12 Major Types Of eCommerce
“Are you a businessman, or a small retailer? Are you willing to expand your business goal globally?. Then you should know about What is E-Commerce?
And the fundamentals of E-Commerce, which everybody – especially you should know in the Internet Era!
Electronic commerce or E-Commerce refers to all commercial transactions done online. There are several types of business models available in the E-Commerce platform. We discuss the basic types of E-Commerce business models.
1. B2B (Business to Business):
This E-Commerce business model refers to the transactions among business to business. One business sells product or service to another business is called B2B model. If a business purchases a billing software or website domain for his business from another business, it is also said to be a B2B model of E-Commerce
`We can take another example of the B2B model. If a wholesale business sells its products to retail business is also called a B2B Model.
If a manufacturer sells his goods to a super stockiest or area distributor so can also be under the B2B model.
2. B2C (Business to consumer):
This is a simple model of E-Commerce that relates the business to consumer transactions. Selling of products or services by the Business to the consumer will come under this model. For example, if you buy a cosmetic product in the online shop (it may be a local or global) is a B2C model.
A consumer buys an insurance plan from an insurance company is also called B2C model of E-Commerce.
If an Annual Maintenance Contract is done for a service to a consumer through online, it is also a B2C model of E-Commerce.
3. C2B (Consumer to Business):
This model of E-Commerce deals with the business between the consumer and business. If a consumer sells his hand- made crafts, stitching works or gives permits for using his intellectual properties like his musical tunes or photographs or garment designs to a business, then it is called Customer to Business (C2B) model of E-Commerce.
4. Consumer to Consumer (C2C)
C2C model of E-Commerce is the trading among the consumers. If a consumer sells his old and used musical instruments like a guitar or his antique products through online, to another consumer – the transaction refers the C2C model of E-Commerce.
If a consumer sells his old bike online to another customer who wants to buy an old bike online, then such a business is also called as C2C (Consumer to consumer) model of E-Commerce.
The famous sites like Quikr and OLX are the best examples of this model.
E-Commerce also has furthermore models of business:
The transactions between the government sector and consumer and the transactions among business and government are furthermore types in E-Commerce.
5. G2B (Government to business):
The contracts and any other services outsourced to a business are said to be G2B (Government to Business) type of E-Commerce.If any online tenders or auctions are conducted by a government department and the business takes part in it, then such type is called G2B (Government to Business) of E-Commerce.
6. B2G (Business to Government):
If a business makes applications for any licensing, approvals and permits to the government department, such transaction is called B2G (Business to Government) type of E-Commerce.
7. G2C (Government to Consumer):
The public welfare schemes, public information, services provided to the consumer by the government sectors online refer to this type of E-Commerce.
If a Consumer gets services from government body like marriage certificates, land certificates, birth/death certificates, and mutation records online from the government sites, then the transaction is called G2C (Government to Consumer) type of E-Commerce.
8. C2G (Consumer to Government):
The tax paid by the consumer to the government online, then the transaction comes under C2G (Consumer to Government) type of E-Commerce
The most common types of E-Commerce websites:
The E-Commerce websites, based on their based on the common functions, can be classified into the following types.
9. Products based on E-Commerce Websites:
The E-Commerce websites, dealing with the buying and selling of physical products will come under this type. Hosting an online store for selling his physical products online, the retailer gains a global reach for his business and huge improvements.
10. E-Commerce sites for Service:
In the digital world, many online training courses, counseling, consultations, and freelancing services are being done online as a business. The E-Commerce website that allows the service-oriented online transactions will come under this type.
A leading lawyer can charge for his consultations as a service, by online-chats or by emails to the client who needs the legal opinion as a service.
11. E-Commerce Websites for Digital Products:
If a software developer, sells his digital products, it may be accounting software or POS software to a retailer, there will not be any physical products are dealt with the trading, and such E-Commerce websites allow this kind of transaction will come under this type.
A musical company’s sale of a music album, or a video- game sales done in E-Commerce website can also be categorized in this type of E-Commerce website.
12. E-Commerce websites doing Drop shipping:
The other type of E Commerce business is booming now, and it is nothing but drop shipping. It slightly differs from the selling of products online by direct
involvement of a supplier with the customer. But here, the online store receives the order from the customer, it finds the supplier and let them ship the products directly to the customer end from their warehouses. The online store buys the product at a wholesale rate from the supplier and sells it with a margin without making stock and inventory.