Types of E – commerce | All Forms of electronic commerce
In this digital age, in which the Internet is widespread, the concept of e-commerce has become popular, which offers many advantages to the merchant and consumer. Most people think that e-commerce is buying and selling through various websites, but it is much more than that. In fact, there are many types of e-commerce, which we will learn about in detail in this article.
Types of e-commerce is every business transaction over the Internet. However, while this idea is correct, we need to be more specific. Where we can classify e-commerce either according to the identity of the two parties to the business process, or according to what is sold or bought, or according to the business model.
A- Types of electronic commerce according to the identity of the two parties to the commercial process
E-commerce can be classified according to the identity of the two parties to the commercial process into five main forms, namely:
Business to Business (B2B)
B2B e-commerce represents the business activity that takes place between two companies. All electronic transactions of goods or services here are between companies. That is, the seller is a company, and the customer is also a company. An example of these companies: software companies, marketing agencies. In this type of business, sales and decision-making takes longer than usual.
From Business to Customer (B2C)
It is the traditional model in which the company sells its products to customers, but this is done through online stores such as Amazon. It is the most widespread e-commerce model. Here, sales and decision-making take place in short periods and are characterized by speed.
This kind of commerce has developed to a great extent, due to the advent of the web, and there are already many online stores and virtual malls, which sell all kinds of consumer goods, such as computers, software, books, shoes, cars, food, financial products, digital publications, etc.
Business to consumer (C2C)
One of the types of e-commerce is the (C2C) model, which deals with the model of existing relationships between consumers, and includes sales that take place between two ordinary people! This type of business is very common in handicraft fairs, or sales sites that offer used items for sale!
Generally, these transactions are done through a third party, which provides an online platform where transactions are actually executed such as classified ads sites.
From individuals to businesses (C2B)
It occurs when individuals sell products and services to companies, and it is a model that was not very common until recently. This type of e-commerce is very common in crowdsourcing projects. A large number of individuals make their services or products available for purchase to companies seeking precisely these types of services or products.
Examples of these practices are, for example, advertising in social media, such as influencers who advertise for companies and stores on Instagram, Snapchat, or Twitter. Or simply freelance platforms like Upwork.
Business to Government (B2G)
A business in which the government is the sole customer of companies, such as Synergetics Inc., which supplies services to government agencies and contractors.
There is also the “G2B” sector, which includes government sales to private companies, and the “G2C” sector, which includes government sales to individuals.
B – Types of electronic commerce according to what is sold or bought
E-commerce types can also be categorized according to the products or services sold over the Internet. The following is a list of the types of e-commerce according to what is sold or bought.
Stores that sell physical goods
Mostly online retail business. Where it can include clothing stores, homewares, gifts etc., to name a few.
Stores that sell physical goods offer items online and enable shoppers to add the things they love into their virtual shopping carts. Once the transaction is complete, the store ships the orders to the shopper. An increasing number of retailers are hand-delivering in-store deliveries.
Some examples of these e-commerce stores include, for example, eyewear stores such as Warby Parker, men’s clothing store Bonobos, and this Zappos shoe store globally. As for the Arabs, we can mention the “Namshi” website that specializes in shoes, Jolly Chic, Souq.com, and Noon. for example .
Electronic stores that sell services
Services can also be bought and sold online. It is usually consultants and freelancers who are involved in the e-commerce of online services.
An example of this is Fiverr, Fiverr, and an independent market. Persons who wish to purchase from service sites must submit a request on the website before the seller delivers the required services, and it is preferable to communicate with the seller to find out his availability to receive requests for services.
Some service providers, on the other hand, require you to contact them first (i.e. book a consultation) to determine your needs in more detail, and examples of sites that do this include Baladina.com for e-marketing and information technology and other sites specialized in providing services and consultations.
Online stores that sell digital products
E-commerce, by its very nature, is highly technical, so it is not surprising that many merchants sell “e-goods” online.
Common types of digital products include: e-books, e-courses, software, graphics, photos, and virtual goods.
Examples of websites that sell digital products include:
* Shutterstock (a site that specializes in selling graphics and images), if you are looking for an image, for example, to use in your designs or ads, you can buy it from this site
* Udemy (a platform for online training courses) and the same in the Arab world, the Edraak platform, where you can find many training courses in video format in various fields.
* Slack (a company that provides instant messaging, archiving, and team collaboration), Slack is a chat program that is almost similar to well-known chat programs, but provides specialized messaging tools for businesses or different work teams.
C – Types of electronic commerce according to the business model
Goods delivery
According to this model, the customer requests the product he wants via the Internet, so the online store passes the request to the supplier, who ships the item directly to the customer.
This allows the online store to be free from the burden of storing, wrapping or packaging goods. But on the other hand, if the seller is slow, if the quality of the products is lower than expected, or if there are any problems with the order, it will be the responsibility of the online store.
wholesale and warehousing
This type requires a lot of investment in the beginning, and it also needs to take inventory of inventory and goods, track customer orders and shipping data, and invest in the place where the goods will be stored.
The “DollarDays” site represents this model, and it offers more than 260,000 products, and the site benefits from selling to retailers and individuals at a wholesale price.
Customization
If the entrepreneur has a different idea for a product, but does not have enough funds or the desire to build a factory to produce the commodity, then this model is most suitable for him.
In this case, companies that have an idea for a product can send their plans or models to manufacturers to produce the product that meets customers’ desires, and they can ship it directly to customers, or through a third party such as Amazon.
This type allows for a quick changeover of suppliers if product quality issues are encountered, and has low start-up costs.
White Label
According to this model, the entrepreneur chooses a product made by another company that has already sold, but the producing company repackages it with the online store owner’s brand logo, which is common in beauty and health products.
The problem with this type is that the product that is not sold will remain in the store, so companies require a minimum amount of production, and it is important to think of a product that achieves sales and is constantly requested by customers.
Subscriptions
Companies that provide this type rely on a subscription model to provide a range of products to customers on a regular basis, and these companies have relatively stable and regular revenue, and can easily encourage customers to buy more subscriptions or encourage their acquaintances to subscribe.
Among the products that this type works with are health, fashion and food products.