Most people consider E-commerce or electronic commerce as just the commercial transaction of products or services using the internet. No wonder, this type of transaction is also known as internet commerce. Even though the concept is right, e-commerce is way more than this. In fact, the whole transaction process can be divided into 6 types. Note that each of these internet commerce types features its own unique characteristics. In order to give you an in-depth idea regarding the same, below is a detailed list of all those e-commerce subtypes.
Business-to-business or B2B sales can be defined as the electronic transactions of goods and services carried out between different companies rather than between companies and customers. Hence, it got the name. Usually, traditional business wholesalers and producers tend to do their business this way. It is to be noted that it is extremely challenging and hard to close B2B sales since you are dealing with experts in this case. To nail the task, you will require a dedicated sales team and a strategic sales process since the dollar value will be higher and the sales cycle will be relatively longer in this case.
This is one of the most common types of e-commerce and everyone will be familiar with this. When it comes to B2C electronics sales, the goods and services are supplied by companies to their end-users or clients, as the name indicates. Traditional retail businesses usually operate this way. In this case, it will not be that challenging to close a deal since every end user will not be an expert and a talented salesperson will be able to convince them to invest in your products or goods easily.
At the same time, B2C sales tend to be a discontinued and sporadic process as well. Furthermore, the main reason for the giant popularity and growth of this ecommerce is the digital advancements. Note that you can find a vast range of virtual malls and stores on the internet that sells different consumer products such as digital publications, software, computer, books, food, shoes, financial products, cars, and whatnot.
When compared to traditional retail goods, customers will be equipped with more information in the case of ecommerce and also the chances for you to get products at cheaper rates are higher in this case. Other perks of electronic commerce include personalized and better customer service, speedy delivery, and quick processing.
As the name indicates, the online commercial transaction of goods and services is carried out between consumers in this case. Generally, C2C commerce is conducted through an external entity or a third party. This third party offers a platform for consumers to sell and buy different products and services.
When it comes to C2B ecommerce, you can see a reversal of the traditional style of exchanging services and goods. Note that the products are sold by the consumers to different companies in this case. Usually, consumer-to-business sales are commonly used in projects that are based on crowdsourcing. A huge number of individuals design goods and services and make it available for purchase for multiple companies seeking their requirements.
For instance, consider a website on which multiple designers post their designed logos for a company and one of them is selected and is purchased by the company. Another common example of the C2B ecommerce platformsinclude online markets that sell royalty-free photos, images, design elements, media, etc.
Business-to-administration or B2A involved all the online commercial transactions that are carried out between companies and public administration. This type of business usually features a significantly large amount and variety of services, especially in fields such as social security, fiscal, legal documents, employment, registers, etc. Since the investment made in e-government has increased phenomenally over the last few years, B2A sales as well have flourished considerably.
When it comes to consumer-to-administration or C2A sales, it involves all the online commercial transactions carried out between end-users and public administration. Like B2A, C2A is also designed in a way to provide different services to the citizens of the country that are effective and easily usable. The whole process is carried out with the support of ICT (Information and Communication Technologies). Some of the common examples of C2A sales are listed below.
- Education – distance learning, disseminating information, etc.
- Health – information about multiple physical health conditions, appointments, payment of health assistance, etc.
- Taxes – payments, filing tax returns, etc.
- Social security – through making payments, the distribution of information, and more
Pros and Cons of Ecommerce
While ecommerce can be a boon for some consumers and retailers, it can be an issue for some. Hence, it is always recommended to do a thorough pro-con comparison of the same before entering the field. Below are some of those significant points that you must note in this case.
- Ability to reach out to the maximum number of prospects without a huge financial investment
- Direct interaction with the end-users
- Not limited by locations or markets
- Increased competitiveness and productivity
- Consumers can purchase goods and services at relatively cheaper rates
- Strongly reliable on ICT
- Customers will not be able to try or touch the products before purchasing it
- Insecurity caused by online business transactions
- The loss of economic and cultural identity of users