Types of E-Commerce

December 14th, 2013 by Digithales

Business to Consumer (B2C)

Business to consumer e-commerce consists of any transactions that take place between companies and consumers. It is the earliest form of e-commerce and currently the second largest. Some elements involved in B2C e-commerce are:

  • Information gathering
  • Purchasing of physical goods, such as consumer products, or information goods, such as digital content including software and e-books
  • Receiving of purchased products

Business to Business (B2B)

Business to business e-commerce takes place between companies and deals with relationships between and among organisations. It is made up primarily of two components: e-frastructure and e-markets. Currently, B2B e-commerce consists of about 80 percent of all e-commerce transactions, and most experts predict that it shall continue growing faster than the B2C segment.

Business to Government (B2G)

Business to government e-commerce consists of any commerce between companies and the public sector. It is based around two presuppositions: firstly that the public sector takes a leading role in establishing e-commerce and secondly that the public sector has the greatest need for making the procurement system more effective. Currently, the B2G market is reasonably insignificant as government e-procurement systems remain undeveloped. However, in the future, the Internet may be used further for public procurement, licensing procedures, and other government-related operations; for instance, web-based purchasing policies can increase the transparency of the procurement process and reduce the risk of irregularities.

Consumer to Consumer (C2C)

Consumer to consumer e-commerce takes place between private individuals or consumers through electronic marketplaces and online auctions, which allow consumers to bid for products offered by multiple suppliers. C2C e-commerce is considered the type with the greatest potential for developing new markets.

Mobile Commerce (m-commerce)

The newest form of e-commerce is mobile commerce, where goods and services are bought and sold through wireless technology on handheld devices such as smartphones and tablets. As content delivery over wireless devices increases in speed and becomes more secure and scalable, some experts believe this form of e-commerce will even surpass wireline commerce as the method of choice for digital transactions. This would be especially true for Asia-Pacific (Japan is currently the global leader in m-commerce), where there are more mobile phone users than Internet users.