E-Retailer model

Low operating costs: No need to maintain a physical store, helping to reduce operating costs such as renting space, store maintenance, and staff.

Convenience for customers: Customers can shop anytime, from anywhere, saving time and effort.

Customer data: E-Retailers can collect and analyze customer shopping data to optimize marketing strategies and personalize the experience