E-Commerce

 

E-Commerce, or electronic commerce, is the buying and selling of goods or services electronically on the internet.

E-Commerce business has six basic models

1.    Business to business (B2B)

Business to business, or B2B, is the largest of all six e-commerce models. With B2B, both the buyer and the seller are companies or businesses. This model includes transactions between a manufacturer and a wholesaler or a retailer and a wholesaler. These transactions are often much higher than those of the business to consumer model. B2B includes some of the largest online businesses in the world.

B2B model benefits:

a)      Determine suppliers and buyers

b)     Encourages online businesses

c)      Position trade guides

d)     Products of export and import

B2B model features:

a)      Multiple user IDs and users

b)     Each sale produces more revenue

c)      Trade channel focused with niche marketing strategies

d)     Complex target market and model

e)     More data demanded by customers

f)       Less impulse and emotional purchases

g)      Less price sensitivity

h)     Longer sales cycles

2.    B2C (Business to consumer)

Business to consumer, or B2C, is the most common of all six e-commerce models and has the biggest online presence. With B2C, the seller is a business and the buyer is an individual customer, making it the most traditional model for selling goods except that the sale occurs online instead of in a physical store. This model allows business to interact directly with their customers, which helps marketers and retailers to sell their goods to customers on the internet. B2C includes stores like supermarkets, clothing stores, toy stores and other major retailers.

B2C model benefits:

a)      Less expensive electronic transactions

b)     Marketplace expansion to global proportions

c)      Stronger customer loyalty

d)     Niche marketing expansion opportunities

B2C model features:

a)      Customer who are price sensitive

b)     More impulse and emotional purchases

c)      Target market is clear

d)     Model is easy to understand

e)     Mass media marketing strategies for consumers

f)       Lower costs of entry and risks

g)      Shorter sales cycles

3.    Business to government (B2G)

Business to government, or B2G, promotes the most efficiency of all six e-commerce models. Also called business to administration commerce, the B2G model uses central websites where businesses and governments can complete transactions more efficiently than through other models. With B2G, businesses can market products and services to many levels of government, known as public sector marketing. This platform allows businesses to bid on tenders auctions, application submissions and other government projects and opportunities.

B2G model benefits:

a)      Solid transaction since the government can't go bankrupt

b)     Guaranteed payment for products or services

c)      Easy to start providing quotes

d)     High profit margin

e)     Longevity

f)       Tax benefits

g)      Increased flexibility

B2G model features:

a)      Competitive market

b)     Contracts awarded to the lowest bidder

c)      Low margin sales

d)     Intensive documentation

e)     RFID and bar codes on every label

f)       Large initial capital

g)      Geographic limitations

4.    Consumer to consumer (C2C)

Consumer to consumer, or C2C, is the easiest to understand of all six e-commerce models. With C2C, both the buyer and the seller are consumers who complete a transaction. It takes extensive marketing and planning to create a C2C website and online business. An example of C2C is when a third party online auction website facilitates one customer listing an item for sale and another customer bidding on or purchasing the item. The third party typically gets a fee or commission from the customer for facilitating the transaction, but they don't check and aren't responsible for product quality.

C2C model benefits:

a)      Wide reach

b)     Low transaction costs

c)      Available at all times of day or night

d)     No intermediary

e)     Increased profitability

f)       Larger customer base

C2C model features:

a)      Some impulse and emotional purchases

b)     Ability to negotiate market-bases prices

c)      Buying process is simple

5.      C2B (consumer to business)

Consumer to business, or C2B, is growing faster as people love to work at their own terms and conditions. With C2B, the seller is an individual consumer and the buyer is a business or company. Consumers offer products or services to businesses in exchange for payment. This model is reverse to the traditional B2C (Business to Consumer) e-commerce model, where businesses sell products or services to consumers.

 The C2B model is used by the independent workers and freelancers who accomplish paid tasks provided by the business or company. freelancers are people who offer their services or products on a website specifically created for the purpose of C2B e-commerce. A business

The platform is sometimes a third party that charges a commission or fee for connecting the sellers with the businesses.

Examples of consumer to business

a)      A freelancer displaying his computer skills on a website designed for C2B model.

b)     Service providers who work online like content creators, social media managers, programmers or brand managers.

c)      A photographer sells his images on e-commerce websites for selling.

d)     Social media users who fill in survey or promote products and services.

Benefits of C2B model

a)      Flexibility in choosing work, price, duration etc.

b)     Cost cutting in travel and meeting.

c)      More freedom and flexibility for freelancers.

d)     Less geographical limitations for providing their services.

e)     Freelancers need not to pay for costly business setup.

6.    Consumer to government (C2G)

Consumer to government, or C2G, provides the most feedback of of all six e-commerce models. Also called consumer to administration commerce, the C2G model enables consumers to request information or give feedback about public sectors. The request or feedback goes straight to the appropriate authority or government administration. An example of C2G e-commerce includes making online payments through a government website for things like electricity, health insurance or taxes.

C2G model benefits:

a)      Builds relationship between citizens and government

b)     Way to communicate with public sectors

c)      Efficient and effective transactions

d)     Gives public administration flexibility

e)     Encourages public knowledge of technology

C2G model features:

a)      Third party contracts

b)     Electronic voting applications

c)      Information sharing platform for citizens

d)     Introduction of electronic portals

e)     Eases paper operations and burdens