The CAC Guide to The E-commerce Business Model

 The major goal of Crucial App Concepts is to inform and help clients develop online services. A major factor in this practice is a process called e-Commerce, effectively a form of an online business model, a descriptive word for any transaction model between a business, consumer, or another business on the internet. Although this is a fairly new practice, e-Commerce has grown 27% globally since its inception in 1994. Of course, most of this was from the recent events of 2021. Hopefully, now you realize why this is an important subject to understand as it will be the future of transactions with your customers.


Although the history of E-commerce is unneeded, we will still cover the subject. As previously mentioned, the first transactional purchase over the internet was in 1994. That one purchase, made by Phil Brandenberger, was the first of many purchases that would soon open a door to a whole new world of digital transactions. However, the foundation was created by Michael Aldrich, who in 1979 connected his computer to his television with his telephone line. This brings us to today 2022, where we order food on our phones and purchase materials at a click of a button.


Moving on to a much more important subject, how does e-commerce help me in my online goals? Well, as stated before e-commerce is described as a form of a business model that only has financial transactions over the internet. This has many forms such as B2B, which is business to business. Or a much more common B2C, which is business to consumer. The other two e-commerce business models would be C2C and C2B, which if you had been paying attention to, you could guess what the titles of these titles are. Typically, these services are on a website, for CAC we would be a service and digital product-based e-commerce website.  The most common e-commerce sites today would be Amazon, eBay, etc.


There are many benefits for an e-commerce business model in everyday life. I mean you can order a buffet from an online business, or millions of random knick-knacks. Which leads to marketing, how do these e-commerce businesses market to people? well, they typically use blogs like this one to advertise their products/services on social media. A good example of this is Google or Facebook ads. Other than ads e-commerce businesses use influencers like YouTubers and tick-tockers to use their videos to spread awareness of what their company does. Some companies do this to benefit themselves and the influencer. Right now, CAC is working with newer Twitch Streamers to support them along with our services.


Now I would like to focus on some technical terms that are crucial to an understanding before you start or work with an e-commerce-based business. 

  • Fulfillment is a term used when you package a product and send it out to a consumer, or when you use a third party to package a product for the consumer. 
  • Profit Margin is the difference between what you’re paying to manufacture something and the cost of the consumer buying it.
  • Average Order Value is what it sounds like the average amount that consumers spend while visiting your store.
  • Landing Page is where the customer is sent to after clicking a specified link. 
  • Bounce Rates are the percentage of people that leave your store page after viewing a specific page. 
  • Conversion as it sounds to convert a consumer to your customer. 
  • Conversion Funnel is the process of dragging a consumer to a purchase button making them a customer.
  • Conversion Rate is the rate of percentage of which people become customers and those who just visited your store. 
  • Customer Lifetime Value (CLV) is the predicted revenue that a buyer can generate overall clicks they have had on your website.
  • Cart Abandonment Rate is the percentage of customers putting an item in their cart and not completing a purchase.
  • Click-Through Rate is the rate at which people view your ad by clicking on it.
  • Cost Per Click is the average cost of getting someone to click on a link to your page.
  • Call To Action is how you try to convince someone to complete a transaction on your website. 
  • Retargeting is the process of targeting previous customers so they can make a secondary purchase. 
  • AB Testing is testing A versus B this can be Ads on one page compared to Ads on another.


The future offers many routes for shopping. Chances are that we might use Augmented Reality to virtually visit our favorite shops or test products out. Later on, in the development of these business practices, it might be part of modern life to rarely go to a target or a dealership. We would probably be at home working for a company, or heading out to a factory to help supervise or work at a factory. Now that might be hard to believe in, or difficult to allow into your life as fact, but that is in fact how the world will end up. This blog was to inform you on how to use the e-commerce business model and how you can evolve with it in the future.