Types of E Commerce will be discussed in this article. E-commerce is a concept in business that enables buyers and sellers of goods to transact online. There are many different e-commerce company models, and it’s now easier than ever for creative founders to use the internet to realise their ideas. You should use e-commerce to expand your business online if you have creative concepts or ideas that you believe can affect or transform the lives of others.
What are the Types of E Commerce Complete Guide
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Nowadays, many types of e-commerce are billion-dollar industries because consumers prefer to shop online due to rising internet usage and smartphone adoption. Have You Heard? Global eMarketer Insider Intelligence predicts that by 2025, global e-commerce sales will reach $7 billion USD.
What is E-commerce?
The term “e-commerce,” often known as “electronic commerce,” describes the exchange of products and services over the internet.
E-commerce enterprises allow clients to browse, choose, and buy goods or services from the comfort of their homes. They often operate online through a website or an online marketplace.
E-commerce has transformed how businesses run and made it simpler for customers to shop and make purchases.
Additionally, it has given firms new chances to expand into international markets and run more effectively by utilising digital technologies.
Types of E-Commerce
Depending on the character of the goods or services being offered, the business model being employed, and the interaction between the company and the customer, there are numerous different types of e-commerce.
Among the popular types of e-commerce are:
- B2C (Business-to-Consumer): This describes online interactions between companies and specific customers.
One typical instance of B2C e-commerce is online retail.
- B2B (Business-to-Business): B2B refers to online business-to-business transactions like the purchase of supplies or the sale of wholesale items.
- C2C (Consumer-to-Consumer): e-commerce refers to business done between individuals, such as on websites like eBay or Etsy.
- C2B (Consumer-to-Business): refers to online business-to-business exchanges in which private parties exchange goods or services, as in the case of freelance employment or the sale of content via a website like Patreon.
- B2G (Business-to-Government): refers to online transactions between businesses and government organisations, such as when the latter buys goods or services from the former.
The nature of the goods or benefits being offered, as well as the interaction between the company and the customer, will ultimately determine the type of e-commerce that is carried out.
B2B (Business to Business)
B2B refers to business-to-business transactions that take place between two companies in the supply chain, such as ordering inventory or outsourcing production or distribution.
A typical supply chain involves frequent commercial transactions as companies purchase components and items, such as raw materials, for use in manufacturing.
After that, corporations and individuals can buy and sell finished goods.
Businesses can use e-procurement interfaces to begin procurement procedures and conduct product and service searches on online marketplaces. Also check Ecommerce Software
B2B2C (Business to Business to Consumer)
The goal of the B2B2C business strategy is to expand into new markets and draw in new customers by partnering with businesses that provide goods and services to consumers.
A company that is developing a product, service, or solution works with another company to use a certain service, such as an e-commerce website, portal, or blog.
Together, the two companies promote products, services, and/or solutions that are advantageous to both.
B2G (Business to Government)
The term “business-to-government,” or “B2G,” describes the link between a corporation and institutions and agencies of the government.
Businesses are said to use the B2G sales model when selling products, services, or information to governments or government agencies (such as Union, state, or local).
It should be noted that the B2G e-commerce model and the B2A model share the same definition (business to administration).
Both abbreviations refer to companies that specialise in supplying the government with goods and services.
C2B (Consumer to Business)
In the C2B model, customers gain from flexibility, direct payment, free or reduced goods and services, and businesses profit from customers’ willingness to establish their own prices, supply data, or engage in marketing on the company’s behalf. Also check Yotpo Review
C2B business ideas include scenarios where a customer provides a company the chance to sell its items on the customer’s blog in exchange for a fee and reverse auctions, in which customers decide the price for a good or service they want to buy.
D2C (Direct to Consumer)
The manufacturer sells the outcomes directly to the customer under the D2C model, doing away with the necessity for a distributor, retailer, etc. as would be necessary in a conventional distribution channel.
In this manner, both the firm and the consumer profit from the reduced cost of the lengthy distribution channel.
Manufacturers who wished to start selling directly to consumers would have to start selling individual items as the typical retailer business model revolves around buying in bulk.
Since their entire company is dependent on acquiring and disposing of enormous quantities of goods, this is essentially the reason why the majority of manufacturers have not yet switched to a direct-to-consumer (D2C) strategy.
C2C (Consumer to Customer): C2C business concepts enable customers to transact with one another, typically online.
Two common C2C markets are auctions and classified advertisements.
C2C marketing has gained popularity as a result of the growth of the internet & the creation of companies like eBay and Olx, among others.
Customers gain from product competition and frequently discover goods or goods that are difficult to get elsewhere.
Furthermore, since there are no merchants or wholesalers, margins for sellers could be higher than they would be with more traditional pricing tactics.
Value Delivery Method for E-Commerce
The value delivery technique or method is the product design approach that maximises value for users.
If your business model is the car, then your value delivery approach is the engine.
Here are some of the delivery techniques employed by market disruptors and industry leaders:
White Label
White labelling is the process by which a business develops a product or acquires one from a third-party distributor and brand and sells it under its own name and label.
In addition to lowering manufacturing costs, this can improve brand recognition.
White labelling is widespread in sectors with high levels of imitation, such as fashion and cosmetics.
Private Label
Private label refers to a good that is made by a different company but is sold under the retailer’s own brand name.
The merchant is in charge of every aspect of the goods or items.
That also includes all other details, such as the product’s package and characteristics.
After then, the retailer receives privately branded goods to sell.
They are the company’s own brand products, appearing to have been created by the brand itself.
Wholesaling
You can provide your products in bulk and at a discount to other companies, thus serving as the middleman between the manufacturer & the distributor or retailer, rather than selling them individually to customers through a B2B e-commerce model.
When a store employs a wholesale strategy, its products are sometimes offered at a significant discount.
Conclusion
E-commerce is not a brand-new type of business.
It has stood around for a while, but due to a number of advantages such low cost and no need for a physical workspace, it has recently become the most preferred method of conducting business (can be managed from home).
Another aspect that has increased online sales is rising internet penetration.
Nowadays, consumers enjoy making purchases online.
Like Amazon or Flipkart, many multinational corporations rely on the internet as part of their business model.
You should go online as a business owner since it expands your operation’s geographic reach without requiring you to spend excessive money on the purchase of physical assets.
For the most recent information on micro, small, and medium-sized enterprises (MSMEs), business advice, income tax, GST, salaries, and accounting, check out Khatabook.
What is a private label, exactly?
Ans:
Private label refers to a good that is made by a different company but is sold under the retailer’s own brand name.
The merchant is in charge of every aspect of the goods or items.
That also includes all other details, such as the product’s package and characteristics.
After then, the retailer receives privately branded goods to sell.
They are the company’s own brand products, appearing to have been created by the brand itself.
What different business models are there for e-commerce?
Ans:
The following are the most popular e-commerce business models, depending on the goods and the kind of market you wish to enter:
Wholesaling under a White Label Private Label
What other types of e-commerce are there?
Ans:
The several types of e-commerce covered in this blog are as follows:
Business to Consumer (B2C)
B2B (Business to Business) (Business to Business)
B2B2C (Business to Business to Consumer) (Business to Business to Consumer)
B2G (Business to Government) (Business to Government)
C2B (Consumer to Business) (Consumer to Business)
D2C (Direct to Consumer) (Direct to Consumer)
C2C (Consumer to Consumer) (Consumer to Consumer)
What is electronic commerce?
Ans:
E-commerce is a concept in business that enables buyers and sellers of goods to transact online.
There are many different e-commerce company models, and it’s now easier than ever for creative founders to use the internet to realise their ideas.
if you have creative notions or suggestions that you believe could affect or change the lives of others.
You should use e-commerce to expand your firm online.