3 Major Types of E-Commerce Business Models

3 Major Types of E-Commerce Business Models

Nowadays e-commerce has become very popular among people who want to buy and sell various things. According to the convenience it offers and the cost benefits to retailers and the cost savings to the customers. Moreover, the secrecy it offers. Most importantly, modern electronic commerce typically uses the World Wide Web at least at one point in the transaction’s life-cycle. However, it may encompass a wider range of technologies such as e-mail, mobile devices, and telephones as well.

Moreover, e-commerce is the purpose of the internet and the web to conduct business. Although, when we concentrate on commercial deals among organizations and individuals demanding selective information systems under the guarantee of the firm it accepts the form of e-business. Furthermore, the word ‘e’ is hitting momentum.

Therefore, you’ll need to familiarize yourself with each type of business model before you start your e-commerce business:


Business to Business (B2B)

B2B e-commerce refers to the electronic exchange of products, services or information between businesses rather than between businesses and consumers. For instance, online directories and supply exchange websites that allow businesses to search for products, services, and information and to initiate transactions through e-procurement interfaces.

In 2017, Forrester Research predicted that the B2B e-commerce market will top $1.1 trillion in the U.S. by 2021. Furthermore, accounting for 13% of all B2B sales in the nation.


Business to Consumer (B2C)

B2C is the retail part of e-commerce on the internet. It is when businesses sell products, services or information directly to consumers. The term was popular during the dot-com boom of the late 1990s when online retailers and sellers of goods were a novelty.

Today, there are countless virtual stores and malls on the internet selling all types of consumer goods. Moreover, the most recognized example of these sites is Amazon, which dominates the B2C market.


Consumer to Consumer (C2C)

First of all, C2C is a type of e-commerce in which consumers trade products, services, and information with each other online. Furthermore, these transactions are generally conducted through a third party that provides an online platform on which the transactions are carried out.

Mainly, online auctions and classified advertisements are two examples of C2C platforms. For instance, eBay and Craigslist being two of the most popular of these platforms. Because eBay is a business, this form of e-commerce could also be called C2B2C — consumer-to-business-to-consumer.


Consumer to Business (C2B)

C2B is a type of e-commerce in which consumers make their products and services available online for companies to bid on and purchase. Besides, this is the opposite of the traditional commerce model of B2C.

A popular example of a C2B platform is a market that sells royalty-free photographs, images, media and design elements, such as iStore. Another example would be a job board.


Business to Administration (B2A)

B2A refers to transactions conducted online between companies and public administration or government bodies. Furthermore, many branches of government are dependent on e-services or products in one way or another. Moreover, especially when it comes to legal documents, registers, social security, fiscals, and employment. Businesses can supply these electronically. Therefore, B2A services have grown considerably in recent years as investments have been made in e-government capabilities.


Consumer to Administration (C2A)

First of all, C2A refers to transactions conducted online between individual consumers and public administration or government bodies. Moreover, the government rarely buys products or services from citizens. However, individuals frequently use electronic means in the following areas:

  • Education: disseminating information, distance learning/online lectures, etc.
  • Social security: distributing information, making payments, etc.
  • Taxes: filing tax returns, making payments, etc.
  • Health: making appointments, providing information about illnesses, making health services payments, etc.

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