When we talk about electronic commerce, terms such as B2B or B2C appear. But what do these acronyms mean, and what do they imply? These terms tell us who are the actors that provide the service and to whom they are directed. In other words, what is the e-commerce business model? To understand the different types of electronic commerce, it is necessary to know the different actors that can take part in the process.
On the one hand, we have the Business or company, represented with the letter ” B. ” This actor indicates that the commercial operation involves the business sector and the self-employed. The letter ” C ” corresponds to Consumer or Customer or Final Customer, which means that the product or service is originated or intended for the final consumer. Less common, we find the businesses oriented to the Administration or Administration (” A “), which involve a relationship with governments or public administrations. Likewise, two other letters that are less frequently found are ” I ” and “E. ” The first corresponds to Investors or Investors, and its use corresponds to business models aimed at its own investors. The second, for its part, refers to Employees. As might be expected, these types of commerce involve the company’s own workers.
Types of e-commerce
Once we have established the different elements that can participate in electronic commerce, we can analyze the main e-commerce business models that are generated according to the relationships between them.
1. Business-to-Consumer (B2C)
One of the most common types of electronic commerce is the one that corresponds to the acronym B2C. They refer to trade from companies to individuals. In this case, companies offer their services or products through the web. Some examples would be Amazon, Carrefour, MediaMarkt, etc.
2. Business-to-Business (B2B)
As the name suggests, B2B is business-to-business transactions. It is one of the most common types of electronic commerce. In Business-to-Business we find that the selling party usually offers its services in one of three ways:
2.1 Single sale to companies
It is about offering products or services exclusively to other companies. This may be due to the nature of the product, such as industrial products, or by sales quantities, such as wholesale. These sales processes are adapted to the client’s needs, such as payment methods and terms.
2.2 Indistinct sale to company and client
This type of transaction occurs mostly between small businesses. They do not differ in products, prices, or conditions regardless of whether they buy companies or end customers.
2.3 Differentiated sales between companies and clients
The shops that offer their products to both companies and individuals sometimes have different stores for each target. Thus, in the business area, they usually show products without VAT, offer larger quantities of product, and even discounts in relation to the quantities purchased. An example is found in telephone stores, where the products, offers, and prices are different for individuals and for companies.
3. Administration-to-Consumer (A2C)
The procedures that involve the public administration and the final citizen go under the initials A2C. This type of e-commerce occurs in procedures such as paying fines online or requesting a ford, for example.
4. Administration-to-Business (A2B)
In the same way that the Administration offers to carry out procedures and payments to citizens, it does so with companies. The last of the types of electronic commerce is one in which the administration offers services through the Internet that involve transactions, such as the application for licenses, the payment of fees, or the registration of trademarks and patents.
5. Business-to-Employee (B2E)
In this case, a relationship is established between the company and the employee. Companies, through their Intranet, can offer their workers offers or products with special conditions.
6. Business-to-Administration (B2A)
The company relationship with Administration in electronic commerce is a model by which entities provide a service to the public administration. An example of this relationship is the businesses dedicated to transparency portals for public entities.
7. Business-to-Investors (B2I)
When the commercial relationship seeks to offer services to investors, we are talking about the company-investor relationship. The company, in this case, is dedicated to locating, analyzing, and unifying the format of projects to present them to investors,
8. Consumer-to-Business (C2B)
A less common transaction is customer-to-business commerce, reversing the traditional B2C concept. Under the acronym C2B we find a business model whereby the consumer creates value for the company. This type of relationship occurs, for example, when an influencer recommends a link to the sale of a product and receives a payment from the company for sharing it.
9. Consumer-to-Consumer (C2C)
When establishing a business relationship from client to client, we speak of C2C. The case of eBay or Wallapop are examples of tools that allow establishing Consumer-to-Consumer relationships. It is the individuals themselves who offer their products and set a price, and it is other individuals who purchase these goods.
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