Types of E- Commerce

E-Commerce or Electronics Commerce business models can generally categorized in following

categories.
 Business - to - Business (B2B)
 Business - to - Consumer (B2C)
 Consumer - to - Consumer (C2C)
 Consumer - to - Business (C2B)
 Business - to - Government (B2G)
 Government - to - Business (G2B)
 Government - to - Citizen (G2C)

Business - to - Business (B2B)

Website following B2B business model sells its product to an intermediate buyer who
then sells the product to the final customer. As an example, a wholesaler places an order from a
company's website and after receiving the consignment, sells the end product to final customer
who comes to buy the product at wholesaler's retail outlet.

Business Website Business

Advantages of B2B

1. It is cost reduction technique for the company so as to overcome mediator.

2. With advancement in technology B2B can be done with the help of Electronic commerce.

3. With the help of online auction the buyer of industrial goods can get the product at a
cheap deal, as there are many competitors in an online auction.

4. With E-Commerce electronic funds transfer-using EDI can be done between

organizations.
B2B helps in lowering the cost for selling and marketing.

5. It also shortens the selling cycle.

6. The most important advantage of B2B is to have JIT just in time delivery, the company
can have the track of good as to which place it has reached with the help of electronic
commerce.

Disadvantages of B2B

· Possible antitrust violations

· Low barriers to entry for competitors

Business - to - Consumer (B2C)

Website following B2C business model sells its product directly to a customer. A
customer can view products shown on the website of business organization. The customer can
choose a product and order the same. Website will send a notification to the business
organization via email and organization will dispatch the product/goods to the customer.

Advantages of B2C

Catalog Inflexibility

1. Direct "link" capabilities to content information and visual displays already existing on
other client web site. You can update your E-Catalog anytime, whether it's adding new
products, or adjusting prices, without the expense and time of a traditional print catalogs.
2. Extensive search capabilities by item, corporate name, division name, location,
manufacturer, partner, price or any other specified needs.

Shrinks the Competition Gap

1. Reduced marketing/advertising expenses compete on equal footing with much bigger

companies; easily compete on quality, price, and availability of the products

Unlimited Market Place

1. The Internet gives customers the opportunity to browse and shop at their place. They can
access your services from home, office, or on the road, 24 hours a day, 7 days a week,
monthly or yearly.
2. The Internet allows you to reach people around the world, offering your products to a
global customer base there you can buy the product easily.
A 24 Hour Store Reduced Sale Cycle

1. Reduce unnecessary phone calls and mailings.

Lower Cost of Doing Business

1. It has Reduced inventory, employees, purchasing costs, order processing costs associated with
faxing, phone calls, and data entry, and even eliminate physical stores. Reduce transaction costs.

Eliminate Middlemen

1. Sell directly to your customers.

Easier Business Administration

1. by using with right software, store inventory levels, shipping and receiving logs, and other
business administration tasks can be automatically stored, categorized and updated in real-time,
and accessed on demand of customers.

Frees Your Staff

1. Reduce customer service and sales support service.

Customers will love it

1. Gives customers control of sales process.

2. Builds loyalty of customer.

More Efficient Business Relationships

Better way to deal with dealers and suppliers.

Workflow Automation

1. By using this process we can Shipp, real time inventory accounting system which adjusts
stock levels and site, location availability instantaneously
2. Secured, automated registration verification, account entry and transaction authorization
features
3. Banking and accounting features customized for pre-approved third party direct sales,
vendor, consignment or internal transfer transactions.

Secure Payment Systems

1. Recent advancements in payment technologies allow encrypted, secure payment online

Disadvantages of B2C
Catalog Inflexibility

The catalog needs to regenerate every time when there is some new information or items to add
in.

High Marketing / Advertising Expenses

Reduced marketing/advertising expenses compete on equal footing with much bigger companies;
easily compete on quality, price, and availability of products.

Limited Market Place

Normally, customer will only locally and limited to certain area.

High Sales Cycle

Usually, a lot of phone calls and mailings are needed.

Required Higher Cost of Doing Business

Cost regarding inventory, employees, purchasing costs, and order-processing costs associated
with faxing, phone calls, and data entry, and even physical stores. Subsequently, increase
transaction costs.

Require A Middlemen

Some sales or transaction may taking part indirectly or gone through third party to your
customers.

Inefficient Business Administration

Store inventory levels, shipping and receiving logs, and other business administration tasks
might need to be categorized and updated manually in and done only when have time. This cause
the information might not the latest or updated.

Need to employ number of staff

Need staffs that give customer service and sales support service

Consumer - to - Consumer (C2C)

Website following C2C business model helps consumer to sell their assets like residential
property, cars, motorcycles etc. or rent a room by publishing their information on the website.
Website may or may not charge the consumer for its services. Another consumer may opt to buy
the product of the first customer by viewing the post/advertisement on the website.

C2C Advantages
 Paypal set up directly for this reason.
 Broader market.
 Eliminates intermediary.
 Constantly changing, updating.
 Always there so that consumers can use it whenever they want.

C2C Disadvantages
 No quality control
 No payment guarantee
 Hard to pay for using cheques, ATM, cards, etc. but future this is likely to chang

Consumer - to - Business (C2B)

In this model, a consumer approaches website showing multiple business organizations for a
particular service. Consumer places an estimate of amount he/she wants to spend for a particular service.
For example, comparison of interest rates of personal loan/ car loan provided by various banks via
website. Business organization that fulfills the consumer's requirement within specified budget
approaches the customer and provides its services.
Business - to - Government (B2G)

B2G model is a variant of B2B model. Such websites are used by government to trade and
exchange information with various business organizations. Such websites are accredited by the
government and provide a medium to businesses to submit application forms to the government.

Government - to - Citizen (G2C)

Government uses G2C model website to approach citizen in general. Such websites
support auctions of vehicles, machinery or any other material. Such website also provides
services like registration for birth, marriage or death certificates. Main objectives of G2C website
are to reduce average time for fulfilling people requests for various government services.