What is Online Shop, Marketplace and E-commerce

What is the difference between an online store and an offline store? Most of you are familiar with these two types of shops. As you know, nowadays online shopping is more popular with buyers because it is considered more practical and easier.

When shopping online, you may also come across various items not found in offline stores. If you shop online a lot, of course online shop, marketplace and E-commerce are common terms that are often heard. Then what exactly is the difference between the three? To find out, make sure to listen to the reviews below first.

What is an Online Shop

According to Wikipedia , Online Shop or online shopping is the activity of purchasing goods and services via the Internet. Through shopping via the Internet, a buyer can preview the goods and services that he wants to spend on the web promoted by the seller.

This online shopping activity is a new form of communication that does not require direct face-to-face communication, but can be done separately from and to the rest of the world through notebooks, computers, or mobile phones connected to Internet access services.

Online shopping is a form of electronic commerce that is used for seller-to-seller or seller-to-consumer transaction activities.

Online shops in Indonesia are increasingly showing significant developments. Online shopping is not only monopolized by shopping for goods, but also services such as banking which introduce e-banking techniques. Through the e-banking technique, customers can carry out activities such as transferring money, paying bills for electricity, water, telephone, Internet, purchasing credit, paying tuition fees and so on.

Online shopping in Indonesia for the purchase of an item has developed quite rapidly. Starting from sites that sell cellphones, guitars, boutiques, bookstores, food, even to electronic devices, online shopping services have begun to be explored.

1. The media used for online shops

One of the media that displays online shopping, among others, is a blog. Blog is a free web service where the online business manager uses the blog as an online shop that he has to sell and promote the goods and services he offers to potential customers.

Because it is easy to customize by users, online shopping through blogs is quite risky because buyers find it quite difficult to know the reputation of the seller. Usually the seller uploads proof of transfer that he has as a form of guarantee to the customer that he is a trusted seller.

The second medium is the Website . There are many websites that provide online shopping services both local and international websites. Usually there is a shopping cart, where potential buyers can choose the products to buy.

Apart from shopping carts, buyers can also directly contact the seller so that direct transactions can be made by phone or email. There are many things that can be done in online shopping services through the web, one of which is a popular auction.

Auction is an online shopping activity in which the buyer sets a lower limit for a price to be auctioned, then the interested buyer can bid (commonly known as bidding) according to the multiples proposed.

The auction is usually limited to a certain period so that the buyer with the highest nominal value is declared to have the right to buy the goods he wants at the price he proposed.

The third media is Social Networking Sites . Along with the rapid growth of social networking sites in the world, this social networking media is also being attracted by online shoppers to market their products.

The seller will upload the items he offers and then distribute them via messaging or photo sharing features. The form of this offer is a development from the catalog media which was previously distributed in the form of printed media per month, now it is distributed through the online catalog media whose offers can be updated anytime.

2. How to Shop at Online Stores

Online shopping can be done by doing window shopping online on the intended web. Then, the buyer can click on the desired item. After that the buyer is then taken to a window that displays the agreed payment procedure and then after the nominal money has been transferred, the seller will send the goods by postal service.

Today, online shopping procedures can be done more easily. When a buyer is interested in the intended item, he can simply make a phone call with the seller or type an SMS according to the rules. After the message is received, the buyer is usually required to transfer a sum of money to the seller’s account and the goods purchased will be sent either by courier (if the delivery area is still close enough) or by postal service.

Payments can be made either using a debit card, credit card, PayPal, cutting customer credit (for transactions via HP), checks, or COD (Cash On Delivery), which is a payment made when the goods have been sent by the seller. Cash On Delivery is usually done face-to-face between the seller and the buyer; the seller can show his goods so that interested buyers can research the goods he is going to buy.

Purchases of this kind usually make payments in person / cash. In addition to face-to-face contact between the seller and the buyer, COD can be done between the courier and the buyer; usually the seller will only serve COD if the buyer’s area is still accessible to the seller.

3. Advantages and Disadvantages of Online Shopping

Some of the advantages of shopping online or online include:

  1. Buyers do not need to visit a place of sale, be it a shop, boutique, mall, and so on. Buyers simply click on the intended web and select the desired item.
  2. Selection of goods can be made from home or office so that purchases can be made for hours without having to leave the house.
  3. Sellers can reduce shop opening costs because through online shopping, sellers only need to market their products through the Internet.
  4. Product marketing can reach the rest of the world at low cost.
  5. Buyers can quickly compare the price of the product they want to buy to find the cheapest price

Some of the weaknesses of this online shopping system include:

  1. The quality of the desired item is sometimes different from the quality listed on the website.
  2. Vulnerable to fraud in many cases when the buyer has sent an agreed amount of money, the goods purchased are not sent.
  3. Vulnerable to be damaged or broken because the delivery medium is the post.
  4. Vulnerable to account breaches because payments are made via the Internet.
  5. Spamming is rampant because after the buyer registers, the seller tends to always send an online catalog via the buyer’s email and this is quite disturbing the privacy of each buyer and seller.

what is online shop marketplace and e commerce

What is E-Commerce and Marketplace

According to Webopedia , electronic commerce or often referred to simply as e-commerce (or e-commerce), this phrase is used to describe a business conducted over the Internet using an application such as e-mail, instant messaging, shopping carts, Web services, blogs, social media. Electronic commerce can occur between two businesses transmitting funds, goods, services and or data or between a business and customers.

According to Wikipedia, electronic commerce is the distribution, purchase, sale, marketing of goods and services through electronic systems such as the internet or television, www, or other computer networks. E-commerce can involve electronic fund transfers, electronic data exchange, automated inventory management systems, and automated data collection systems.

The information technology industry sees e-commerce activities as the application and application of e-business related to commercial transactions, such as: electronic fund transfers, SCM (supply chain management), electronic marketing (e-marketing), or online marketing (online marketing), online transaction processing, electronic data exchange (EDI), etc.

E-commerce is a part of e-business, where the scope of e-business is broader, not only for commerce but also for collaboration with business partners, customer service, job vacancies etc. In addition to www network technology, e-commerce also requires database or database technology (databases), electronic mail (e-mail), and other forms of non-computer technology such as goods delivery systems, and payment instruments for this e-commerce.

1. History and Development of E-Commerce

E-commerce was first introduced in 1994 when the electronic banner was first used for promotional purposes and advertising on a web page (website). According to Forrester Research, electronic commerce generated sales of US $ 12.2 billion in 2003.According to another report in October 2006, non-travel online retail revenue in the United States is forecast to reach a quarter trillion US dollars in 2011.

The term “electronic commerce” has changed over time. Originally, electronic commerce meant the use of commercial transactions, such as using EDI to send commercial documents such as purchase orders or invoices electronically.

Then it developed into an activity that is more accurately termed “web commerce” – the purchase of goods and services via the World Wide Web via a secure server (HTTPS), a special server protocol that uses encryption to keep important customer data confidential.

At first, when the web became popular in society in 1994, many journalists predicted that e-commerce would become a new economic sector. However, it wasn’t until about four years later that secure protocols like HTTPS were mature and widely used. Between 1998 and 2000 many businesses in the US and Europe developed this trading website.

2. E-Commerce Model in Indonesia

Based on wikipedia, there are 3 models of electronic commerce in Indonesia, including:

  1. Classified advertising, which is a relatively simple form of e-commerce, can be considered as an evolution from classified ads that are usually found in newspapers into the online world. Sellers who use social media or forums to advertise usually cannot immediately complete transactions on the website in question. However, the seller and the buyer must communicate directly in order to transact. Examples of classifieds: OLX.co.id (formerly Tokobagus), Berniaga, and FJB-Kaskus.
  2. Retail, is a type of e-commerce in which all buying and selling processes are carried out through a system that has been implemented by the relevant retail site. Therefore, buying and selling activities at retail is relatively safe, but usually there are not too many product choices available, or only focus on one or two product categories. Examples of retail: Berrybenzka, Zalora, and Lazada.
  3. Marketplace, can be considered as an online mall service provider, but those who sell are not website providers, but members who register to sell on the relevant marketplace website. Marketplace generally provides an additional layer of security for every transaction that occurs, such as an escrow payment system or more commonly known as a joint account. So every time a transaction occurs in the marketplace system, the marketplace party will become a third party that receives payment and keeps it until the product has been sent by the seller and received by the buyer. After the delivery process is complete, then the payment money is forwarded to the seller.

Source : Apa itu Online Shop, Marketplace dan E-commerce