E-commerce has drastically affected traditional retail shops, disrupting their usual business ways and prompting them to change the way they sell. Big companies and start-ups now use e-commerce as a way to reach their customers in a cheap and efficient method.
COVID-19 made many businesses change their way of operations and hence there was a boom in e-commerce services. But did you know there are several types of e-commerce platforms? Today, we’ll be discussing the 6 types of e-commerce platforms.
What Is E-commerce?
E-commerce or electronic commerce refers to the buying and selling of goods over the Internet. Unlike brick-and-mortar shops, the transactions and exchange of goods are conducted online. E-commerce websites can be accessed on your computer, laptops, tablets, and smartphones, making them accessible to everyone in the world.
Everything from electronic gadgets to fruits and vegetables can now be purchased through e-commerce portals. These portals can be accessed using computers, laptops, tablets, and smartphones. So, the products and services are just a click away.
Types Of E-commerce
Take a look at the 6 types of e-Commerce models:
- Business-to-Consumer (B2C): In a B2C model, the companies sell their products directly to consumers by eliminating the intermediaries. It is the most common business model used in the world and what comes into people’s mind when they hear the term ‘e-commerce’. The companies provide the customers with photos, detailed descriptions, and user reviews of the products they want to buy. The customers can browse among the products and choose the best product suitable for them. This model is highly efficient and reduces the prices of the products. Examples of the B2C model are Amazon, eBay, Walmart, Netflix, etc.
- Business-to-Business (B2B): Trades between two companies or businesses are called a B2B model. In the B2B model, companies sell goods to other companies in very large quantities. This is mostly used for goods that are needed for the manufacturing process. Companies can place orders over the other company’s website and get direct deliveries. Examples of B2B model e-commerce are ACME, Alibaba, Ferguson, etc.
- Consumer-to-Consumer (C2C): Digital marketplaces where customers can sell their products to prospective buyers are a C2C model of e-commerce. Goods can be sold at fixed prices or can be put to auction. A C2C model eliminates the need for a company and a mediator. Examples of the C2C model are eBay, Craigslist, Etsy, etc.
- Consumer-to-Business (C2B): A C2B model allows customers to sell goods or services to companies. These are usually for short periods or as a one-time sale. Freelance work, royalty-free music, photography, and graphic designing works can be considered as a C2B model.
- Business-to-Administration (B2A): Any trade that occurs between a business/organization/company and the public administration/government is considered a B2A model. Platforms where businesses can bid on government auctions and tenders are considered a B2A e-commerce model. An example of a B2A model is Accela, a government software.
- Consumer-to-Administration (C2A): C2A platforms are where the general public/customers can provide products/information directly to the government. It can also be used by customers to request information from the government. Examples of the C2A model are platforms used to file tax returns, remittance fines and fees, and portals to take appointments.
Most Popular E-commerce Site
The company Amazon is synonymous with the word ‘e-commerce’. Initially founded as an online book store, Amazon is the largest e-commerce platform in the world. The gargantuan e-commerce platform offers B2C, B2B, and C2B models of trading.
Amazon has disrupted the retail industry by offering a cheap and efficient shopping experience. Amazon is now beyond an e-commerce platform. It has opened its wings to robotics and artificial intelligence. Amazon is currently the most profitable e-commerce site in the world.
Conclusion
E-commerce has changed the way businesses are run. It bridges the gap between the manufacturing companies and the end customers, driving down the expenditure for purchasing a product. Customers worldwide have welcomed the e-commerce initiative as it offers good products at reasonable prices.
Another reason for the boom of e-commerce is that it eases the shopping experience, as it’s just a click away. Round-the-clock access to goods and services is also an added advantage. E-commerce has changed the way trades are conducted and it will continue to impact the business world.
