The 5 types of electronic commerce

May 06 , 2020

The 5 types of electronic commerce

Electronic commerce or e-commerce is a broad term that encompasses any transaction made by electronic means: from the use of credit cards, to online stores, electronic commerce is the present and the collective future of humanity.

Precisely within this broad umbrella there are five general categories of online business / profitable online activities that are classified according to the environment, participants, characteristics, advantages and disadvantages of each one of them. Let's explore what profitability, advantages and facilities each of these five types offers us, and what online businesses we can establish with them!!

Types of e-commerce:

  1. B2B e-commerce
  2. B2C e-commerce
  3. B2E e-commerce
  4. C2C e-commerce
  5. G2C e-commerce

1.B2B e-commerce

B2B is short for business to business (business to business), and is one where the commercial transaction is only carried out between companies that operate on the Internet, which means that consumers do not intervene. This type of electronic commerce is carried out between online businesses and is usually very common when the online store sells wholesale or distributes components or raw materials, which will later be used by other industries.There are three modalities:

  • The controlled market that only accepts sellers looking for buyers.
  • The market in which the buyer seeks suppliers.
  • The market in which intermediaries seek to generate a commercial agreement between sellers and buyers.

In order to participate in this type of electronic commerce,it is highly recommended that you have experience in the market. The relationship between the two online companies,Obviously its main objective will be to sell the parts, raw materials and services that will help the consumer to obtain the final product or service they want, but that is another type that we will talk about later.

E-commerce at this level reduces errors that may appear, and increases efficiency in the sale and business relationship.

2. B2C e-commerce

This is the type of e-commerce, also known asbusiness to consumer, is the best known and it is the one that most online stores use. It is the one that takes place between the online business or,in this case virtual store, and a person interested in buying a product or acquiring a service. So if you have your online store and loyal customers who buy your products, you belong to this type. The most notable advantages are:

  • The customer can access the online store from anywhere through an electronic device, which facilitates a convenient and fast purchase.
  • Offers and prices are constantly updated for the customer's convenience.
  • Customer support can be provided directly bydifferent media, such as live chat, social networks, email or Skype.Recently, live chats and live communication have become a standard, something that is increasingly required by consumers, accustomed to social networks and their live communication dynamics. Precisely for this, Shopify and Shopial have generated specific tools that will help your online store to support thesereal-time communication channels.

This is where online intermediaries participate and it includes all e-commerce platforms, including Shopial. This is mainly dealt with when companies that facilitate purchases between customers and virtual stores are integrated, in exchange for a payment. Companies make it easy for users to interact in similar areas of interest, and they also include a payment system.

3. B2E e-commerce

The business relationshipbusiness to employee (business to employee) is primarily centered between a company and its employees.This type of electronic commerce is designed for what is known as internal customers and is very common in large corporations that deal with different lines of business, wrapped up under the same parent companyiz.

A simplified way to view B2E commerce in stores that do not belong to mega-corporationsAre theoffers that the company itself can offer to its employees directly from its online store or Internet portal, withdiscountsattractions that will serve as an impetus for an improvement in job performance. This type of electronic commerce has become a novel topic among companies to motivateyour employees to compete with their performance, to achieve extra benefits.

Generally, this type of electronic commerce is manifested through sections with exclusive access control for employees, which are attached to normal online stores, those that the general public sees. The employee will have the possibility of doing internal procedures in this micro business site, which once on the network, will reach the manager. Some of its advantages are:

  • Cost and time reduction in internal activities.
  • Internal electronic commerce, with unique opportunities for employees.
  • Motivate and retain the employee with the company.
  • Inform, at the moment and online to consult at any time.

4. C2C e-commerce

When a person no longer uses a product and seeks to offer it for sale, they can use electronic commerce as a means to carry out this transaction with another consumer. This type is known as consumer to consumer.

This is an evolution of the traditional and well-known garage sales that is gaining momentum on the Internet. The final consumer acquires from the primary consumer the products that he no longer wants or needs and to which he can give a new utility at very accessible prices. The same traditional e-commerce purchase process is followed. Some of the advantages are:

  • Product reuse.
  • Shopping at lower prices and with unique offers in the middle.
  • Reach beyond a garage or patio.

It is important to note that most of the online platforms that provide these services are not considered online stores by consumers but rather they are seen, correctly, as a kind of classifieds, in which you can buy or sell products from second hand.

5. G2C e-commerce

When a municipal, state or federal government allows citizens to carry out their procedures online through a portal, the well-known commerce is carried out government to consumer, and it is considered a type of commerce since a procedure is paid and information can be accessed online at any time. Some of the advantages are:

  • Time savings.
  • Faster and safer procedures.
  • Electronic backup.
  • Lower costs.

In nations such as Spain, access to this type of service is usually linked to some digital identity authentication mechanism, such as the electronic DNI or the digital certificates of the Treasury. Without them, many of the services of the Spanish State are not accessible. Which significantly limits the effectiveness of these platforms.

Although these types of electronic commerce are not the only ones, they are the most used on a daily basis.

So you know, electronic commerce is not only online stores, it goes further and enters more complex situations, such as the internal process of a company or actions by a government towards its citizens: services and any type transaction. Even among online stores there are a thousand and one different ways of presenting an online business idea, a product or a service to the potential consumer. Obviously the most original ideas have much more profitability and become better online businesses! You have doubts about how to set up your online store or how to present your digital business ideal? ¡Take a look at these 50 great online store ideas!

¡We hope we have clearly offered you the key concepts behind e-commerce! Do you know other types of electronic commerce? Are you interested in some type of transaction, or online business model in particular? Let us know here or through our social networks and we will be delighted that our e-commerce experts talk with you about it!ecto!