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E-COMMERCE IN SMALL BUSINESSES AND E-COMMERCE MODELS

This assignment discusses e-commerce in small businesses and e-commerce models; E-commerce business strategies are important for businesses of all sizes. This is because most consumers have access to multiple platforms for shopping. E-commerce in small businesses can be beneficial in increasing the customer base, and consequently, result in increased profits. Small businesses are also available in different locations where they can attract a diverse range of customers using a single e-commerce business model. However, the limitations of e-commerce pose a challenge for the growth and development of small businesses. Effective planning for e-commerce in small businesses helps them keep pace with competitors and other business trends.
e-commerce in small businesses and e-commerce models

TYPES OF E-COMMERCE MODELS IN BUSINESS

There are various types of e-commerce models based on the interaction between two trading parties. Examples are B2B (Business to Business), B2C (Business to Consumer), and C2C (Consumer To Consumer). B2B models focus on the provision of products and services from one business to another. B2C e-commerce in small businesses is the most apparent in many places. It is what most people imagine when they think of e-commerce. They are a representation of traditional retail models, except shopping occurs online. We can find most of the limitations of e-commerce in this model. Other models of e-commerce include C2B (Consumer to Business) and B2G (Business to Government).
 types of e-commerce models in the business

LIMITATIONS OF E-COMMERCE TO SMALL BUSINESSES

The limitations of e-commerce involve issues of security, privacy, taxes, product suitability, and other cultural issues. Security is the biggest drawback of e-commerce. This is because of people’s fears regarding their personal and financial information. Many people are reluctant to share this information due to fears of cybercrime and identity theft. This is especially a major problem for e-commerce in small businesses. Many small businesses have e-commerce websites without high encryption for secure online transactions and to protect online identities. This discourages many people from engaging in e-commerce. Small businesses must invest in effective e-commerce models that ensure customer satisfaction with issues of privacy. The computation of sales tax also poses a problem where customers and sellers are in different states.
 limitations of e-commerce to small businesses

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