Types of E-commerce
E-commerce or e-commerce is a business that, in one way or another, is related to the delivery, advertising, promotion, sale of services or goods over the Internet. For simplicity, any activity with a commercial focus on the world wide web falls within the definition of online commerce. This field originated in the USA, and then in the late 90s, it developed in Europe.
The e-commerce groups categories of general application such as online sales, online banking, stocks of tickets and hotels, transactions with payment systems, marketing, and online advertising.
At a technical level, electronic commerce on the Internet remains based on three pillars: a server, a database, and a system for delivering products or services to the customer. For the first pillar, a fast and quality server is essential. The database is necessary for large projects, and the delivery of electronic goods or services does not require complicated logistics.
Types Of Electronic Commerce On The Internet
The e-commerce sector remains classified according to the target audience for the company:
B2B (Business to Business)
The Business to Business segment involves commercial relationships between legal entities and economic subjects of the market. Companies and manufacturers interact with each other, enter into agreements, association contracts for the supply, sale, and purchase of goods or services. Specialized Internet sites and interactive databases are used in the B2B environment to establish contacts, find partners and negotiate.
B2C (Business to Consumer)
The Business to Consumer sector refers to the trade of goods and services between legal entities and natural persons. It is a type of retail, but only with the help of online platforms: stores, services, banks, and others. The benefit for customers is a greater variety of options, the convenience of ordering, and the delivery of crops to their home or office. Electronic commerce allows the entrepreneur to reduce the costs of maintaining sales and warehouse space.
B2G (Business to Government)
In the Business to Government niche, there are the following market participants, on the one hand, legal persons (companies, corporations, and brands) and, on the other, municipal and government agencies. Transactions in B2G remain carried out based on bids, contests, or quotes. This area of e-commerce deals with large transactions, placing strict requirements on market participants. The company participating in the tender must have high status and an impeccable reputation.
C2C (Consumer To Consumer)
Within the Consumer to Consumer niche, electronic commerce is characterized by transactions between individuals. The success of online markets remains based on the commercial relationships of users through the electronic advertising system.
G2C (Government to Citizens)
One type of electronic commerce that is very common in recent years is Government to Citizens, which allows access to government information through online services. For example, the payment of taxes and fines, the registration of projects and forms of commercial activity, obtaining permits, and others. This category also includes citizen information support, so the G2C does not fully belong to the commercial niche.
C2B (Consumer to Business)
This type of Consumer Business electronic commerce is exciting since the customer sets the cost of the goods and services. In other words, buyers use voting to determine the price they would like to buy the offered product. However, the final decision to sell or not remains made by the product owner. Under the C2B system, the website or any other electronic marketplace acts as an intermediary looking for sellers for the price formed from potential buyers.
G2G (Government to Governmen)
In the sphere of Government-to-Government e-commerce, it deals with business relationships between state bodies, such as the delivery of products, the provision of services, etc. This interaction takes place through online technologies.
B2P (Business to Partners) or B2L (Business to alliance)
The Business ton Partners segment refers to business relationships with service and product providers, affiliates, partner organizations in the same network, or third-party companies.
B2E (Business to Employee)
The industrial relations sector can also remain commercialized. Business to Employee refers, in this case, to the use of various automation systems to manage business processes, as well as corporate tasks. These systems remain combined into an intra-corporate network, an intranet, which accesses the global system through secure channels.
B2B2C (Business to Business to Customer)
It is an example of combining two types of e-commerce, Business to Business and Business to Customer—integrating B2B and B2C systems in a single platform. For example, a company purchases products in China and contracts freight forwarders to ship orders to buyers’ addresses. The result is the following string: seller (B2B) – warehouse (B2B) – buyer (B2C).
E2E (Exchange to Exchange)
It is a very specialized type of Exchange to Exchange e-commerce, in which sellers and buyers interact between different electronic exchanges. For example, electronic currency exchange services.
Currently, the B2B and B2C niches occupy the largest share. The entry-level in the public procurement sector is relatively high, so it remains not distinguished by mass. The G2C and C2C cavities are developing well. In any case, Internet commerce must include the following elements:
- A site (website, account, online store, Landing Page).
- Channels to attract traffic ( SEO, SMO, contextual advertising, targeted advertising).
- Customer service and order processing systems: CRM, sales, support services.
- Acquisition, supply, delivery, return services.
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