Ecommerce is a term used for selling and buying products and services over the internet. It is also referred to as electronic commerce or internet commerce.
What likely counts as the very first legitimate online transaction goes to Dan Kohn in August 1994, creating a website called NetMarket, the Shopify video reports.
Since then, we have come a long way. Nowadays, you name anything or any service you can’t obtain using the internet.
Therefore, you need to learn about different features of the e-commerce business as well as about the different types of e-commerce businesses. There are different types of e-commerce businesses that can be classified based on products and services sold by the e-commerce businesses, parties involved in the e-commerce business transactions, and the platform used for conducting e-commerce business transactions.
In this article, you will learn about the different types of e-commerce businesses
It will help you to establish a better understanding of the e-commerce business.
Types of eCommerce
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)
1. Business to business (B2B):
The meaning of business-to-business e-commerce business is clear from its name. The transaction occurs between two businesses in a Business-to-business (B2B) e-commerce business where a business sells the products or services to another business.
This e-commerce transaction takes place to reduce the business overhead of one business. Take the example of Blake envelopes. This website of this B2B eCommerce business provides you services to design envelopes for your business.
On their website, you will find products classified based on colour, style, range, pack size, and types. It is considered one of the best business-to-business (B2B) websites that provides you with products you didn’t think were exciting.
2. Business to Consumer (B2C):
Business to Consumer (B2C) is the most basic type of eCommerce business. In this business, one party is a business that sells products and services to another party which is a consumer.
One of the most famous examples of a B2C eCommerce business is Amazon.com, where the company sells products through its website and app directly to the end consumers.
3. Consumer to Consumer eCommerce business:
In this type of eCommerce business, both parties included in a business transaction are consumers, meaning a consumer is the seller of a product or service, and another is the buyer.
The most famous example of this type of eCommerce business is OLX. To sell a product on the OLX platform, one must make an account on the app or website and post the details like the product’s price, features, pictures of the product, etc.
Along with the contact details, the people who want to buy that product can reach you. People can negotiate the product’s price in person or over the phone and can sell products.
4. Consumer to Business (C2B):
This type of eCommerce business is the opposite of the business-to-consumer (B2C) type of eCommerce business. In this business, consumers develop products and sell them to companies or provide services. Businesses pay consumers for their services and products.
It is an example of an innovative type of eCommerce business. Let us understand with the help of a few examples that you might also come across or have participated in C2B.
How often do you read the reviews of a product before you buy it? And how constantly have you reviewed the product that you have purchased online?
There might be a massive difference between the number of both answers. Companies know that people read reviews before they buy products. Therefore, they pay people like you and me to write positive reviews about their products and to give a good ratings.
It helps them sell their products, and people who write reviews earn money for their services. Similarly, many companies give their new products to people and ask them to provide feedback after using those products in exchange for cash or rewards.
5. Government to Business (G2B):
This type of e-commerce business is where one party involved in the business transaction is the government or official authority, and another party involved in the business transaction is a business or enterprise.
G2B business occurs when a company uses the government’s products and services and pays for them. For example, online companies are required to pay internet tax for using the internet to sell goods and services and to run their business.
6. Business to Government (B2G):
This type of eCommerce business takes place when a government entity uses the products or services of a business. This type of business transaction is quite common. For example, a government entity uses an online platform to promote its cause.
The government uses a popular platform like Facebook, Instagram or Twitter to promote their cause and reach the public, when a government hires a web designer to design their official website, or when the government uses internet services provided by a business to run their day to day work.
7. Consumer to Government (C2G):
This eCommerce business takes place between consumer and government where the consumer provides products and services developed by them to the government. We all participate in this type of business transaction in our day-to-day life.
For example, you are in a consumer-to-government e-commerce business when you pay income tax or pay a traffic ticket or pay for property tax, etc.
Ecommerce businesses deal with selling and buying physical goods. For example, you can order your next week’s groceries using the Amazon App grocery service, purchase insurance, order food, find people to marry, order house cleaning services, find a plumber, and buy air or rail tickets. Book movie tickets, and you can also purchase digital goods like eBooks. Music, movies, videos, pictures, etc.
In 2019, the percentage of e-commerce transactions was approximately 13.7%, and it is expected that the total percentage of online retail transactions will be 95% by 2040.
That means in future, almost all business transactions, whether small or big, will take place online. Therefore, if you plan to start your own business, don’t mistake neglecting your e-commerce business.
Even if you have been in business for a long time, now is when you should take your business to another level by taking the company online.