E-Commerce ─ Business Models

E-commerce business models can generally be categorized into the following categories.

Business - to - Business (B2B)
Business - to - Consumer (B2C)
Consumer - to - Consumer (C2C)
Consumer - to - Business (C2B)
Business - to - Government (B2G)
Government - to - Business (G2B)
Government - to - Citizen (G2C)

Business -to -Business 

A website following the B2B business model sells its products to an intermediate buyer, who then sells the product to the final customer. As an example, a wholesaler places an order from a company's website and after receiving the consignment, sells the end-product to the final customer who comes to buy the product at one of its retail outlets.

Business -to -Consumer

A website following the B2C business model sells its products directly to a customer. A customer can view the products shown on the website. The customer can choose a product and order the same. The website will then send a notification to the business organization via email and the organization will dispatch the product/goods to the customer.

Consumer -to -Consumer

A website following the C2C business model helps consumers to sell their assets like residential property, cars, motorcycles, etc., or rent a room by publishing their information on the website. Website may or may not charge the consumer for its services. Another consumer may opt to buy the product of the first customer by viewing the post/advertisement on the website.


E-Commerce provides the following features:

Non-Cash Payment: E-Commerce enables the use of credit cards, debit cards, smart cards, electronic fund transfer via bank's website, and other modes of electronics payment.

24x7 Service availability: E-commerce automates the business of enterprises and the way they provide services to their customers. It is available anytime, anywhere.

Advertising/Marketing: E-commerce increases the reach of advertising of products and services of businesses. It helps in better marketing management of products/services.

Improved Sales: Using e-commerce, orders for the products can be generated
anytime, anywhere without any human intervention. It gives a big boost to existing sales volumes.

Support: E-commerce provides various ways to provide pre-sales and post-sales
assistance to provide better services to customers.

Inventory Management: E-commerce automates inventory management. Reports get generated instantly when required. Product inventory management becomes very efficient and easy to maintain.

Communication improvement: E-commerce provides ways for faster, efficient,
reliable communication with customers and partners.

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