Types of E commerce

Types of E commerce

Today's article talks about ecommerce: its concept, types, and most important features. 

Types of E commerce business
Types of E commerce 

 concept of e commerce

e commerce is the process of buying and selling goods and services online, and e-commerce customers can make purchases from their computers.

 In addition to other points of contact, including smartphones, smart watches and digital assistants, such as Echo devices, from Amazon.

E-commerce thrives in both business-to-consumer transactions (B2C) and business-to-business transactions (B2B).

 In the business-to-consumer e-commerce model, a retailer or other company sells directly to end customers; in business-to-business e-commerce (B2B), one company sells to another.

 In both sectors, the goal of most companies is to enable customers to buy anything they want, anytime, from anywhere, using any device .

Easily, big data are more difficult and complex sets of data, especially through new data sources. Data sets are so large that classical data processing programs cannot manage them.

But these vast amounts of data can be used to address business problems, which you wouldn't have been able to address before.


Types of e-commerce business

  1. B2B
  2. B2C
  3. C2B
  4. C2C
  5. B2G
  6. G2B

The world of e-commerce has witnessed vast growth in the last two decades, and this growth has grown more and more in times of quarantine and social distancing.

There is no doubt that this wide spread of e-commerce platforms around the world will bring changes to the behavior of the buyer, who is a pioneer of these sites.

The latest statistics talk about the number of customers online to about 2 billion people around the world, and the ongoing e-commerce through smart phones account for 72% of the total e-commerce globally.

B2B e commerce

  • This is how this type of e-commerce works, where commercial transactions take place between two parties who are already working in the business.
  • Any intended company that provides services and products to another company that needs to purchase that kind of services, or products to use and benefit from them.
  •  This is, in short, the concept of B2B e-commerce, which is one of the best types of e-commerce by internet usage in 2022.

Example: companies sell offices to companies, and companies provide secure and guarded personnel to companies.

B2C e commerce

It is the classic relationship in a business in which a business starts from the ground up.

The sale or trade here is between two parties, the First party is the company or brand that provides a product or service to individuals.

As it was one of the most famous types of e-business, it is one of the most popular types of e-commerce today.

 This is through the sale of products or services through an online store or any electronic means of sale over the internet .

C2B e commerce

It is a trade that takes place in contrast to the previous type of commerce, that is, it takes place from the consumer to the business owners.

This type of e-commerce is not very popular for business owners, but it is stepping towards the spread and success now, especially after the success of the concept of online commerce .

 One of the most famous examples of commerce C2B is the agreement of a social media celebrity with a company or a commercial organization to display their products and services and marketing them to their followers.

C2C e commerce

The idea of commerce through C2C is new and different to the ears of consumers and business owners as well, but it has started to spread recently with the increase in the number of internet users.

It is a business relationship between one consumer and another consumer, but how is this

With the spread of the culture of e-commerce and online selling, and the spread of a large segment of consumers who love to shop online.

 it was an opportunity for a group of these consumers to intervene, to find their chance to earn from selling commissions to other consumers.

Through the agreement via dedicated commission sale sites, some products and services can be bought and sold for a commission determined only by you.

One of the most famous examples of such sites is eBay.

B2G e commerce

This type of e-commerce depends on the agreement between two parties, one government and the other a company or brand.

It is possible for commerce companies to allocate their business and services only to government interests and institutions and not to individuals or other commercial

 companies, or there is a type of agreement for governments and another type for individuals.

 An example is the government's agreement with an e-commerce platform to create a website for ministries.

G2B e commerce

Commercial transactions in this type of trade are carried out between government institutions and commercial companies Government to Business.

This is done through online payments companies and sites, as it is when an individual or organization makes online payments to government institutions.

 These payment companies make a percentage of the money, and so the G2B trade, and the most famous forms of this trade, companies provide a private payment gateway for transactions, and government fees such as taxes.

What are the advantages and disadvantages e-commerce?

When you read the following list of ecommerce benefits for businesses and customers, you will feel that ecommerce is the holy grail of retail.

Advantages of e-commerce

  • Bypassing geographical restrictions.
  • Gain new customers by seeing the search engine.
  • Lower costs.
  • Locate the product quickly.
  • Eliminate travel time and cost.
  • Make a shopping comparison.
  • The possibility of preparing and managing deals, coupons and group purchases.
  • Provide abundant information.
  • Create targeted communications.
  • Store dates stay open all the time.
  • Create markets for niche products.

Disadvantages of e-commerce

E-commerce defects can be broadly classified into two main categories, technical defects and non technical defects.

Technical disadvantages 1

  • There can be a lack of system security, reliability or standards due to poor eCommerce implementation.
  • The software development industry continues to evolve and change rapidly.
  • In many countries, network bandwidth may cause a problem.
  • The seller may request special types of web servers or other software, which will separate the eCommerce environment from the network servers.
  • Sometimes, it becomes difficult to integrate an ecommerce software or website with existing applications or databases.
  • There may be software / hardware compatibility issues, as some ecommerce software may be incompatible with some operating system or other component.

Non technical defects

Initial cost-the cost of creating / building an ecommerce app internally can be very high. There may be delays in the launch of the e-commerce application due to errors and inexperience.

User resistance-users may not trust that the site is an anonymous vendor. This distrust makes it difficult to convince traditional users to move from physical to online / virtual stores.

  • Security / privacy – it is difficult to ensure security or privacy in online transactions.
  • Not touching or feeling products while shopping online is a disadvantage.
  • E-commerce applications are still evolving and changing rapidly.

Internet access is still less expensive and inconvenient to use for many potential customers, for example, those who live in remote villages.

Conclusion

Are you convinced that your business may benefit from the wonders of e-commerce Are the benefits of e commerce enough for you now to start an online store

So there are a lot of advantages of ecommerce that make commerce a great way to grow your business. However, just adding an ecommerce site is only part of the equation.

You also need to think about how to process an online application in the back office. Re-entering customer and order information into your order processing software would be an inefficient (and tedious) way of doing so …

This is a great formula in profit for your business if you want to start selling online, or want to improve the way you sell online.

In general, it is very easy, low-risk and low-cost to start an e business, whether you already have a physical store or not.

 As long as you choose your products wisely and have a proper business plan, there is plenty of potential for passive income and high ROI in the long run.

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