The Four Different Types of Ecommerce Business
Saturday, November 23, 2013
Ecommerce business is the process of selling, buying, and exchanging of products and services online. Most corporations and organizations find online marketing as an effective way of developing their business as it allows them to transact business with a wide audience. There are two most common participants in ecommerce: the business and the consumer. From these two participants, we can come up with four primary types of ecommerce: B2B, B2C, C2B, and C2C. It is important to understand these types because it will give you an insight as to which category you are in or where you want to be. To give you a brief analysis about these categories, then continue reading.
1. B2B (Business-to-Business Ecommerce)
The participants in this type of ecommerce are both business entities. Both companies transact with each other like having a manufacturer who sells products to wholesalers and distributors, or wholesalers who sell products to retailers. B2B ecommerce usually involve huge transactions which involve large volumes of purchase and may result to bigger value of products or services. However, in this form of business, the price can be negotiable depending on the quantity of order.
2. B2C (Business-to-Consumer Ecommerce)
This type of ecommerce typically involves the business and consumer as participants and generally, the most common form of ecommerce. This is the selling of goods and services to the public or consumers through the shopping cart software. This allows the users to reduce the need for physical stores when they have to buy something. With B2C ecommerce, a user can easily purchase many things all at the same time without the hassle of having to visit multiple stores to look for different items. With ecommerce, all they have to do is search the internet for the desired products and have these items delivered right away. They can even choose their preferred method of payment, like using cards or paying upon delivery.
3. C2B (Consumer-to-Business Ecommerce)
C2B is a type of ecommerce business which also involves a consumer and a business. However, this type may seem lopsided since it is the business who bids for the consumer. To best explain this, an example would be a job board wherein the consumer places his qualifications and requirements, and then various companies review this posting and make offers. Another example is when a consumer posts a project online and businesses bid on it after reviewing this project. The consumer will then choose the company that best suits his requirements.
4. C2C (Consumer-to-Consumer Ecommerce)
C2C ecommerce is another type of ecommerce which facilitates online transactions between two consumers. This involves buying and selling of goods and services between consumers through an online auction. Here, a certain consumer posts some products for sale on the internet and other consumers bid to purchase them. Thus, the highest bidder within the allotted time will get to buy the product. This form of transaction is made possible because of the many sites which offer free classified ads, forums and auctions where consumers can buy and sell items to other consumers.
Whether you're a business owner or a consumer, it is essential that you know these different ecommerce business types. This will not only give you different options when doing online marketing, this will also allow you to identify the transactions you're involved in.
Tags:
Marketing, Social Marketing
1. B2B (Business-to-Business Ecommerce)
The participants in this type of ecommerce are both business entities. Both companies transact with each other like having a manufacturer who sells products to wholesalers and distributors, or wholesalers who sell products to retailers. B2B ecommerce usually involve huge transactions which involve large volumes of purchase and may result to bigger value of products or services. However, in this form of business, the price can be negotiable depending on the quantity of order.
2. B2C (Business-to-Consumer Ecommerce)
This type of ecommerce typically involves the business and consumer as participants and generally, the most common form of ecommerce. This is the selling of goods and services to the public or consumers through the shopping cart software. This allows the users to reduce the need for physical stores when they have to buy something. With B2C ecommerce, a user can easily purchase many things all at the same time without the hassle of having to visit multiple stores to look for different items. With ecommerce, all they have to do is search the internet for the desired products and have these items delivered right away. They can even choose their preferred method of payment, like using cards or paying upon delivery.
3. C2B (Consumer-to-Business Ecommerce)
C2B is a type of ecommerce business which also involves a consumer and a business. However, this type may seem lopsided since it is the business who bids for the consumer. To best explain this, an example would be a job board wherein the consumer places his qualifications and requirements, and then various companies review this posting and make offers. Another example is when a consumer posts a project online and businesses bid on it after reviewing this project. The consumer will then choose the company that best suits his requirements.
4. C2C (Consumer-to-Consumer Ecommerce)
C2C ecommerce is another type of ecommerce which facilitates online transactions between two consumers. This involves buying and selling of goods and services between consumers through an online auction. Here, a certain consumer posts some products for sale on the internet and other consumers bid to purchase them. Thus, the highest bidder within the allotted time will get to buy the product. This form of transaction is made possible because of the many sites which offer free classified ads, forums and auctions where consumers can buy and sell items to other consumers.
Whether you're a business owner or a consumer, it is essential that you know these different ecommerce business types. This will not only give you different options when doing online marketing, this will also allow you to identify the transactions you're involved in.
