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E-commerce types
E-commerce types represent a range of various schemas of transactions which are distinguished according to their participants. Usually E-commerce is divided into three general most well-known types, but the notion is much wider. This article is a try to summarize all E-commerce types.
Schema 1: B2B or Business to Business is considered as one of the most perspective and extensively developing E-commerce trend nowadays. It refers to electronic commerce between businesses and also supplies chain technology, which is the largest and most successful e-commerce technology nowadays. The parties of B2B schema are "Business Partners". Internet platforms give an opportunity to considerably simplify all steps of the operations, make the trade more immediate. An example of a schema B2B is selling site templates to companies for using as a design base, besides any other interactions involving bulk deliveries are included. B2B means an established working relationship therefore it is a better solution to deliver comparing to B2C, although it needs to link together two complex accounting systems.
Schema 2:B2C or Business to Consumer has lately gained a big popularity due to simplified and accelerated way to buy products. Business to Consumer refers to selling and buying of goods and services via the web. The parties are: a company (a web retailer) who trades to an individual (a web customer). Retail trading (via online shops) is the most well-know example of such a type of transactions allowing consumers to purchase by lower prices and with more convenience. The disadvantages of B2C E-Commerce type are selling to un-trusted strangers and extra effort to get customer and payment information. However, B2C almost always involves a customer typing information into an order screen therefore it is a better solution to provide comparing to B2B.
Schema 3: C2B or Consumer to Business is growing trend where consumers demand specific products or services from respective businesses by presenting themselves as a buyer group. Example of this type is contacting a tour and travel operator via their website for purchasing a holiday package as well as such sites as CTB and SpeakOut.com. These sites provide consumers with market strategies. They are also used by businesses to gain insight into consumer wants.
Schema 4: С2C or Consumer to Consumer refers to online dealing of good and services between people. The parties are two consumers (individuals). This type of transaction is fulfilled due to online market dealer like auction sites, becoming more and more popular nowadays (for example eBay).
Schema 5: P2P or Peer to Peer is sometimes unified with E-commerce type C2C because of the same parties participating in the transaction. Though it is distinguished by the process itself. P2P is not only an E-commerce type but also a technology that allows people to share computer files and computer resources without going through a central web server. The required software should be installed by both sides so that they can communicate on the common platform. As from the beginning this type of e-commerce has been launched to the free usage, it has quite low revenue. It consists in mutual help of consumers. Disadvantages: this model of transaction often entangles cyber laws.
Schema 6: B2E or Business to Employee refers to using an intrabusiness network which allows companies to provide products and/or services to their employees. B2E networks are usually used to automate employee-related corporate processes. As to the parties in this schema it focuses on the the employee, rather than the consumer. The examples of B2E are: online insurance policy management, corporate announcement dissemination, online supply requests, special employee offers, employee benefits reporting, management. The disadvantages of B2E technologies consists in reducing the administrative burdens with the human resources department.
Schema 7: B2M or Business to Machines is a fast developing area within E-commerce allowing companies to link to remote machines via the internet. B2M technology allows the company to monitor their machines from a far; determine if they need repair or restocking; know exactly how many products are in each delivering machine by type of the product etc. The parties here are business (some employee who controls the process), computer program and machines.
Schema 8: B2M or Business to Manager represents a kind of brand-new mode of electronic business. But this mode has essential difference from above mentioned. The parties are: enterprises or products sellers or other worker, not consumers themselves and professional manager who earns commission by providing services for enterprises. For example enterprises release their products or services through the Internet. Professional managers find out the information about these products or services on the net, and provide products selling or enterprises services. B2M advantages: it can bring online commodities and service to below-the-line.
Schema 9: M2C or Manager to Consumer is an extension of B2M schema as well as self-developing trend. M2C doesn’t target at final consumers, while M2C faces consumers not companies. Managers sells products to consumers, similar to the C2C, but not completely. C2C is a traditional profit schema, whose earning is the price difference of the offered goods. As for the profit models of M2C they are abundant and flexible; they can be both the price difference and commission. M2C’s logistics management mode can be also more diverse than C2C, such as zero inventories; and cash flow has more advantages than traditional C2C.
Schema 10: G2X - X2G Apart from mentioned above schemas there are other examples, including all types of transaction with the participation of government and its institutions such as online bill payments, wire payment to another country, buying stocks, business registrations, renewing licenses etc.
- B2G stands for Business-to-Government (also known as B2A or Business to Administration);
- C2G stands for Citizen (Consumer)-to-Government (C2A or Consumer to Administration);
- G2C stands for Government-to-Citizen;
- G2G stands for Government-to-Government;
- G2E stands for Government-to-Employee;
- G2B stands for Government-to-Business;
- and others.
E-commerce is a developing part of E-business, it is constantly evolving and today we are already talking about M-commerce which actually isn't distinguished by the parties participating in the transaction but by the way to make it.
M-Commerce refers to the use of mobile devices such as a mobile phone, a Personal digital assistantPDA, a smartphone, or other emerging mobile equipment such as dashtop mobile devices for conducting the transactions. Inside M-commerce there are different types of transactions as well: for example the mobile device holders can contact each other and can conduct the business. M-commerce is becoming so popular that the web design and development companies have to optimize the websites to be viewed correctly on mobile devices.
In conclusion: this article was to describe as many types of transactions via electronic networks as possible, but it's worth noting that it is not necessary that all these models are dedicatedly followed in all the online business types. It may be the case that a business is using all the models or only one of them or some of them as per its needs.
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