E-commerce refers to commercial transactions conducted online. Any buying on selling performed via the internet is E-commerce.
In any E-commerce, there are three most common participants, businesses, administration, and consumers, the names are self-explanatory. While there are six primary e-commerce types, which are as follows:
1. B2B – Business to Business.
In this type, both the participants are businesses. As the name indicates, it is a mere trade between two businesses. It is the selling of products or services from one business to another through online portals. This involves companies providing raw materials or components. B2B buyers often have large demands and thus place large orders.
It is also characterized by multiple and repeated purchases instead of just one. Even the number of people involved in such a transaction is high. Companies generally place orders based on their monthly or yearly demands.
2. B2C – Business to Consumer.
When people are talking about e-commerce, they usually understand or refer to a B2C type of e-commerce. It is a transaction that was conducted via the internet between a business and a consumer for their personal use. B2B usually focuses on the facts and best deals while B2C happens to have an emotional approach.
Some companies function as both B2B and B2C while some are strictly B2C. Most internet users are familiar with this type of e-commerce. Consumers appreciate the easy availability and convenience of online shopping and thus this type is generally the most common type amongst all the e-commerce.
3. C2B – Consumers to Business.
It is not the trade that people are used to or even know of, but online platforms have allowed consumers to fulfill the requirements that are usually fulfilled by businesses. In such type, consumers create the substance of values that businesses consume and require. This also includes the consumer offering service to the business and getting paid for it. The most fitting example would be of online internships where the intern would provide their service and get paid for it.
4. C2C – Consumer to Consumer.
This type generally allows consumers to sell to other consumers, usually with the involvement of a third party. The consumer would post an item for sale and another consumer would bid to purchase it. The third party generally charges a commission for providing an online platform where anyone can sell their items or products. This is usually the trade people participate in when they are selling their used products.
5. B2A – Businesses to Administration.
The administration in this type usually refers to public administration or government domains. There are a large number of government branches that depend on e-service or products, directly or indirectly. It is the transaction done with the internet as a medium, between a business and an administration, which is not only limited to public domains, can also be some private organization.
6. C2A – Consumer to Administration.
Although the government is hardly known to buy services or products directly from an individual. But individuals usually undergo online transactions like filing tax returns or transmit payments from online portals.
E-commerce platforms usually include more than one of these types and thus facilitates a better flow of success.