Updated on September 13, 2022 Show
Photo: Eva-Katalin / Getty Images Some people use the terms "e-business" and "e-commerce" interchangeably, but they aren't synonymous. To put it simply, e-commerce refers to buying and selling online, while e-business encompasses all business conducted online. E-commerce can be viewed as a subset of e-business. If you plan on starting or working closely with an internet-based company, you should strive to understand all the ways these two concepts are unique. E-Business BasicsIn a tech-driven world, it might be tough to tell which businesses are truly e-businesses. Perhaps the best way to understand e-businesses is with the help of examples:
Many processes that are described as e-business might be handled in-house through a company's network, or it might be something the company outsources to a provider that specializes in whatever service is desired. By producing them in-house, standard businesses may incorporate some elements of e-business into their plan—the two types of businesses are not mutually exclusive. Sometimes the difference between a standard business and an e-business is just a matter of how business is conducted. For example, if you are an advisory firm helping people choose the right furniture, then you are a business, but if you run a website where people can compare furniture options, then you are an e-business. E-Commerce BasicsCompared to e-business, the definition of e-commerce is clearer. In its basic form, it involves placing orders and making payments online. E-commerce comes in multiple forms. In business-to-consumer (B2C) e-commerce, a business sells goods and services to consumers through its website. Many brick-and-mortar retailers have adapted to the popularity of e-commerce, and they now conduct sales through their websites as well as in their stores. E-commerce sales can include every element of a sale: ordering a product, paying for a product, and having it delivered. It might also involve only part of the process. For example, a customer might order a product online to be picked up at the store. Payment might be conducted online or at the store when the item is picked up. Either way, the transaction still involved an element of e-commerce. Many businesses also sell through virtual marketplaces in addition to their own websites. For example, a popular brand like Nike will sell shoes from its website, as well as through an online retailer like Amazon. Whether you buy it from Nike's website or Amazon's, the transaction is still an example of e-commerce. Business-to-Business (B2B) E-CommerceWhile the average consumer might not realize it, much of the e-commerce that takes place around the world involves B2B relationships. This type of e-commerce often involves transactions like restocking necessary supplies, and very often it will be automated. For example, a landscaping company could have a contract with an e-commerce company to remain stocked on items like garden shears, gloves, and fertilizer. To maintain efficiency, the landscaping company might have an automated process in place to track supply levels. As crews use fertilizer on the customers' yards, and the inventory drops below a set level, an automated system will place an order for more. Generally speaking, when we think of e-commerce, we think of an online commercial transaction between a supplier and a client. However, and although this idea is right, we can be more specific and actually divide e-commerce into six major types, all with different characteristics. There are 6 basic types of e-commerce:
1. Business-to-Business (B2B)Business-to-Business (B2B) e-commerce encompasses all electronic transactions of goods or services conducted between companies. Producers and traditional commerce wholesalers typically operate with this type of electronic commerce. 2. Business-to-Consumer (B2C)The Business-to-Consumer type of e-commerce is distinguished by the establishment of electronic business relationships between businesses and final consumers. It corresponds to the retail section of e-commerce, where traditional retail trade normally operates. These types of relationships can be easier and more dynamic, but also more sporadic or discontinued. This type of commerce has developed greatly, due to the advent of the web, and there are already many virtual stores and malls on the Internet, which sell all kinds of consumer goods, such as computers, software, books, shoes, cars, food, financial products, digital publications, etc. When compared to buying retail in traditional commerce, the consumer usually has more information available in terms of informative content and there is also a widespread idea that you’ll be buying cheaper, without jeopardizing an equally personalized customer service, as well as ensuring quick processing and delivery of your order. 3. Consumer-to-Consumer (C2C)Consumer-to-Consumer (C2C) type e-commerce encompasses all electronic transactions of goods or services conducted between consumers. Generally, these transactions are conducted through a third party, which provides the online platform where the transactions are actually carried out. 4. Consumer-to-Business (C2B)In C2B there is a complete reversal of the traditional sense of exchanging goods. This type of e-commerce is very common in crowdsourcing based projects. A large number of individuals make their services or products available for purchase for companies seeking precisely these types of services or products. Examples of such practices are the sites where designers present several proposals for a company logo and where only one of them is selected and effectively purchased. Another platform that is very common in this type of commerce are the markets that sell royalty-free photographs, images, media and design elements, such as iStockphoto. 5. Business-to-Administration (B2A)This part of e-commerce encompasses all transactions conducted online between companies and public administration. This is an area that involves a large amount and a variety of services, particularly in areas such as fiscal, social security, employment, legal documents and registers, etc. These types of services have increased considerably in recent years with investments made in e-government. 6. Consumer-to-Administration (C2A)The Consumer-to-Administration model encompasses all electronic transactions conducted between individuals and public administration. Examples of applications include:
Both models involving Public Administration (B2A and C2A) are strongly associated to the idea of efficiency and easy usability of the services provided to citizens by the government, with the support of information and communication technologies. Advantages of e-commerceThe main advantage of e-commerce is its ability to reach a global market, without necessarily implying a large financial investment. The limits of this type of commerce are not defined geographically, which allows consumers to make a global choice, obtain the necessary information and compare offers from all potential suppliers, regardless of their locations. By allowing direct interaction with the final consumer, e-commerce shortens the product distribution chain, sometimes even eliminating it completely. This way, a direct channel between the producer or service provider and the final user is created, enabling them to offer products and services that suit the individual preferences of the target market. E-commerce allows suppliers to be closer to their customers, resulting in increased productivity and competitiveness for companies; as a result, the consumer is benefited with an improvement in quality service, resulting in greater proximity, as well as a more efficient pre and post-sales support. With these new forms of electronic commerce, consumers now have virtual stores that are open 24 hours a day. Cost reduction is another very important advantage normally associated with electronic commerce. The more trivial a particular business process is, the greater the likelihood of its success, resulting in a significant reduction of transaction costs and, of course, of the prices charged to customers. Disadvantages of e-commerceThe main disadvantages associated with e-commerce are the following:
What is eAn e-business model is simply the approach a company takes to become a profitable business on the Internet. There are many buzzwords that define aspects of electronic business, and there are subgroups as well, such as content providers, auction sites and pure-play Internet retailers in the business-to-consumer space.
What are business transactions done through the Internet called?Ecommerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.
What are the 4 eThere are six major eCommerce business models:. Business to Consumer (B2C). Business to Business (B2B). Business to Government (B2G). Business to Business to Consumer (B2B2C). Consumer to Consumer (C2C). Consumer to Business (C2B). What is B2C eB2C business-to-consumer ecommerce, also called retail ecommerce, is a business model that involves sales between online businesses and consumers. B2C ecommerce is one of four major ecommerce business models, the other three being B2B (business-to-business), C2B (consumer-to-business), and C2C (consumer-to-consumer).
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