Three Forms of E-Commerce
E-commerce involves the exchange of goods and services between individuals, organizations and businesses. This category of online commerce includes online directories, product and supply exchange websites, and e-procurement interfaces. By 2023, business-to-business e-commerce will account for 17% of U.S. B2B sales, according to a report by Forrester.
B2C e-commerce is a form of online commerce that emphasizes long-term customer relationships. Large corporations frequently reorder products from B2C vendors, particularly when the vendor’s facilities are satisfactory. A B2C business must be able to comprehend and cater its customer communications to their specific requirements. B2C businesses must capitalize on the fact that the majority of their customers are private individuals in order to cultivate a loyal customer base.
The ability of B2C e-commerce to overcome geographical barriers is another advantage. You can now reach potential customers in your community, across the country, and even across the globe by putting your store online. As a result, B2C e-commerce has grown in popularity.
B2C e-commerce has become a significant component of international trade. It is expanding at a rapid rate. In 2016, the B2C market in the United States alone was worth $3.4 trillion and was projected to reach $7.45 trillion by 2030. This market will account for more than 50 per cent of the global market by the end of the decade.
B2C e-commerce sites have various models. Some require payment. In such circumstances, the consumer pays a fee to access exclusive content. Netflix, which provides access to premium content for a subscription fee, is an example of fee-based B2C.
There are a variety of different types of partnerships in e-commerce. These types of relationships typically involve the exchange of goods or services. Nonetheless, C2G partnerships can also involve the transfer of obligations. Examples include online tuition payment at a university and property tax payment to the county assessor. Once you’ve determined the type of partnership you wish to pursue, you’ll need to determine how you intend to generate revenue. There are numerous options for processing orders, managing inventory, and shipping products.
In e-commerce, three primary business models are commonly employed. First, there are government-to-business partnerships (B2G). In this model, a business sells its products and services to a government agency. Typically, the goods and services are classified by industry and range from office supplies to sophisticated consulting services. As government agencies search for cost-cutting measures, these collaborations are gaining popularity.
Examples of e-commerce involving government entities include C2G partnerships. A private company sells goods or services to a government agency in this type of partnership. This is typically a more complicated process than selling directly to consumers, but it is a potentially lucrative market for businesses. For example, a cleaning company may submit a bid to clean the county courthouse, while an IT company may submit a bid to manage the city’s computer hardware. C2G partnerships are also utilized for online tax payment and other government services.
Government organizations are notorious for their bureaucracy. They adhere to strict procedures and make decisions. They may require additional documentation, certifications, and approvals from vendors. Occasionally, they require background checks, staff qualifications, and past performance. Consequently, many businesses establish a separate divisions for selling to the government.
In business-to-business e-commerce, goods and services are sold to other businesses via the Internet. Examples of business-to-business e-commerce include the sale of software online, the marketing of corporations through websites, and the management of electronic data. This type of online sales is not, however, limited to businesses. B2B e-commerce can occur between businesses and other businesses, including the purchase of raw materials and components, in addition to traditional retail.
Business-to-business e-commerce activities can range from website maintenance to the development of industry-specific portals. These activities are designed to attract businesses, not consumers. For instance, retailers of apparel conduct business with manufacturers and wholesalers, whereas credit card companies and website developers conduct business with advertisers and designers.
As consumer expectations for online shopping increase, so do online retailers’ needs and capabilities. Businesses must ensure that the private information of their customers is protected and that the payment and shipping processes on their websites are streamlined. Additionally, customers anticipate being able to search for businesses on mobile devices. Consequently, business-to-business e-commerce is required to satisfy these customer expectations.
B2B e-commerce can increase the efficiency and productivity of the supply chain. It enables manufacturers to access real-time information regarding the status of inventory and components and enhances supply chain communication. It also improves inventory delivery and logistics processes.
