The eCommerce concept originated from the United States: on August 11, 1994, Philadelphia resident Phil Brandenberger bought Sting’s new disc “Ten Summoner’s Tales” on the Net Market website. The man paid online with a credit card. This is how eCommerce began. Since then, it has been actively developing, expanding and increasing its market share.
Ecommerce business types
There are many types of businesses involved in eCommerce today. Let’s explore the popular types of eCommerce and see what types are trending now.
Online trading between commercial organizations. Entrepreneurs conclude mutually beneficial deals with each other and develop their business. Usually it concerns the sale and purchase of components, spare parts or raw materials. For example, a computer shop orders spare parts to assemble a PC from different electronics companies. The seller receives money, and the buyer receives items to produce the final product. This also includes all services related to the work of companies online: finding contractors, content creation, website development, running social media and other services that are very often outsourced.
It is in B2B that the most capital rotates. BigCommerce did a study and found that 60% of B2B transactions are online payments.
A company (or an individual entrepreneur) sells goods to a consumer using an eCommerce platform.
When a girl buys a dress on the marketplace and pays for the purchase through an electronic payment service, she is participating in a B2C eCommerce model.
A business sells its product to government agencies and institutions. For example, when an IT company develops a website for the digitalization of public services.
Usually B2G works through tenders or auctions: the state structure creates an order and publishes it on a special platform on the web. Bidders submit bids and offer their price. The customer chooses the winner (in terms of price-quality ratio) and signs an agreement.
Trade between individual consumers. In C2C business model people sell and buy goods and services from each other.
Classifieds fall in that eCommerce type of business. As a rule, products are inexpensive, but there is a risk of encountering scammers.
Communication of people with the state via the Internet: paying taxes and fines, obtaining documents, etc. One such platform is the Russian Gosuslugi website.
G2C sites are not very big in number. The SimilarWeb states just a few of them.
It means that this sector is still growing and waiting for new participants to come.
The G2C model can be connected to non commercial activities. This includes information services where you can find out information about various places, events, and government agencies.
Ordinary people offer their products and services to businesses and set the price for them themselves. For example, a blogger talks about a product and gives a link to the store, thereby helping the company increase sales.
Electronic platforms for freelancers also work according to the C2B model: performers create content for companies, provide programming and design services.
Exchange of information between authorities. Most often G2G is associated with electronic document management.
Such activity simplifies the work of state bodies, makes it more efficient and effective.
Commercial relations between companies from the same business area. For example, interaction with partners, affiliates or suppliers.
This is the automation of business management. B2E systems operate within companies, help organize the work of employees and conduct commercial activities.
Corporate events are announced, equipment is requested and other company issues are resolved using the system.
Large companies, such as telecom operators, often have complex internal portals where an employee can receive training, find all instructions, etc.
The introduction of the B2E model is necessary for the growth and development of the company. In addition, satisfied employees often turn into brand ambassadors.
In our company there is such a system developed for our internal needs to simplify and automate business processes inside the company. It started as a Helpdesk system and then turned into a real ERP system with integrated Omnidesk, Pipedrive, company marketplace and other systems.
Combining B2B and B2C: the company sells the product to the end consumer through an intermediary. At the same time, the consumer knows who the real seller is.
OpenTable earns money by getting paid by restaurants for using its service and it makes a charge for each booking.
Diners (the C in the B2B2C model), have to register on Opentable and hence it gets access to all the clients of major restaurant chains.
The system works in currency exchange services. Sellers and buyers can access different electronic exchanges from one point.
Regardless of the type of e-commerce businesses you choose, whether it’s B2B, B2C, C2C, or other ecommerce types, you can always start from the base – CS-Cart/Multi-Vendor and further add the necessary functions. We can help you with this, as we have been doing the same for our own and client projects for 17+ years.