Types of E-Commerce
Types of E-Commerce
The term commerce refers to the trading of goods and/or services. E-commerce is a modern-day invention that facilitates the trading of goods and/or services through electronic means, or more precisely, the internet. This article is an account of the various types of e-commerce businesses, each of which caters to different business models.
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The following are the different types of e-commerce platforms:
- Business-to-Business (B2B)
- Business-to-Consumer (B2C)
- Consumer-to-Consumer (C2C)
- Consumer-to-Business (C2B)
- Business-to-Administration (B2A)
- Consumer-to-Administration (C2A)
A B2B model of business involves the conduct of trade between two or more businesses/companies. The channels of such trade generally include conventional wholesalers and producers who are dealing with retailers.
Business-to-Consumer model of business deals with the retail aspects of e-commerce, i.e. the sale of goods and/or services to the end consumer through digital means. The facility, which has taken the business world by storm, enables the consumer to have a detailed look at their proposed procurements before placing an order. After the placement of such orders, the company/agent receiving the order will then deliver the same to the consumer in a convenient time-span. Some of the businesses operating in this channel include well-known players like Amazon, Flipkart, etc.
This mode of purchase has proved to be beneficial to the consumers when compared to the traditional method, as they are endowed with access to helpful contents which may guide their purchases appropriately.
This business model is leveraged by a consumer for selling used goods and/or services to other consumers through the digital medium. The transactions here are pursued through a platform provided by a third party, the likes of which include OLX, Quickr, etc.
A C2B model is the exact reversal of a B2C model. While the latter is serviced to the consumer by a business, the C2B model provides the end consumers with an opportunity to sell their products/services to companies. The method is popular in crowdsourcing based projects, the nature of which typically includes logo designing, sale of royalty-free photographs/media/design elements, and so on and so forth.
Note – the term ‘crowdsourcing’ was coined in the year 2005 as a sourcing model that facilities individuals/organizations to obtain goods/services from internet users.
This model enables online dealings between companies and public administration, i.e. the Government by enabling the exchange of information through central websites. It provides businesses with a platform to bid on government opportunities such as auctions, tenders, application submission, etc. The scope of this model is now enhanced, thanks to the investments made towards e-government.
The C2A platform is meant for consumers, who may use it for requesting information or posting feedbacks concerning public sectors directly to the government authorities/administration. Its areas of applicability include:
- The dissemination of information.
- Distance learning.
- Remittance of statutory payments.
- Filing of tax returns.
- Seeking appointments, information about illnesses, payment of health services, etc.
Here are a few important benefits, among a host of others, of this revolutionary model of business:
- E-commerce bridges the gap between local sellers and global audiences, thereby helping them in widening their reach across the global market segment without making further investments.
- The consumers are provided with a gamut of options for procurements.
- It facilitates the round-the-clock conduct of trade.