Types of Ecommerce Businesses
Contrary to what people believe, ecommerce is not only present on the internet, but it existed in B2B (business to business) transactions before the advent of the web, way back in the 1970s by means of Electronic Data Interchange (EDI) and through Value Added Networks (VANs). Ecommerce can be categorized into 2 primary categories including:
B2C (Business to Consumer)
B2B (Business to Business)
C2C (Consumer to Consumer)
C2B (Consumer to Business)
The internet provides businesses the opportunity to attract the attention of customers from all over the globe. When it comes to any online business, it helps in the creation of new channel for marketing your products, requiring no material investments. Products (for example, software), services or information can be delivered through the internet and the entire process of sales including payment is possible using the online medium.
The online medium is much affordable to buy and sell products because of no overhead costs, maintenance and low communication cost. There is no need of buyer-seller communication, no time wasted on visiting physical stores, and customers can get more information about products with the simple click of a button. The seller is also able to quickly respond to changes in consumer demand, assess customer behavior, and of course save money on employees.
Online shopping is also preferred by customers all over the world because of its global reach, 24/7 operation, and effective customer service.Kinds of Ecommerce
The 2 most common partakers are businesses and customers. So, based on it, here enumerated is the discussion about the main types of ecommerce business.
B2C (Business to consumer) – This is a transaction performed in retail trade with individual shoppers. This distinctive buyer of your store is a customer or buyer.
B2B (Business to business) – A huge number of transactions (including all kinds) conducted now comes under this category. It includes electronic markets and intra-system, i.e. IOS.
C2C (Consumer to consumer) – When a customer sells products directly to consumers, it falls into this category. Examples of this kind of transaction include selling personal properties in the form of land and machinery, houses. Other examples are C2C services for sales information, internet advertising or advisory services. It involves electronically-aided transactions between individuals, frequently via a third party. The most relevant example is Ebay where a person can list a product to be sold and others can bid for the same to buy it.
C2B (Consumer to business) – In this category, individuals, i.e. consumers create value and businesses consume the value. This point can be explained with the help of an example. Say for instance, a customer offers a unique and purposeful idea for a new product development. This means that a consumer is creating value for a particular business and only if that business embraces the idea.
Special Types of Ecommerce
There are some platforms where ecommerce has witnessed tremendous growth. The two most important ones are:
Fcommerce: This is nothing but Facebook (FB) commerce. The extreme popularity of this social networking site has led to successful conducting of business in the FB environment.
Mobile Commerce: The fast penetration of handheld, i.e. mobile devices such as smartphones and tablets with internet access opens up an ocean of opportunities for ecommerce retailers.
Other Types of Ecommerce Businesses
Besides the above, there are other kinds of ecommerce businesses such as:
What kind of ecommerce business do you prefer and why? Share your views with us or read about more interesting topics posted in our blog.