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2023-09-24 00:15:16

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Impact of E-Commerce on Business Models and Strategy

The process of buying and selling goods and services through electronic systems, such as the internet, computer networks, etc, is known as e-commerce (electronic commerce). Business to business (B2B), Business to Customer (B2C), Consumer to Consumer (C2C), and Customer to Business (C2B) are some popular business models of e-commerce. E-Commerce is a rapidly growing area of business that has helped both customers and businessmen in the last two decades. Amazon, Flipkart, and Myntra are the most popular platform for e-commerce. With the advent of e-commerce, many business strategies and models have been changed and modified.

How is E-Commerce Different from Traditional Commerce or Business?

Traditional business is one of the oldest forms of business. A business that sells its services and goods to its customers through a store is known as a traditional business. In contrast, e-commerce includes the process of selling and purchasing goods and services through online platforms. Traditional business is considered as expensive as compared to e-commerce. To start a traditional business, one needs to have a shop to sell the goods and services. Whereas Through online platforms, one can easily sell his products without purchasing or renting the shops.

Thus, traditional business is considered an expensive form of business. E-commerce help business owners to sell their products without any time and distance barriers, and when we talk about the traditional form of business, the owners of traditional business need to work according to the government rules and regulations for time, and it becomes difficult for the customers to travel and spent lots of time to buy a product or services according to their need. Therefore, nowadays, customers prefer to shop online, and e-commerce is on the trend.

How E-Commerce Created Impact on Business Models and Strategies?

E-commerce has changed the way of doing business as it has given online platforms to business owners to enhance their businesses. Information communication and technology (ICT) is known as the most effective strategy that helps businesses to grow, but in the past two decades, with the advancement of e-commerce, many business models and strategies have been changed.

In 1991, Malone and Rocket said that technology will help businesses in many different ways as it will reduce the cost of doing a business, it will improve the coordination among business owners and their customers, and will change some business strategies and models to enhance the business profit. Few business strategies and models that have been changed due to e-commerce and the improvement in information and communication technology:

  • Retail E-Commerce- Retailers have created the online versions of their shops and are selling goods through their own online platforms or online platforms like Amazon, Flipkart, etc. Thus, retail stores have converted into e-commerce retail stores. Retail- E-Commerce has shaved the cost of making or renting a store to sell goods and services to the target audience. This business strategy has helped both customers and business owners to come together in a more effective way when compared to traditional retail stores or businesses. Retail E-Commerce has allowed business owners to make their own strategies to make their business survive and grow through online mode.
  • Business to Business (B2B) E-Commerce- There are many advantages that businesses and customers have got with the advancement of e-commerce. Many of them are the same as in Retail E-Commerce. Different business owners can connect easily with each other by creating and meeting through an effective e-commerce channel to grow their business together. New business technologies have helped businesses to collaborate and to improve their supply chain. The advanced technologies of e-commerce have helped businesses to create new relations with customers as well as with other businesses. These changes in organisations have helped to increase the roles and responsibilities of financial and logistic departments. The universal e-commerce connectivity has allowed business firms to form a three-way information partnership with both the suppliers and customers.
  • Business Intermediaries- The capabilities and the advantages of e-commerce are giving birth to new business intermediaries such as aggregators, auctions, and exchanges. These business intermediaries are creating new opportunities-
    • Aggregators are helping the customers to find a one-stop shopping mall to fulfill all their needs or requirements at an affordable and pre-defined price. Online e-commerce platforms are helping both buyers and sellers to connect with each other despite the time and geographical distance.
    • Auctions- They are helping sellers to enhance their profit as there is no mediator involved when a seller directly sells its products and services to the customers through an online platform.
    • Exchanges- Online exchange system is creating a stable trading market and is helping stock exchange and online trading to grow with a clear set of rules.
  • Infomediaries- With time, e-commerce is helping all the business models and strategies to come together, which will result in creating new opportunities for businesses. E-commerce business strategies and models are connecting the buyers and sellers together, which was not possible earlier due to the time and geographic distance. Thus, they can be described as infomediaries.


Profit and loss are the major part of a business, but now, after the advancement of e-commerce and technology, the world has seen many positive changes in business and the economy. By using effective business models and strategies and changing them according to the time and requirements, business owners can give positive growth to their business.

Many students in Australia are trying to enhance their career opportunities and knowledge associated with business models and strategies by pursuing a degree in business management. While pursuing a degree in business management, students are required to write many complex assignments. But, sometimes, due to the short deadlines of assignments and insufficient subject knowledge, it becomes difficult for students to draft their assignments.

Thus, they ask experts to do my assignments for me. There are many Australian assignment help experts that work all round the clock to help students in completing their assignments. It is said that by taking instant assignment help services from experienced assignment experts in Australia, students can deliver their assignments on time and can pass their courses with the best academic grades. 



About Author

Nick is a multi-faceted individual with diverse interests. I love teaching young students through coaching or writing who always gathered praise for a sharp calculative mind. I own a positive outlook towards life and also give motivational speeches for young kids and college students.

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