E-Commerce is the buying and selling of foods and services, or the transmitting of funds or data over an electronic network, primarily through the Internet. This business transaction occurred either as business to business, business to consumer, consumer to business, or consumer to consumer.

This is conducted using a variety of applications such as e-mail, online catalogs, shopping carts, web services, etc. Nowadays, most companies try to attract consumers by using social media marketing. Also, they use digital coupons. Today, almost anything can be purchased through e-commerce. Alibaba, Amazon, Walmart, eBay can identify as some of the top e-commerce companies.

We can identify four types of e-commerce models and those are the most traditional types of e-commerce models.

Business to business(B2B) conducts all the electronic transactions of goods or services between companies. Like a manufacturer and wholesaler or wholesaler and a retailer. Inhere, usually involves raw materials, software, or products that are combined. Manufacturers also sell directly to retailers by using the B2B e-commerce model.

When talking about the business-to-consumer (B2C) e-commerce model, it is the most popular e-commerce model. This relationship takes place between the business and the end consumer. This relationship is more easier and dynamic. They are more virtual. Examples are books, clothes, fancy items, etc.

The consumer-to-business (C2B) model is the complete reversal of the traditional sense of exchanging goods. This happens when individuals sell their services or products to a business. Such as photographers, consultants, freelance writers and etc.

Consumers to consumer(C2C) model refers to the sale of a good or service to another consumer. Generally, these transactions are conducted through a third party, which provides the online platform where the transactions are actually carried out.

E-commerce offers more advantages to the business and consumers. As the main advantage, we can identify the ability to reach a global market without necessarily implying a large financial investment. Not only small businesses but also big companies benefit from it. This method is more convenient because it has a clock availability. Customers can get 24-hour service from them. E-commerce directly interacts with customers. It allows suppliers to be closer to their customers. It gives the speed of access. Also, it offers wider availability of goods and services.

E-commerce method has lack of verification measure. Here, the credibility of the customer is questionable. When it comes to the cash on delivery, the business is unsure about whether the customer is genuine or not. This is a major challenge. Also, when product return due to customer unsatisfied, it scared the business with heavy loss on shipment and reputation. Customer loyalty is also a big challenge when it comes to e-commerce sites. For that businesses need to maintain high-quality customer service. Customer trust is also important. They should maintain identify verification with accurate information about them.