What Is E-Commerce and Which Online Businesses Can Benefit from It?

e-Commerce is one of the key consumer behaviors in this era, as traditional buying and selling is increasingly being replaced by online channels. e-Commerce systems are, therefore, something that many businesses are paying attention to. Not only does it offer convenience and speed to buyers, but business owners can also introduce their products to people all over the world and easily close deals using online payment systems that can be completed with just a tap, anytime and anywhere.

 

Table of Contents

• What is e-Commerce?
• How many types of e-Commerce are there?
• What products are suitable for e-Commerce?
• What are the advantages of e-Commerce?
• Does e-Commerce have any limitations?
• What channels are available for e-Commerce?
• How to promote e-Commerce products to boost awareness and sales
• What are the e-Commerce trends for 2025?
• Frequently Asked Questions (FAQs)
• e-Commerce: An easy way to boost sales at your fingertips

What is e-Commerce?

e-Commerce is the buying and selling of goods and services over the internet. The most prominent and profitable e-Commerce markets are business-to-business (B2B) and business-to-consumer (B2C). Online transactions between two businesses are called B2B, while online transactions between retailers and general consumers are called B2C.

In recent years, the consumer-to-consumer (C2C) model has gained significant popularity, with well-known platforms like eBay, Etsy, and Taobao playing a major role. In addition, the latest developments in global e-Commerce have shifted the market to focus more on mobile channels. Nowadays, in addition to online platforms on computers and mobile devices, many e-Commerce entrepreneurs and online businesses also sell products through mobile applications and various social media platforms.

e-Commerce businesses are not limited to just websites—they also include various applications, as follows:

• Marketplace e-Commerce such as Shopee, Lazada, Temu 
• Social Media e-Commerce with Shopping features such as Facebook, TikTok, Line Shopping
• Large company e-Commerce such as Central, The Mall, Noc Noc, which have both websites and applications
• Food Delivery e-Commerce such as Lineman, Grab, Robinhood, Food Panda

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How many types of e-Commerce are there?

Although the main purpose of an e-Commerce website is to generate sales for businesses, it is important to understand the types of e-Commerce businesses before creating a system. They can be categorized as follows:

• B2C (Business to Consumer) The most common form in e-Commerce, where companies or stores sell products or services to end users, e.g., buying fashion products from websites or online applications.
• B2B (Business to Business) e-Commerce for business-to-business transactions, such as a factory selling raw materials to manufacturers, purchasing equipment or services that benefit businesses.
• C2B (Consumer to Business) Where consumers offer goods or services to businesses, or auction products on websites.
• C2C (Consumer to Consumer) Transactions between consumers via marketplaces, e.g., selling secondhand goods via websites or marketplace platforms.
• B2G (Business to Government) When the private sector provides goods or services to government agencies, such as a tech company contracted to develop information systems for the government.
• C2G (Consumer to Government) Seen in services where the public interacts with government agencies, such as paying taxes online or applying for social welfare benefits.
• G2B (Government to Business) Services or information that the government provides to businesses to facilitate operations, such as applying for permits or registering a business through digital systems.
• G2C (Government to Consumer) Services that the government provides directly to citizens, e.g., online driver’s licenses or submitting requests through government websites.

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What products are suitable for e-Commerce?

e-Commerce can be applied to various businesses, whether selling products or services, as long as they are not illegal or against shipping regulations. Generally, products can be grouped into three types:

• Intangible products such as applications, software, or CRM systems
• Tangible products such as food, cosmetics, clothing, etc.
• Service products such as hotel booking or flight tickets

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What are the advantages of e-Commerce?

Developing an e-Commerce platform is an attractive choice for entrepreneurs and offers convenience for consumers. The benefits include:

• Access to global markets e-Commerce allows any business to offer products and services to customers all over the world, greatly expanding the customer base.
• Reduced operating costs Selling online helps reduce expenses related to store rental, utilities, and staff. Online stores can also operate 24/7.
• Convenient buying and selling Consumers can purchase goods and services anywhere, anytime, through online systems.
• Direct communication with customers e-Commerce enables businesses to communicate and receive feedback directly from customers, leading to a better understanding of their needs and improved products and services—no middleman required.
• Data analysis for strategy development The e-Commerce system can collect and analyze customer purchasing behavior data, helping business owners to improve their marketing and sales strategies more effectively.
• Flexibility in adaptation Business owners can quickly change products, prices, and promotions according to market demand, allowing them to respond to trends and changes promptly.

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Does e-Commerce have any limitations?

Although e-Commerce systems may seem like a good option with many advantages, e-Commerce in Thailand still has some limitations:

• Customizing or controlling your online store It cannot always be customized exactly as desired.
• Possible product hesitation Online buying and selling prevents customers from trying or physically inspecting products before purchase, leading to hesitation, especially with products that require fitting, such as clothes or shoes.
• Technical issues Online transactions may face network problems, website crashes, or payment errors.
• Data security Online transactions are at risk of fraud or data breaches, especially if there are insufficient security measures to protect data. 

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What channels are available for e-Commerce?

There are many channels for e-Commerce, and it is not limited to just one form as long as it’s online. The most popular e-Commerce platforms today fall into three categories: 

1. e-Commerce Websites

e-Commerce websites come with functions that allow instant online buying and selling. You can build your own website or use ready-made e-Commerce platforms such as Magento, Shopify, Squarespace, and Weebly.

• Advantages More credibility, as the website serves as a storefront for brand and product visibility, and customer data can be collected for direct analysis or marketing planning.
• Limitations Requires website development and maintenance, with ongoing updates.

2. Marketplace Stores

Selling products on Marketplace platforms with large customer bases, such as Shopee, Lazada, or Amazon. Shops are opened within the platform system to list products for free, but fees are charged once a sale is made. 

• Advantages Instantly access a large customer base with a complete buying and selling system, making the process convenient, fast, and safe. Conversion rates increase as customers can buy easily. It also reduces lead time for closing sales, helping businesses generate revenue and grow rapidly.
• Limitations High competition from similar stores on the platform, and some platforms charge fees or commissions, requiring higher pricing.

3. Social Commerce

e-Commerce that uses social media platforms such as Facebook, Instagram, Line Shopping, or TikTok as the main sales channel, focusing on building close customer relationships using content to drive sales.

• Advantages Direct and fast communication with customers. Suitable for products that require storytelling, confidence building, or emotional triggers using content strategies.
• Limitations Less credibility than other formats and not suitable for certain products. Sellers must study their target group and choose appropriate marketing strategies.

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How to promote e-Commerce products to boost awareness and sales

As online product sales face rising competition, effective and well-understood e-Commerce product promotion will help create opportunities for increased sales, especially with these three methods: 

• Create digital marketing strategies via social media platforms such as engaging content, trend-jacking, or riding the latest topics on platforms like TikTok, Instagram, Facebook, Line, and X. The key is consistency. 
• Optimize your website to rank on search engines (SEO) A suitable approach for e-Commerce websites, involving website optimization and content creation using SEO structures to get the site on the first page or top rankings of Google or Bing. 
• Create and manage Google Ads campaigns Similar to SEO, but faster. Running ads or Google Ads incurs costs but uses keyword analysis to reach the right target group efficiently.

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What are the e-Commerce trends for 2025?

The e-Commerce market continues to show strong growth. In 2025, it is expected to grow by more than 7%, accounting for about 25.4% of the market, driven by consumer demand for convenience and the variety of online shopping platforms, especially social commerce like Facebook, which now offers easier payment than before. 

So you don’t miss any opportunities, KGP’s Meta Pay payment service allows business owners to send payment requests to customers directly through Messenger chat. It’s not just convenient but also secure, with payment status updated automatically upon receipt. Doing e-Commerce today is easier and increases your sales opportunities.

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Frequently Asked Questions (FAQs)

What are the top e-Commerce businesses in Thailand?

The most familiar e-Commerce businesses in Thailand are Shopee and Lazada, which are marketplace platforms. Next are social commerce groups, like Facebook and TikTok. 

What’s the difference between e-Commerce and E-business?

e-Commerce focuses solely on buying and selling goods or services via electronic media, while E-business encompasses all business transactions, both front and back office, conducted electronically—so e-Commerce is actually a part of E-business.

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e-Commerce: An easy way to boost sales at your fingertips

Running an e-Commerce business is an important step for entrepreneurs. It not only offers an opportunity to boost sales, but also reduces operating costs such as rent and staff. You should choose the format and type of e-Commerce that best suits your business, or use both an e-Commerce website and social commerce together to boost brand awareness.

To make online selling easy, “KGP” Meta Pay payment service enables customers to pay conveniently and quickly—shop and chat on Facebook, confirm orders, and close sales on Messenger instantly. It also supports credit cards, debit cards, or bank transfers via various banking apps, so you never miss a chance to boost your sales.

KGP, Payment. Make It Smooth 

FB : kgpthailand

LinkedIn : Kasikorn Global Payment

www.kasikornglobalpayment.com

References

1. Alda M. (n.d.). E-Commerce. statista.com

https://www.statista.com/markets/413/e-commerce/