7 Different Types of E-commerce You Need to Know
E-commerce is the process of buying and selling goods and services over the internet. It has become a huge industry that offers many opportunities for businesses and consumers alike. But did you know that there are different types of e-commerce models, depending on who is involved in the transaction and what kind of products or services are exchanged? In this article, we will explain the 7 different types of e-commerce you need to know and how they work.
Business-to-Business (B2B)
B2B e-commerce is when businesses sell to other businesses online. This is the largest and most common type of e-commerce, as it involves transactions between manufacturers, wholesalers, distributors, and retailers. B2B e-commerce can help businesses reduce costs, increase efficiency, and reach new markets. Some examples of B2B e-commerce platforms are Alibaba, Amazon Business, and Shopify Plus.
Business-to-Consumer (B2C)
B2C e-commerce is when businesses sell to individual consumers online. This is the type of e-commerce that most people are familiar with, as it involves transactions between online stores and customers. B2C e-commerce can help businesses expand their customer base, improve customer loyalty, and offer personalized experiences. Some examples of B2C e-commerce platforms are Amazon, Walmart, and eBay.
Consumer-to-Consumer (C2C)
C2C e-commerce is when consumers sell to other consumers online. This type of e-commerce allows individuals to exchange goods or services without intermediaries. C2C e-commerce can help consumers earn money, find bargains, and access niche products. Some examples of C2C e-commerce platforms are Etsy, Craigslist, and Facebook Marketplace.
Consumer-to-Business (C2B)
C2B e-commerce is when consumers offer products or services to businesses online. This type of e-commerce reverses the traditional model of B2C e-commerce, as it empowers consumers to set their own prices and terms. C2B e-commerce can help consumers showcase their talents, earn income, and influence businesses. Some examples of C2B e-commerce platforms are Upwork, Fiverr, and Kickstarter.
Business-to-Administration (B2A)
B2A e-commerce is when businesses provide services to public administrations online. This type of e-commerce involves transactions between private companies and government agencies. B2A e-commerce can help businesses access public contracts, streamline processes, and comply with regulations. Some examples of B2A e-commerce services are tax filing, social security, and health care.
Consumer-to-Administration (C2A)
C2A e-commerce is when consumers provide services to public administrations online. This type of e-commerce involves transactions between individuals and government agencies. C2A e-commerce can help consumers access public benefits, participate in civic activities, and voice their opinions. Some examples of C2A e-commerce services are online voting, online education, and online petitions.
Direct-to-Consumer (D2C)
D2C e-commerce is when brands sell directly to consumers online without intermediaries. This type of e-commerce allows brands to control their own distribution channels, pricing strategies, and customer relationships. D2C e-commerce can help brands increase their margins, enhance their branding, and foster customer loyalty. Some examples of D2C e-commerce brands are Warby Parker, Dollar Shave Club, and Casper.
E-commerce is a diverse and dynamic industry that offers many benefits for both buyers and sellers online. By understanding the different types of e-commerce models, you can choose the best one for your business or personal needs. Whether you want to sell or buy products or services online, there is a type of e-commerce that suits you.
Different Types of E-commerce and Their Market Potential
E-commerce is the buying and selling of goods and services over the internet. It can be classified into six basic types based on the relationships between the parties involved in the online transactions: business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C), consumer-to-business (C2B), business-to-administration (B2A), and consumer-to-administration (C2A). Each type of e-commerce has its own advantages, challenges, and market potential.
According to a report by Statista, the global e-commerce market size was estimated at 4.28 trillion US dollars in 2020, and is expected to grow to 5.4 trillion US dollars by 2022. The largest segment of e-commerce is B2B, which accounted for 72% of the total e-commerce sales in 2019, followed by B2C with 23%, C2C with 3%, C2B with 1%, B2A with 0.6%, and C2A with 0.4%. The fastest-growing segment is B2C, which is projected to increase its share to 26% by 2024, driven by the rising number of online shoppers, especially in emerging markets like China, India, and Southeast Asia.
The Impact of COVID-19 on E-commerce Trends
The COVID-19 pandemic has had a significant impact on the e-commerce industry, as it has accelerated the shift from physical to online shopping due to lockdowns, social distancing, and health concerns. According to a report by eMarketer, the global e-commerce sales grew by 27.6% in 2020, reaching 4.28 trillion US dollars, while the global retail sales declined by 3% to 23.84 trillion US dollars. The e-commerce share of total retail sales increased from 14.1% in 2019 to 18% in 2020, and is expected to reach 21.8% by 2024.
The pandemic has also changed the consumer behavior and preferences in terms of online shopping. Some of the key trends that emerged or intensified in 2020 are: the growth of online grocery shopping, the rise of social commerce and live streaming, the adoption of contactless payments and delivery options, the increased demand for health and wellness products, and the emergence of new online shopping occasions such as virtual events and festivals.
References:
https://www.numinix.com/blog/2018/11/05/what-are-the-different-categories-of-e-commerce/
https://en.wikipedia.org/wiki/Types_of_e-commerce#cite_ref-bb3_4-0
https://en.wikipedia.org/wiki/Types_of_e-commerce#cite_ref-models_9-1
https://www.gcg42.ac.in/medias/media/other/556/different-types-of-e-commerce.pdf
https://en.wikipedia.org/wiki/Types_of_e-commerce
https://www.investopedia.com/terms/e/ecommerce.asp
https://bloomidea.com/en/blog/types-e-commerce
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Source: https://www.emarketer.com/content/global-ecommerce-update-2021
