Electronic commerce or electronic commerce are transactions or other terms of sale that are conducted electronically. This involves buying, selling, and exchanging goods or services for the exchange of money using computer networks such as the Internet. Contrary to popular belief, eCommerce doesn’t just exist on the web. In fact, e-commerce was already around and working 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 doing business with each other. An example of this is manufacturers selling their product to distributors and wholesalers selling it to retailers. Therefore, the price can be based on the number of orders and is often available.
• B2C (business to consumer)
The business-to-consumer relationship typically involves selling products and services to the general public or to 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 an average customer really has in mind when it comes to e-commerce in general. With the help of e-commerce, you can easily buy many things at once without having any human interaction. An example of this is if you’re having a hard time finding a book, need to purchase a high-end custom computer system, or find a first-class all-inclusive trip to a tropical island paradise. Therefore, 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 establishes an online budget where in a matter of hours many companies review the requirements that the consumer needs and then bid on the project. It empowers customers around the world by providing the meeting place and platform for that certain transaction.
• C2C (Consumer to Consumer)
A very good example of C2C is eBay. It is where consumers sell their products to other consumers through offers. Thus, the highest bidder can buy the product. Another example is sites that offer free classified ads, auctions, and forums where consumers can buy and sell products to other consumers. They use PayPal as a tool for the online payment system where they can easily send and receive money over the Internet.
There is another form of e-commerce which is B2E or Business-to-Employee e-commerce. Here, companies are using internal networks to offer their employees products and services online. It may not necessarily be online on the Web.
The 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-to-Government). These transactions primarily involve the government, from acquisition to tax filing, business registration, and license renewal. Many other categories still exist, but they tend to be superfluous.