In this article, I want to share knowledge about various types of business buy and sell online or e-Commerce, because maybe some people only know that eCommerce is buying and selling online and that’s all, but don’t know the types of eCommerce businesses.
E-commerce or electronic commerce is a part of eBusiness in which the process of buying, selling, and exchanging goods and services through computer networks or other smart devices connected to the internet and transactions or terms of sale are carried out electronically. Contrary to popular belief, e-commerce is not only on the Web. In fact, e-commerce was alive and well for business transactions before the advent of the Web.
E-commerce Business Classification Based on the Type sold:
- Physical goods: books, gadgets, furniture, tools, clothing, accessories and the like
- Digital goods: software, ebooks, music, text, pictures, videos and the like
- Service: tickets, insurance, web creation and the like.
Knowing these classifications is important to you because it provides analysts with insight into future business models and business financial models. For example, the logistics of delivering physical goods can be a big challenge for some businesses. Meanwhile, digital goods sellers do not face this problem because there is no need for shipping service fees. When it comes to selling tickets, there are many parameters that need to be evaluated in real time, for example in the case of airline tickets: seat availability, seat location, food preferences and much more.
E-commerce Business Classification Based on categories:
If you currently want to do business online, especially in the eCommerce field, you must first understand some of the business classifications in this field because there are several different things that you need to know so that later you can understand where the business you are going to be in.
B2B (Business to Business)
These two b2b or business to business players are of course both businessmen. The B2B model focuses on providing products from one business to another. Because Companies do business with one another, such as producers selling to distributors and wholesalers selling to retailers. Prices are based on order quantities and are often negotiable. The volume and value of B2B e-commerce can be enormous.
B2C (Business to Consumer)
For this type, business people sell to the general public (consumers), usually through catalogs using software such as websites. This type of business is what we often encounter in the internet world today. Like the famous online store Amazon and in Indonesia today such as lazada and blibli, which are B2C (Business to Consumer) e-commerce. Where online shops such as Amazon, Lazada or Blibli are the business actors and the public as the consumers.
The advantage of running a B2C (Business to Customer) type of business is that there is no need for a physical store. But the complexity and cost of logistics can be a barrier to the growth of this B2C e-commerce business model. However, even though this type of business does not need a physical store, it still requires a warehouse for stock items if there are a lot of items being sold.
C2B (Consumer to Business)
For this type of project, a consumer project actor with a set budget online and within hours the company reviews the consumer’s requirements and makes an offer on the project. Consumers can conduct bid reviews and choose which company will complete their project. You can see these actors on the Freelancer’s site.
C2C (Consumer to Consumer)
There are many sites that offer free advertising, auctions, and forums where individuals can easily buy and sell directly with use online payment system such as PayPal or bank transactions, where people can send and receive money online easily. The eBay auction service is a good example where consumer-to-consumer transactions have been taking place every day since 1995. In Indonesia, this type of business is also quite a lot, you can see an example of this C2C business like in online buying and selling site tokopedia, buk Bukalapak, olx and also fjb kaskus, where the seller and buyer are individuals and can also act as consumers and direct businessmen. So you can also join to do business online by selling your goods through the site and at the same time you can also become a buyer from other sellers through these C2C sites.
For C2C business service providers, they usually take advantage of transaction commissions through joint account payments and even they are not pure C2C because these service providers also sell services from third parties from telecommunications operators such as selling credit, paying insurance, tickets, electricity and still much more even you can buy a HOOQ streaming voucher at tokopedia.
And those are some explanations about various types of eCommerce businesses, hopefully this article is useful and adds to your insight. 🙂