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Types of E-Commerce

The several types of e-commerce models in use today are classified based on the nature of the interaction with players are:


Business-to-Consumer(B2C)
  • In B2C, businesses sell directly a diverse group of products and services to customers. In these cases, e-commerce supplements the traditional commerce by offering products and services through electronic channels. Wal-Mart Stores and the Gap are examples of companies that are very active in B2C e- commerce. 
  • Some of the advantages of these e-commerce sites and companies include availability of physical space (customers can physically visit the store), availability of returns (customers can return a purchased item to the physical store) and availability of customer service in these physical stores. 
  • Figure 1.2 illustrates a B2C relationship. (ISP- Internet Service Provider).




  • For example, the Amazon.com is B2C e-commerce is. This e-tailor acts predominantly as a goods marketer in e-space. Amazon.com also sells digital goods such as e-books and offers a platform for other retailers. 
Business-to-Business(B2B)
  • Business-to-Business e-commerce holds electronic transactions among and between businesses.
  • The Intermet and reliance of all businesses upon other companies for supplies, utilities and services has enhanced the popularity of B2B e- commerce and made B2B the fastest growing segment within the e- commerce environment.
  • Companies using B2B e-commerce relationship observe cost savings by increasing the speed, reducing errors and eliminating many manual activities.
  • In a B2B environment, purchase orders, invoices, inventory status, shipping logistics and business contracts handled directly through the network result in increased speed, reduced errors and cost savings. 
  • B2B e-commerce reduces cycle time, inventory and prices and enables business partners to share relevant, accurate and timely information. The end result is improved supply-chain management among business partners. The figure 1.3 illustrates a generic B2B relationship.



Consumer-to-Consumer (C2C) 
  • Using C2C e-commerce, consumers sell directly to other consumers using the Internet and web technologies.
  • Individuals sell a wide variety of services/products on the Web or through auction sites such as eBay.com and gittigidiyor.com through classified ads or by advertising. 
  • Figure 1.4 illustrates a general C2C e-commerce relationship. Consumers are also able to advertise their products and services in organizational intranets and sell them to other employees.



Consumer-to-Business(C2B) 
  • Consumer-to-Business (C2B) e-commerce that involves individuals selling to businesses may include a service/product that a consumer is willing to sell. Individuals offer certain prices for specific products/services. 
  • Companies such as pazaryerim.com and mobshop.com are examples of C2B. Figure 1.5 shows a C2B e-commerce relationship.



Business-to-Employee (B2E)
The transactions between the business and the employee are called business-to- employee services. Searching for a particular type of information from the vast information base of the company may be time consuming for an employee.

To overcome this, B2E application provides employees a self-service capability. The intranet-based business-to-employee applications are sometimes used for implementing improved employee relationship management initiatives. 

Business-to-Government (B2G) 
The transactions between the business and government over electronic network are termed as B2G. B2G e-commerce involves the use of internet for public procurement, licensing procedures, government-related formalities and filing of tax returns.

For example, when Classic Shoes Ltd., submits the tax returns to the income tax department through internet, then it is B2G e-commerce. .

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