Understanding the Different Types of E-Commerce Business Models

Electronic commerce (eCommerce) refers to the buying and selling of goods, services, and products over the Internet. E-commerce is now one of the fastest-growing trading markets around the world. 

There are 6 basic types of eCommerce business models, including, B2B, B2C, C2C, C2B, B2A, and C2A.

What are Different Types of e-Commerce Business Models?

E-Commerce Definition: Understanding the Different Types of e-Commerce Business Models

What is E-Commerce?

Electronic commerce or eCommerce is a system of buying and selling goods, services, and products by using the Internet and transferring money and data to carry out these transactions.

E-commerce is often used to refer to the sale of products and goods on the Internet, but it can describe any type of business transaction that can be used online to make it easier for customers to save time and money.

Since the beginning of the nineties, the concept of e-commerce has spread around the world. E-commerce has provided many advantages for businessmen and owners of large companies who want to offer their goods and products for sale or purchase in all countries on the Internet.

E-Commerce supports sales and customer service operations. There are many sites that work in the field of e-commerce.

There are some basic features of E-commerce that you must know in order to provide you with many questions when deciding to create a website that works on electronic commerce, namely:

➤E-commerce has the ability to access the global market through the Internet without the need for large financial investments.

➤It allows suppliers to be closer to their customers, which leads to increased productivity and competitiveness of companies.

➤It provides you with the information you need and necessary for each product, and you can also compare it to another product from any other website.

➤It saves effort and time for consumers and eases the buying and selling processes in a successful electronic way.

➤It offers more efficient pre- and post-sale support with these new and varied types of e-commerce.

What are the 6 Types of E-Commerce Business Models?

There are many ways to promote and publish goods and products on the Internet. E-commerce is divided into 6 main sections, namely:

E-commerce is divided into 6 basic types, namely:

1. Business-to-Business (B2B)

2. Business-to-Consumer (B2C)

3. Consumer-to-Consumer (C2C)

4. Consumer-to-Business (C2B).

5. Business-to-Administration (B2A)

6. Consumer-to-Administration (C2A)

e-Commerce Business Models

Let's see the 6 different types of eCommerce business models in detail:

1. Business to Business (B2B):

Business-to-business (B2B) is a form of transaction between businesses. Business-to-business (B2B) marketing is the marketing of products between two businesses, rather than between a company and individual consumers, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer. 

 (B2B) Business to Business is an electronic trade exchange between a company and another company. It depends on the marketing relations between the two companies, such as when the company presents its products to the other company, and they exchange marketing and trade between them, to provide more opportunities for them to sell using E-commerce.

2. Business-to-Consumer (B2C):

Business-to-Consumer (B2C) is the method of doing commerce conducted directly between a business and consumers who are the end-users of their products or services, bypassing any third-party retailers, wholesalers, or any other brokers.

B2C e-commerce is based on e-commerce between companies and consumers, and it is compatible with the retail department of E-commerce.

B2C marketing is one of the easiest and most profitable types, and this type develops greatly due to the increased use of the Internet all over the world, and it contains many types of consumer goods, such as: (computers, programs, books, shoes, cars, foods) and all kinds of electronic devices and others.

3. Customer to Customer (C2C):

Customer to customer (C2C) is a business model that provides an innovative way to allow customers to interact with each other. C2C marketing facilitates commerce between private individuals, typically in an online environment.

This type of e-commerce works on all electronic transactions for goods and services that take place between consumers in general. These transactions are carried out by another party, which provides the online platform, where the transactions are actually executed.

4. Consumer-to-Business (C2B):

Consumer-to-Business (C2B) is a business model in which the end-user or consumer creates products and services that companies and organizations consume to complete a business process or gain a competitive advantage.

This type of e-commerce depends on the consumer, as he sells his own products or services to an institution that carefully searches for these types of services and products.

C2B) e-commerce is trendy in projects, through which young people work freelance and benefit from this type well.

5. Business-to-Administration (B2A):

Business-to-Administration (B2A) is an e-commerce category that includes all transactions that take place on the Internet between companies, public administration, or government agencies.

B2A e-commerce involves many services, particularly in areas such as social security, employment and legal documents and provides an online service for companies, the public sector, the government, generally through a website.

Business-to-administration or Business-to-Government (B2G) is considered a derivative of business-to-business marketing.

B2A (Business to Administration) has a large amount and a variety of services, such as: (financial fields, social security, employment, documents, legal records), and many others.

B2A services have increased significantly in recent years with investments in E-government.

6. Consumer to Administration (C2A):

The Consumer-to-Administration (C2A) is a business model that encompasses all electronic transactions conducted between individuals and public administration.

C2A e-commerce provides a direct communication link between consumers and governments (e.g. local authority).

The examples of C2A e-commerce include:

Social Security: The distribution of information, making payments, etc.

Education: distance learning, disseminating information, etc.

Health:  information about illnesses, appointments, payment of health services, etc.

Taxes:  filing tax returns, payments, etc.

Conclusion:

In Business to Government (B2G) e-commerce, the trade companies allocate their business and service only to government departments and institutions and not to individuals or other commercial companies, such as the government’s agreement with one of the e-shop creation platforms to implement a site for government ministries.

Government to Business (G2B e-commerce is done through online payment companies and websites, where when an individual or institution makes online payments to government institutions, these payment companies earn a percentage of the money and thus the G2B is traded.

One of the most popular forms of this trade are companies that provide special payments for government transactions and fees such as taxes.