Hi Everyone! In This Article, We Have Discuss 6 Types Of E-Commerce With Examples
Before understanding the definition of what is E-Commerce? And what are the types of E-Commerce? Firstly you should understand the definition of what is Commerce? So, let start the discussion:
What Is Commerce?
Commerce is used in the business industry. It plays an important role in businesses, basically works for exchange commodities or goods. In other words, the Commerce deals with selling and buying of goods. Which means when you purchase a service or a product from any company or sell some products or services to others is known as Trading of goods or services in commerce.
The proper definition of Commerce is.
“Commerce is a field of study that deals with businesses and their related operations”
What is E-Commerce?
E-Commerce is an electronically trading of goods or services. You can say that E-Commerce or Electronic commerce id a process that deals with selling goods/product or service and buying goods/products and service through any electronic medium. It is referred to as the paper-less exchange process of business information with Email, Electronic fund transfer, EDI etc.
Worldwide leading website of E-Commerce is eBay, Amazon, Flipkart and many more, these sites use e-payment systems. This method of using the E-payment system called internet banking.
Suppose e-wallet, credit cards, debit cards for purchasing or selling goods and products.
These platforms are so trendy these days because of their great services and benefits. It is the easiest way of purchasing for a customer, they can search for any of his needed items just by choosing them from their homes while sitting on their couches at any time in a day. So, I hope the basic concept of Electronic commerce system is clear. Now, let me tell some more information about various types of the e-commerce system.
Types of E-Commerce:
All these E-Commerce types are based on classification on nature of the transactions.
Business to Business (B2B)
Business to Consumer (B2C)
Consumer to Consumer (C2C)
Consumer to Business (C2B)
Business to Administration (B2A)
Consumer to Administration (C2A)
Let’s Start To Define Every Items Step By Step
1: Business to Business (B2B)
B2B E-Commerce deals with Companies doing businesses with other companies. Generally, there are some steps in a traditional business.
First of all, a product is manufactured in a company, and after they sell its product to the wholesaler. Now the next a wholesaler sells those products to the retailers. This business to business types of e-commerce systems is trading between a manufacturer, wholesaler and the retailer. All are doing their separate businesses.
This above diagram will illustrate the perfect model of B2B. There are 3 different businesses like manufacturers, wholesaler, and retailers. Hereby visiting a manufacturer company’s website, a wholesaler can purchase their products online by placing an order on their websites. The information of that order can be collected from the manufacturer through this Business to Business E-commerce system, and then the manufacturer will proceed the process by sending the order to the wholesaler. After getting that order wholesalers will proceed to sell this product to the retailers this procedure is called B2B model.
2: Business to Consumer (B2C)
Business to Consumer deals with companies to the customer. In this type of e-Commerce system, a company or business can sell their products, services or goods to their customer directly by using the B2C model. Here a customer can visit a company or business website has all the details about a product, service, or goods. After making the right decision the customer place an order on that company’s website, the company will process the order and send it directly to their customer. We are nowadays using these sites in your daily routine like Amazon, Flipkart, Daraz and many more. You can view the diagram given below.
3: Consumer to Consumer (C2C)
Consumer to consumer deals with used things or products. Here a consumer can post his products, goods, services and another consumer, who is interested, can purchase it by using this E-commerce system.
This web technology helps us to sell our used properties or assets like bike, car, house, any electronic items or kitchen items by using this model. OLX, Quicker, and many other sites can provide you this service.
By looking at this above diagram you can illustrate the process of the C2C model.
It’s a simple process to includes posting with details of a product.
Or you may also a service from selling consumer, the website is visited by purchasing consumer.
Suppose if the product he will place an order and selling consumer will send that product directly to the purchasing consumer.
4: Consumer to Business (C2B)
Consumer to Business deals with consumer giving his services or product to a company, it is a reverse form of business to consumer B2C model, where the company sells the product to the consumer. In this diagram, you can illustrate the C2B Model.
This type of E-commerce is mostly used for individual consumer giving services or products to an organization or a company. Especially if you from software field, you can give your services and use your skills by using some website like freelancer, fiver etc, the companies are waiting to hire a skilled service and all this is done by C2B model.
5: Business to Administration (B2A)
Business to Administration is also known as Business to Government (B2G) deals with companies to government agencies (Administration). In this model company and government agencies exchange information for doing businesses more easily as compared to off web. This below illustration of B2A can make you understand about this model.
B2A E-commerce system works for public sector marketing or marketing your products or services on government levels. It also gives a platform to bid your business products and services on Administration opportunities like tenders, application submission, auctions etc.
6: Consumer to Administration (C2A)
Consumer to Administration or Consumer to Government deals with the communication of consumer directly to the Administration.
The e-commerce system helps a consumer to post their feedbacks or request for information about public sectors, which is directly linked with government administration or authorities.
Such as paying electricity bill on government websites, paying taxes, paying health insurance as well.
It means the government websites probably done with C2A Model. Have a look at its diagram given.
Basically, C2A E-Commerce system builds a strong bond with an instant and easy solution of communication between consumers and government administrations.
Read More About E-Commerce Types Click Here.