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Home » Glossary » E-commerce



What is an E-commerce?

E-commerce (electronic commerce) refers to the purchasing and marketing of products and services and the transmission of payments and data across an internet channel. Business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer, and consumer-to-business transactions are the common types of e-commerce.

E-commerce works when customers access an online marketplace to browse through and make purchases for products or services using their own devices powered by the internet.

The customer’s internet browser will communicate with the e-commerce website server as the order is placed.

What is an E-commerce

Different types of E-commerce

If you’re launching a business online, your company probably falls into one of these categories. Each type has its own benefits and drawbacks, and many companies simultaneously operate in multiple categories.

Business-to-Business (B2B)

A business-to-business (B2B) transaction occurs between two companies, a manufacturer and a wholesaler, or between a wholesaler and a retailer. Business-to-business are transactions that take place between businesses rather than between businesses and individual customers.

A seller produces its product or service to other businesses in a B2B business model. The buyer is sometimes the ultimate user, although the buyer resells to the consumer most of the time.

B2B transactions have a longer selling process but greater order values and more repeat orders.

Business-to-Consumer (B2C)

Business to consumer, or B2C, is a sort of commerce transaction in which companies sell items to consumers directly. Originally, B2C is when people shopping for themselves at the mall, diners eating at a restaurant, or subscribers electing to purchase pay-per-view TV at home. However, B2C is now more commonly used to refer to online product sales, also known as e-tailing. Manufacturers or retailers sell their items to customers via the internet.

Consumer behavior is the primary driving force in B2C marketplaces. Today, market research is focused on determining what customers want and how to differentiate your products or services from those of competitors.

Consumer-to-Consumer (C2C)

Customer to customer (C2C) is a business concept in which customers trade with one another, usually over the internet. Auctions and classified advertising are two examples of C2C markets.

The purpose of a C2C is to facilitate these connections by assisting buyers and sellers in finding each other. Customers can profit from product rivalry by finding products that would otherwise be difficult to find.

Consumer-to-Business (C2B)

Consumer-to-business (C2B) refers to a business strategy in which a consumer creates a product or service that a company utilizes to fulfill a business process or achieve a competitive advantage.

The usual business-to-consumer (B2C) model, in which a company creates services and products for customer consumption, is radically transposed by the C2B technique.

Reverse auctions are a type of C2B business model in which clients set the price for a product or service they want to acquire. A consumer gives a business a fee-based opportunity to sell the business’s effects on the consumer’s blog, which is another kind of C2B.

Business-to-Administration (B2A)

Business-to-Administration (B2A) uses web-based transactions between businesses and government agencies or departments. In one way or another, many branches of government rely on e-services or goods, particularly when it comes to legal documents, registrations, social security, fiscals, and employment.

These can be provided online by businesses. Investments in e-government capabilities have resulted in a significant increase in B2A services in recent years.

Consumer-to-Administration (C2A)

All electronic transactions between individuals and government agencies are classified as consumer-to-administration (C2A) e-commerce. Consumers can use the C2A e-commerce model to address their questions and requests for information on the public sector to their local government authorities.

Some areas where C2A is helpful for the government are:

  • Education. Information dissemination, distant learning/online lectures, and so on.
  • Social security is a type of insurance. Information distribution, payment processing, and so on.
  • Taxes. Making payments, completing tax returns, and so on.
  • Making appointments, providing illness information, and paying for health services, among other things.

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