Electronic commerce (e-commerce) is an area of the economy that includes all financial and trade transactions that are carried out using computer networks, as well as business processes associated with the implementation of such transactions. In this article, we will talk in detail about e-commerce: where it is used and why it is needed, its types, advantages and disadvantages.
Why do we need e-commerce?
With the development of technology, it has become possible to buy almost any product via the Internet: we order pizza, cosmetics, household goods online, buy airline tickets, book hotels and perform a bunch of other operations. E-commerce is needed to make financial transactions using computer networks. With the help of e-commerce, we no longer need to go to the store every time to buy groceries, pay fines at the cash register or issue invoices on paper. All this can be done online.
Types of e-commerce
There is a generally accepted classification of e-commerce. Below we will tell you about the most famous and common types of e-commerce.
B2B (business-to-business)
B2B (business-to-business) is a type of relationship between legal entities (when one company sells products, and another company buys them). Let's give an example from life: company "A" produces household utensils (plates, mugs, forks) and sells them wholesale. Company "B" is a private store selling utensils. Company "B" does not have its own production, so it has to purchase goods from other organizations, for example, from company "A". That is, in this system of relationships, bolivia whatsapp number database company "A" sells goods not directly to the end consumer (an ordinary person), but to another legal entity. Their type of interaction is business-to-business (business for business), abbreviated as "b-t-b".
B2C (business-to-consumer)
B2C (business-to-consumer) is a term that refers to the interaction between a legal company and an ordinary individual (the end consumer). Let's look at a real-life example again: you order home appliances from an online store. The online store is a legal company selling goods. You are the end consumer who will use this appliance for its intended purpose. The type of your interaction is business-to-consumer (abbreviated as "b-t-c").
C2C (consumer-to-consumer)
C2C (consumer-to-consumer) is a term used to describe an electronic trading scheme where the seller and the buyer are not legal entities. In such commercial relations, there is usually a third party: an intermediary who organizes a special trading platform. The most striking and well-known example is the Avito website, where ordinary people sell things to other people.
This is what the Avito website looks like.Avito is an advertisement service for individuals and legal entities.
Other types of e-commerce
There are many more types of e-commerce. Below we will describe some of them.
B2G (business-to-government). Relations between business and government. An example is electronic government procurement, when the government buys the goods it needs via the Internet.
P2P (peer-to-peer). A term that describes lending money without the involvement of a traditional financial intermediary (such as a bank). An example is loans that are issued online on the websites of special credit organizations.
B2E (business-to-employee) — relationships between commercial organizations and employees (hired workers). Examples of such relationships: a field service employee is given access to customer and product data that is only available on the company's internal network.