Business to Business (B2B): online transactions between businesses only.
E.g., General Motors.
Business to Customer (B2C): online transactions between businesses and customers.
E.g., PrettyLittleThing.
Customer to Customer (C2C): online transactions between customers only.
E.g., eBay.
E-commerce, the act of buying or selling goods and services over the internet, has diversified into various types, each catering to different market segments and needs. These types are characterized by the nature of the transactions and the relationships between those involved in the transaction, namely businesses, consumers, and administrations. Here’s a detailed explanation of the primary types of e-commerce, along with industry-level examples:
1. Business to Consumer (B2C)
Definition: B2C e-commerce involves transactions between businesses and individual consumers. It’s the most common e-commerce model, where retailers sell products, services, or information directly to consumers online.
Example: Amazon is a quintessential example of B2C e-commerce. As the world’s largest online retailer, it offers an extensive range of products from books and electronics to groceries and clothing, serving millions of consumers globally.
2. Business to Business (B2B)
Definition: B2B e-commerce refers to the electronic exchange of products, services, or information between businesses rather than between businesses and consumers. It often involves transactions such as supply chain operations, wholesale dealings, and bulk purchasing.
Example: Alibaba.com serves as a leading platform for B2B transactions, connecting manufacturers, suppliers, and wholesalers with businesses around the world. Companies can source raw materials, components, or finished products across various industries.
3. Consumer to Consumer (C2C)
Definition: C2C e-commerce enables transactions of goods and services between consumers, typically through a third-party platform that facilitates these exchanges. It includes the sale of second-hand goods, handmade items, or digital products.
Example: eBay, a pioneer of C2C e-commerce, allows individuals to buy and sell items in an auction or direct sale format. It caters to a wide range of product categories, from vintage clothing and collectibles to electronics and home goods.
4. Consumer to Business (C2B)
Definition: C2B e-commerce is a model where individuals offer products or services to businesses. In this reverse marketplace, businesses compete to purchase services or products from consumers.
Example: Shutterstock operates on a C2B model by allowing photographers, videographers, and illustrators to sell their content to businesses and individuals needing high-quality images and videos for their projects or marketing campaigns.
5. Business to Government (B2G) or Business to Administration (B2A)
Definition: B2G/B2A e-commerce involves transactions conducted between companies and governmental or public administration entities. It includes supplying goods and services to government agencies, contract bidding, and fulfillment.
Example: GovWin IQ by Deltek provides a platform for B2G transactions, offering businesses tools and data to find, manage, and win government contracts, facilitating a direct link between businesses and government procurement opportunities.
6. Consumer to Government (C2G) or Consumer to Administration (C2A)
Definition: C2G/C2A e-commerce involves transactions between individuals and public administration entities. This includes paying taxes, tuition fees, utility bills, and accessing public services online.
Example: The IRS’s Electronic Federal Tax Payment System (EFTPS) is an example of C2G e-commerce, allowing U.S. taxpayers to pay their taxes online directly to the Internal Revenue Service, streamlining the tax payment process for millions of citizens.
