E-commerce is developing extremely strongly in the Vietnamese market, demonstrating the development of information technology and the digital economy. So, what is the essential meaning of e-commerce? Is it sustainable? ECOMCX will help you clarify in the following article.

1. What is E-commerce?

E-commerce is a commercial activity carried out through electronic means such as: Computers, phones, laptops... All transaction activities are conducted via the internet and electronic information systems for storage.

E-commerce is first and foremost a commercial activity, generating profit from production to consumption. It is not merely the buying and selling or exchange of goods, but also includes activities such as: Advertising, marketing, offering, ordering, contract signing, distribution, delivery, payment.... A chain of actions to achieve the success of commercial activities.

The subject of commerce is not only goods but also services, capital, finance...

It fully converges the constituent characteristics of traditional commerce such as: Information, goods, payment, but e-commerce differs in that all elements are carried out based on electronic means.

For example, thanks to the internet, businesses can reach customers through various platforms and applications such as: Social networks, e-commerce marketplaces, sales websites without needing direct meetings.

Product information and marketing, advertising activities to consumers are also disseminated based on social media platforms and applications such as: Facebook, Instagram, Youtube,..- which have become an integral part and one of the daily entertainment habits of people today.

Regarding payment methods, e-commerce no longer requires consumers to pay in cash like traditional commerce, but instead uses electronic payments such as: Credit cards, e-banking, e-wallets,...

E-commerce does not require all three flows: Information, goods, currency to be carried out through electronic means. Only at least 1 to 2 related elements are considered e-commerce activities.

For example: Offering, ordering, signing contracts, or making payments can be done online through electronic means, but delivery is still carried out entirely according to traditional commerce because goods are mostly tangible.

There are many different understandings of e-commerce activities currently put forth by reputable global organizations; however, all concepts refer to the mode of operation of e-commerce as commercial activities through electronic means.

However, nowadays with the development and widespread use of the internet, e-commerce is often understood as commercial activities based on internet transactions. That is why the term 'thương mại điện tử' in English is also called E-commerce, where E stands for the symbol of the internet.

2. Classification of E-commerce

Based on different electronic means, we can classify e-commerce as follows: Commercial activities using electronic means with internet connection, e-commerce activities with mobile telecommunication network connection, e-commerce activities with connection to other open networks.

With the development of social media platforms and information technology applications, e-commerce activities are established in the following forms:

- E-commerce website: Also known as a business's sales website

- E-commerce marketplace: Functions like an online market, connecting sellers and buyers with specific policies regulated to ensure user rights.

- Online promotion website: A website that gathers promotional products from various businesses, organizations, and individuals for sale based on the terms of promotional service contracts.

- Online auction website: A website that provides solutions for merchants, individuals, and organizations to auction their goods.

The classification of e-commerce activities as above aims to help users identify participating entities and the responsibilities of the units establishing commercial relationships on these platforms, ensuring the credibility and legality of e-commerce activities, and preventing distortion and exploitation of the internet and e-commerce for profit by some fraudulent individuals and organizations.

With the above information on the nature of e-commerce, we hope ECOMCX helps you better understand e-commerce today. E-commerce has become an inevitable trend and can completely break through strongly and sustainably in the future as life becomes increasingly modern.