E-commerce and its types
E-commerce is the buying and selling of goods and services on the Internet. In practice, this term and e-business can be used interchangeably.
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Types of E-commerce:
B2B is the selling between companies, wholesale rather than retail. But it means more than that. Efficient use of capital demands, which entails anticipating demand, and so maintaining detailed information flows between all parties involved in today’s complex manufacturing processes. B2B involves widening the circle of suppliers (for safety and competition), and of centralizing control.
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C2B is a rather peculiar Internet phenomenon. An example of C2B e-commerce could be the following. A student wants to fly from London to New York, but has only £200 ($320) in the bank to pay for this round trip. They put up an ad in an Internet C2B site, seeking airlines that are willing to offer the transatlantic round trip for £200 or less. The beauty of the Internet is that it brings together a large number of customers to create a marketplace that a number of airlines (that will have to otherwise fly with empty seats) will be interested in.
B2E (Business to Employee) E-Commerce commonly refers to the requisitioning of supplies by employees for use in their jobs, but this really has grown to encompass much more. For example, B2E makes it very easy for an employee to requisition a new toner cartridge and printer paper – the order is entirely electronic, and supervisors are asked to approve the requisition in the event that the total order exceeds preset limits for that particular employee. However, B2E has grown into technologies that allow the employee to access their employee records to update address information, shift investments in the 401K plan, or maintain their internal resume. Most of companies have discovered that B2E technologies have substantially reduced the administrative burdens with the human resources department. Normally, maintaining employee information has little to do with commerce, but this term has grown to encapsulate this activity into the B2E definition.
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The introduction of the new economy has helped to create a very individualistic and independent society. Consumers are no longer totally reliant on corporations and are increasingly looking to conduct their own business transactions. This is evident in Western Australia where the number of small businesses has doubled from 1983 to 1999. Apparently, this movement is Consumer-to-Consumer (C2C) applications within e Business. C2C applications refer to any transactions between and amongst consumers. In the Past, when eCommerce was first introduced; it redefined the traditional structure of business by giving small firms and individuals the same opportunity as multi-national corporations. As a result, most of individuals established online organizations that encouraged and assisted commerce between consumers.
There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like Pay Pal where people can send and receive money online with ease. EBay’s auction service is a good example of where person-to-person transactions take place everyday.
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.
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