“E-commerce is buying and selling goods & services over the internet to cut costs and improve quality of goods and services.”

What is E-Commerce?

Types of Ecommerce

Types of ecommerce

B2B

B2C

C2C

B2GC2G

G2G

B2E

Business-to-Business

B2B e-commerce facilitates inter-organizational interactions & transactions.

The b2b e-commerce can be utilized to facilitate various facets of interaction among organization like inventory management, channel management, distribution management & payment management.

In supplier centric model, a supplier sets up the e-commerce marketplace where buyer business interacts with him.

Here the supplier may provide different pricing schemes for buyers

In buyer-centric model, the businesses with high volume purchase capacity create an e-commerce marketplace for purchase by starting an site on their own.

These sites are used by buyer for placing request for quotation and carry entire purchase process.

In intermediary-centric model, in the b2b, a third party sets up the e-commerce marketplace and attracts both buyer & seller business to interact.

It provides advantages such as increase options of pricing, quality, availability and delivery of goods.

Here the marketplace acts as hub for buyer & supplier, where buyer can compare the offerings of different suppliers.

Business-to-Consumer

B2c e-commerce offers consumers the capability to browse, select, and buy online, from variety of sellers & at better price.

The two entities are buying business & selling business. Here the sellers & consumers both get benefitted as they

can interact from any part of the world, direct marketing is possible, customization, and online customer service.

The b2c model is suited for the following:-

1. Goods that can be easily transformed into digital format.

2. Highly rated branded items

3. Items sold in packet

4. Items that can be experienced online. Example of b2c is www.amazon.com

The b2c e-commerce is utilized by three type of business:

1. Channel enhancement

2. Online internet based stores

3. Small business trying to surpass entry barriers.

Profit maximization is possible.Here the competition increases.

Consumer-to-Consumer

• The c2c model involves transactions between consumers.

• Here the consumers can advertise & sell products to another consumer.

• Both the seller and buyer must register with the auction site

For example: www.eBay.comHere when a customer wants to sell his product to

other customer on eBay site, he 1st have to interact with the site, then he can host his product.

When buyer wants to buy the product he will visit the site and search & select the desired product.

Now eBay will purchase the product from the seller & sell it to the buyer.

In this model, the business houses transact with the Government over the internet.

For example, similar to an individual consumer, business houses can also pay their taxes on the internet.

Business-to-Government

Consumer-to-Government

In this model, an individual consumer interacts with the government.

For example, a consumer can pay his income tax or house tax online.

These are the c2g transactions.

Government-to-Government

This model involves transactions between 2 governments.

For example, if the American government wants to buy oil from the Arabian government, the transaction involved are categorized in the G2G model.

Business-to-employee

B2E transactions grown as the industries now prefer to offer different kinds of services to their employees.

It is a great way of allowing online employees freedom of self-service.

It reduces a great amount of expenses and even saves the time.

It is a task that depends on the “trust” factor of offering work to the employees who live miles apart.

B2E requires great amount of investment

It needs a lot of structured work & preparation.

For the promotion of the product the business will need expert staff to implement various components of e-commerce for effective marketing.