E-commerce or e-commerce are transactions or other terms of sale conducted electronically. It involves the buying, selling, and exchanging of goods or services for money using computer networks such as the Internet. Contrary to popular belief, e-commerce does not only exist on the web. In fact, e-commerce already existed and has been doing well in business-to-business transactions since the 1970s via EDI (electronic data interchange) via VANs (value-added networks). E-commerce can be divided into four main categories B2B, B2C, C2B and C2C.
• B2B (business to business)
B2B definitely deals with companies that do business with each other. An example of this is manufacturers selling their product to distributors, and wholesalers selling it to retailers. So pricing can be based on the number of orders and is often up for grabs.
• B2C (business to consumer)
Business-to-consumer typically involves selling products and services to the general public or consumers through the use of catalogs using shopping cart software. B2B can easily make a lot of money; on the other hand, B2C is what is really on an average customer’s mind when it comes to e-commerce as a whole. With the help of e-commerce, you can easily buy many things at once without having human interaction. An example of these is if you’re struggling to find a book, when you need to buy a high-end custom computer system, or find a first-class all-inclusive trip to a tropical island paradise. So e-commerce can help you buy all the products at the same time.
• C2B (Consumer to Business)
An example of C2B is when a consumer posts their projects or assignments on the internet and on a website. The consumer makes a budget online where within hours many companies review the requirements the consumer needs and then bid on the project. It empowers clients worldwide by providing the meeting ground and platform for that particular transaction.
• C2C (consumer to consumer)
A very good example of C2C is eBay. This is where consumers sell their products to other consumers through auctions. Thus, whoever bids the most can buy the product. Another example is sites with free classified ads, auctions, and forums where consumers can buy and sell products to other consumers. They use PayPal as an online payment system tool where they can easily send and receive money online.
There is another form of e-commerce which is B2E or Business-to-Employee e-commerce. Here, companies use internal networks to offer their employees online products and services. It may not necessarily be online on the web.
Other forms of e-commerce are G2G (Government-to-Government), G2E (Government-to-Employee), G2B (Government-to-Business), B2G (Business-to Government), G2C (Government-to-Citizen ) , C2G (Citizen-Government). These transactions primarily involve with the government, from procurement to tax filing to business registration to license renewal. There are still many other categories, but they tend to be superfluous.