Think how it was to shop 10 years back…and now with the evolution of the internet we have everything at our fingertip…Literally! Where did you go to buy clothes? How did you get your groceries? What did you do when it was time to buy a new mattress? Ecommerce businesses have transformed the way we shop today and redefined what is possible.
If you’re starting an ecommerce business, odds are you’ll fall into at least one of these 6 general categories. Each has its benefits and challenges, and many companies operate in several of these categories simultaneously.
There are 6 basic types of e-commerce:
Business-to-Business (B2B)– Business-to-Business (B2B) e-commerce encompasses all electronic transactions of goods or services conducted between companies. Producers and traditional commerce wholesalers typically operate with this type of electronic commerce.
Business-to-Consumer (B2C)– The Business-to-Consumer type of e-commerce is distinguished by the establishment of electronic business relationships between businesses and final consumers. It corresponds to the retail section of e-commerce, where traditional retail trade normally operates. These types of relationships can be easier and more dynamic, but also more sporadic or discontinued.
Consumer-to-Consumer (C2C)– Consumer-to-Consumer (C2C) type e-commerce encompasses all electronic transactions of goods or services conducted between consumers. Generally, these transactions are conducted through a third party, which provides the online platform where the transactions are actually carried out.
Consumer-to-Business (C2B)– In C2B there is a complete reversal of the traditional sense of exchanging goods. This type of e-commerce is very common in crowdsourcing based projects. A large number of individuals make their services or products available for purchase for companies precisely seeking these types of services or products
Business-to-Administration (B2A)– This part of e-commerce encompasses all transactions conducted online between companies and public administration. This is an area that involves a large amount and a variety of services, particularly in areas such as fiscal, social security, employment, legal documents, and registers, etc. These types of services have increased considerably in recent years with investments made in e-government.
Consumer-to-Administration (C2A)– The Consumer-to-Administration model encompasses all electronic transactions conducted between individuals and public administration.
Both models involving Public Administration (B2A and C2A) are strongly associated to the idea of efficiency and easy usability of the services provided to citizens by the government, with the support of information and communication technologies.
The main advantage of e-commerce is its ability to reach a global market, without necessarily implying a large financial investment. 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.