Electronic Commerce: Classes of E-com
Electronic Commerce: Classes of E-com
Generally speaking, when we think of e-commerce, we think of an online commercial transaction between a supplier and a client. However, and although this idea is right, we can be more specific and actually divide e-commerce into six major types, all with different characteristics.
Earlier article: Electronic Commerce: Risks of Implementation
Let's begin the discussion with B2B e-commerce.
Business-to-Business (B2B) e-Commerce
B2B refers to the exchange of services, information and/or products from one business to another. B2B electronic commerce typically takes the form of automated processes between trading partners and is performed in much higher volumes than Business-to- Consumer (B2C) applications. B2B can also encompass marketing activities between businesses, and not just the final transactions that result from marketing.
Business-to-Consumer (B2C) e-Commerce
It is defined as the exchange of services, information and/or products from a business to a consumer, as opposed to between one business and another. Typically, a B2C e-Commerce business has a virtual store front for consumers to purchase goods and services eliminating the need to physically view or pick up the merchandise.
The Business-to-Consumer (B2C) model can save time and money by doing business electronically but customers must be provided with safe and secure as well as easy-touse and convenient options when it comes to paying for merchandise. This minimizes internal costs created by inefficient and ineffective supply chains and creates reduces end prices for the customers. This could be beneficial especially if we are in the business of commodity-like products where we must be innovative and accommodating to gain and retain customers.
Advantages of B2C E-Commerce include:
(i) Shopping can be faster and more convenient.
(ii) Offerings and prices can change instantaneously.
(iii) Call centers can be integrated with the website.
(iv) Broadband telecommunications will enhance the buying experience.
C. Consumer-to-Business (C2B) e-Commerce
In C2B e-Commerce model, consumers directly contact with business vendors by posting their project work online so that the needy companies review it and contact the consumer directly with bid. The consumer reviews all the bids and selects the company for further processing. Some examples are guru.com, rentacoder.com, getacoder.com, freelancer.com.
D. Consumer-to-Consumer (C2C) e-Commerce
C2C e-Commerce is an Internet-facilitated form of commerce that has existed for the span of history in the form of barter, flea markets, swap meets, yard sales and the like. C2C e-Commerce sites provide a virtual environment in which consumers can sell to one another through a third-party intermediary.
E. Business-to-Government (B2G) e-Commerce
B2G e-Commerce, also known as e-Government, refers to the use of information and communication technologies to build and strengthen relationships between government and employees, citizens, businesses, non-profit organizations, and other government agencies.
F. Business-to-Employee (B2E) e-Commerce
B2E e-Commerce, from an intra-organizational perspective, has provided the means for a business to offer online products and services to its employees.
Well, that's all on the classes of E-com. We shall continue the discussion with the Key aspects to be considered in implementing E-com in the business processes.
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