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Different Types of E-Commerce

Ever since the first online exchange happened nearly 25 years ago, e-commerce has exploded into one of the most main industries today. In 2018, e-commerce made up 14.3% of U.S. retail sales, up from just over 12% in 2017.

E-commerce has become so commonplace that many people may not even realize when they’re part of an e-commerce transaction.

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As a result how broad the term is, e-commerce can be hard to define. But since e-commerce is developing at a  fast movement, understanding what constitutes an e-commerce transaction is crucial for most, if not all, businesses.

What Is E-Commerce?

According to e-commerce software company, e-commerce is “the purchasing and selling of merchandise or services using the internet.” The definition also requires that a exchange of money and information take place online.

What is lost in this definition is the implication of what is not considered e-commerce. Just because a business exists online doesn’t mean they’re associated in e-commerce.

At the same time, an e-commerce exchange doesn’t require a business at all, just two parties that are completing a transaction online. E-commerce can mean anything from a retail sale to drop shipping.

To better understand e-commerce and its impact, businesses ought to learn about the different types of e-commerce.

Business-to-Business (B2B)

B2B is one of the most widely kinds of e-commerce. This is when a transaction of goods or services happens between two businesses.

B2B is perhaps the biggest types of e-commerce in the U.S., with total sales eclipsing $9 trillion in 2018. In fact, B2B is required to be double the size of B2C by 2020.

A B2B exchange could include a mining organization buying gear from a hefty hardware organization, or even a business getting gracefully chain coordinations administrations

Business-to-Consumer (B2C)

Maybe the most well-known type of e-commerce, B2C happens when a business offers a good or service to a consumer. For instance, Netflix takes part in B2C e-commerce when it sells its service to viewers. The whole exchange happens on the web. .

Goods can be bought through B2C e-commerce as well. The acquisition of a physical good off Amazon is bought a B2C transaction.

In the B2C relationship, shoppers often choose pick or services that have low prices, and research shows that purchasers value expedient and affordable shipping.

Mobile Commerce (M-Commerce)

One interesting development in online traffic has been the booming growth of cell phone use. In fact, the majority of internet use occurs on mobile phones. Unsurprisingly, this has correlated with the growth of m-commerce.

M-commerce can look like another type of e-commerce. For example, a B2C purchase that takes place on a mobile device is considered both B2C and m-commerce.

Because it incorporates other types of e-commerce, m-commerce has established itself as an e-commerce leader. In 2017, m-commerce made up 34.5% of all e-commerce. By 2021, m-commerce is expected to make up 53.9% of all e-commerce, and growth should only continue from there.

To keep up with competitors, all e-commerce businesses need to use responsive, mobile-friendly sites and checkouts. As more people go mobile, sites also need to do a better job of targeting mobile users.

Facebook Commerce (F-Commerce)

With over 3.5 billion clients around the world, the development of web-based media has changed internet business. The greatest online media webpage, Facebook, understood that it could keep its clients on location longer by offering a stage to purchase and sell merchandise and enterprises. The outcome was Facebook-trade. While F-trade alludes straightforwardly to Facebook, the term is regularly used to depict online business via web-based media locales in general.

Much like m-trade, F-business can comprise of different sorts of online business deals, for example, B2B or B2C. A deal that happens on a cell phone through Facebook would be viewed as both m-trade and F-business.

F-business doesn’t order a similar market size as different kinds of internet business, however that could be on the grounds that it’s a generally youthful turn of events. With billions of individuals checking online media, F-trade is where web based business organizations are continually hoping to grow.

Customer-to-Customer (C2C)

In spite of the fact that organizations don’t have as enormous of an effect on this sort of exchange, client to-client (C2C) exchanges are as yet significant. These exchanges depend on an outsider to go about as a middle person.

For instance, think about eBay. While eBay isn’t selling or buying products, they’re offering an assistance to their clients. Installments are securely done through eBay’s website, and the purchaser’s and dealer’s data is moved on the web. In this C2C relationship, the mediator doesn’t encourage dispatching, however, as that administration is by and large gave by the dealer.

Customer-to-Business (C2B)

A lesser-known type of online business, C2B is like C2C in that a delegate is frequently required. In this exchange, the shopper goes about as a vender and the business goes about as a purchaser.

Stock photographs are an astounding case of a C2B exchange. The shopper snaps a picture and transfers it to a stock photograph site. The business at that point pays for the option to utilize the stock photograph. The middle person website has the exchange, moving the cash and data on the web.

Business-to-Administration (B2A)

B2A e-commerce, also referred to as B2G, is when a business provides an online service for the government, generally through a website.

One way to understand B2A e-commerce is through taxes. Taxes, which go to the government, can be filed online through third-party businesses, such as TurboTax or H&R Block.

Consumer-to-Administration (C2A)

Like B2A, C2A happens when a customer is giving something to the administration.

A C2A exchange can be as straightforward as paying for stopping tickets or requesting another administration ID. Nonetheless, to be viewed as a C2A internet business exchange, this must be done on the web. While C2A and B2A aren’t the main internet business types today, both are a significant piece of things to come of online exchanges.


No matter what eCommerce business model you choose, chances are you are going to need outside funding at some point in order to scale your business

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