CONTRARY to popular belief, ecommerce is not just on the Web. In fact, ecommerce was alive and well in business to business transactions before the Web back in the 70s via EDI (Electronic Data Interchange) through VANs (Value-Added Networks). Ecommerce can be broken into four main categories: B2B, B2C, C2B, and C2C.
• B2B (Business-to-Business)
These are companies that do business with each other, such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable.
• B2C (Business-to-Consumer)
This is when businesses sell to the general public typically through catalogs utilizing shopping cart software. By money volume, B2B takes the prize, however B2C is really what the average person has in mind with regards to ecommerce as a whole.
“Think about this, are you having a hard time finding a book? Need to purchase a custom, high-end computer system? How about a first class, all-inclusive trip to a tropical island? With the ecommerce, all three things can be purchased literally in minutes without human interaction. We truly have come a long way!” told us Erfaan Mojgani, who is Kaymu Tanzania’s country manager.
• C2B (Consumer-to-Business)
A consumer posts his project with a set budget online and within hours companies review the consumer’s requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. Elance empowers consumers around the world by providing the meeting ground and platform for such transactions.
• C2C (Consumer-to-Consumer)
There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. You can find such transactions on sites like KaymuTanzania, who have been doing this every day since 2013.
network Companies using internal networks to offer their employees products and services online–not necessarily online on the Web–are engaging in B2E (Business-to-Employee) ecommerce.
G2G (Government-to-Government), G2E (Government-to-Employee), G2B (Government-to-Business), B2G (Business-to-Government), G2C (Government-to-Citizen), C2G (Citizen-to-Government) are other forms of ecommerce that involve transactions with the government–from procurement to filing taxes to business registrations to renewing licenses. There are other categories of ecommerce out there, but they tend to be superfluous