e-commerce

What is the core definition of a business model?

A framework describing how an organization creates, delivers, and captures value.

Which of the following is highlighted in the source as an example of a Business-to-Business (B2B) transaction?

A manufacturer selling products directly to a wholesaler.

Which set of characteristics is typical of B2B transactions?

Larger transaction values, long-term contracts, professional buyers, and bulk purchasing.

Why do B2B transaction processes typically involve negotiated pricing, purchase orders, formal contracts, and credit terms?

To reflect the scale, complexity, and relationship-driven nature of business transactions.

Which company is specifically recognized in the real world as the world's largest B2B marketplace?

Alibaba

What are the major challenges associated with managing a B2B business model?

Longer sales cycles, complex negotiations, and risk from client dependence.

Which e-commerce model is defined by businesses selling directly to individual buyers through digital channels, characterized by fast decisions, high volume, and personalized experiences?

Business-to-Consumer (B2C)

In a Consumer-to-Consumer (C2C) transaction, what role does the platform play?

It acts as a trusted middleman, facilitating discovery, communication, and payment.

Which of the following is a key risk that buyers face in a C2C environment (like Facebook Marketplace or Carousell)?

Fraud, fake products, limited warranties, and no formal seller accountability.

Which of the following Consumer-to-Business (C2B) platforms is specifically noted for organizing crowdsourced design contests?

99designs

What is a marketplace platform?

A platform where multiple independent sellers offer products under one roof, earning revenue through fees rather than owning inventory.

What are the key benefits of managing an Online Store instead of using a third-party marketplace?

Full branding control, ownership of customer data, and flexible experience design.

According to the sources, how do many startups balance the trade-offs between marketplaces and online stores as they scale?

They begin on a marketplace for instant traffic, then migrate to their own online store as they scale.

Under which revenue model do platforms like Shopee, Lazada, Airbnb, and Grab operate when they take a percentage cut of each facilitated transaction with no inventory risk?

Commission Revenue Model

Which of the following pairs is highlighted as an example of the Freemium model, where core services are free, but advanced features require paid upgrades?

Zoom and Canva

Electronic Commerce

The buying, selling, transferring, or exchanging of products, services, and information through electronic networks primarily the Internet.

Customers

Individuals or organizations purchasing products or services.

Sellers

Businesses or individuals offering products online.

Online Platform

Website, mobile app, or marketplace where transactions occur.

Payment System

Processes financial transactions electronically.

Logistics

Handles storage, transportation, and delivery.

Electronic Data Interchange (EDI)

Enabled electronic document exchange.

Electronic Funds Transfer (EFT)

Enabled electronic fund exchange.

Mobile Commerce (M-Commerce)

Refers to buying and selling goods and services through mobile devices.

Social Commerce

Means selling products directly through social media platforms.

B2C

Business → Consumer.

B2B

Business → Business.

C2C

Consumer → Consumer.

C2B

Consumer → Business.

Market Expansion

Businesses can serve customers beyond geographic boundaries, reaching global audiences without physical presence.

Lower Operating Costs

Reduced expenses for physical stores, utilities, and staffing compared to traditional retail.

Scalability

Digital platforms allow businesses to grow quickly without proportional increases in overhead.

Convenience

Shop anytime, anywhere — no store hours, no travel, no lines.

Wider Selection

Access products from local and international sellers in a single session.

Price Transparency

Compare prices across multiple sellers before making a purchase decision.

Customer Reviews

Learn from other buyers’ real experiences before committing to a purchase.

Economic Growth

E-commerce encourages entrepreneurship and innovation at every scale, from solo founders to enterprises.

Employment

Creates jobs in logistics, digital marketing, customer service, and software development.

Financial Inclusion

Provides access to digital financial services for underserved communities worldwide.

Digital Transformation

Integrates technology into every aspect of business operations, reshaping how companies operate, compete, and deliver value to customers.

Online Stores

Sell directly to consumers 24/7 without geographic constraints.

Subscription Services

Generate predictable recurring revenue through membership models.

Affiliate Marketing

Earn commissions by promoting third-party products to your audience.

Digital Products

Sell e-books, courses, and software with near-zero marginal cost.

Customer Relationship Management (CRM)

Systems turn raw customer data into actionable insights, enabling businesses to build deeper, more meaningful relationships at scale.

Buying Behavior

Track purchase patterns and preferences over time.

Personalize Recommendations

Deliver tailored product suggestions that increase conversion.

Brand Loyalty

Improve satisfaction and turn customers into brand advocates.

Competitive Advantage

E-commerce levels the playing field and gives agile businesses a decisive edge over traditional competitors.

Data-Driven Decisions

Use behavioral analytics to stay ahead of customer expectations.

Sales Data

Revenue, conversion rates, and order trends.

Customer Behavior

Browsing patterns, cart abandonment, and retention.

Product Performance

Best sellers, returns, and margin analysis.

Market Trends

Seasonal demand and competitor benchmarking.

Better Forecasting

Predict demand with greater accuracy.

Smarter Inventory

Reduce overstock and stockouts.

Targeted Marketing

Allocate spend where it drives the most ROI.

Technical Issues

Website downtime during peak traffic and slow loading speeds driving customers away.

Security Issues

Data breaches exposing customer information, online fraud and payment scams.

Operational Issues

Inventory shortages during high-demand periods and delivery delays damaging customer trust.

Phishing

Fake emails designed to steal credentials and payment data.

Identity Theft

Stolen personal information used for fraudulent transactions.

Malware

Malicious software that compromises systems and data.

Fake Online Stores

Counterfeit sites that deceive customers and damage brand reputation.

Shipping Delays

Supply chain disruptions and carrier bottlenecks frustrate customers and increase returns.

Damaged Products

Poor packaging and rough handling lead to costly returns and negative reviews.

High Delivery Costs

Rising fuel prices and last-mile complexity squeeze margins for businesses of all sizes.

Last-Mile Delivery

The final leg of delivery is the most expensive and hardest to optimize.

Platform Growth

Shopee, Lazada, and TikTok Shop dominate, with millions of active buyers and sellers.

Digital Payments

GCash and Maya have made cashless transactions mainstream across urban and rural areas.

MSME Adoption

Micro, small, and medium enterprises are rapidly moving online to reach new customers.

Government Support

Digitalization programs, e-commerce training, and startup initiatives are accelerating growth.