E-commerce or electronic commerce is a part of eBusiness that processes purchases, sales, and exchanges of goods and services through computer networks or other smart devices connected to the Internet and the terms of sale are made electronically. Ecommerce is not done only on the Web. In fact, e-commerce is alive and well-run for business transactions before the Web.
CLASSIFICATION OF E-COMMERCE BUSINESS BASED ON TYPES OF SALE:
Physical goods: books, gadgets, furniture, appliances, clothing, accessories and the like
Digital goods: software, ebooks, music, text, pictures, videos and the like
Services: tickets, insurance, web creation and the like.
Knowing the classification is important for you as it gives analysts insight into the business model and business finance model later on. For example, physical goods delivery logistics can be a big challenge for some businesses.
CLASSIFICATION OF E-COMMERCE BUSINESS BASED ON CATEGORY:
If you are currently wanting to do business online especially in the field of eCommerce, you must first understand some classification of business in this field because there are several different things you need to know so that later you can understand which business you will live.
B2B (BUSINESS TO BUSINESS)
Two actors b2b or business to business is certainly both the Business, B2B Model focuses on providing products from one business to another. Because Companies do business with each other like manufacturers sell to distributors and wholesalers sell to retailers. Prices are based on order quantity and are often negotiable. The volume and value of B2B e-commerce can be huge.
B2C (BUSINESS TO CONSUMER)
For this type of Business actors sell to the general public (consumer) usually through catalogs utilizing software such as websites. This type of business that we often encounter in the internet world today. Like the famous online store Amazon. In Amazon people are usually do some trade or selling and buying products. Some entrepreneurs who do this on Amazon of course want to make some profits from what they do. To optimize your business on Amazon there’s a tool that can help you such as AmaSuite 5. If you are interested to see AmaSuite Review here.
The advantage of running a business type of B2C (Business to Costumer) is the lack of physical store needs. But the complexity and cost of logistics can be a hindrance to the growth of this B2C e-commerce business model. However, even though this type of business does not need a physical store but it also needs a warehouse for stock items if it is sold very much.
C2B (CONSUMER TO BUSINESS)
For this one type a consumer of the projects with an established budget online and within hours the company reviews the requirements of the consumer and makes an offer on the project. Consumers can review the bids and choose which companies will complete their projects. this you can see this actor like in Freelancer site.
C2C (CONSUMER TO CONSUMER)
There are many sites that offer free advertising, auctions, and forums where individuals can easily buy and sell directly by utilizing online payment systems such as PayPal or bank transactions, where people can send and receive money online with ease. The eBay auction service is a great example where the transactions between Consumer to Consumer take place every day since 1995.
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