Different educational institutions, management consulting, and market research companies explain what is digital commerce and its definition in their own unique ways. The same is true with individuals who are leaders in their field and elaborate the definition of digital commerce based on their relevant industry experience. After going through different definitions from different businesses and individuals, one can sum up that digital commerce is the buying and selling online of any product or service.
The meaning of digital commerce expanded as more use cases came to light. Two important use cases that signifies modification of digital commerce definition are:
- Businesses that actually sell online and accept payment online as well.
- Businesses that sell online but accept payments offline as their business model might not support online payments.
In the first use case, businesses operating within B2C are commonly observed accepting payments online. Whereas, businesses operating within B2B commonly accept payments offline. This difference exist basically due to multiple factors such as:
- Large transaction amount involved which leads to more commission from payment gateways. In a few cases, this may be well over 4 percent.
- In few countries, the government charges tax and that often increases the overall cost. In certain cases, the tax may be well over 30 percent in few countries.
To understand the definition of digital commerce, feel free to go through the blog post shared by a market research company – Digital Commerce Insights. In addition to providing insights into ecommerce, the company provides two essential services for startups, SMBs, and large enterprises – market intelligence and business strategy consultation.
