Electronic Commerce, better known ,as E-Commerce is the purchasing, selling, and exchanging of goods and services over computer networks, such as the Internet, through which transactions or terms of sales are performed electronically.

There are four main types of E-commerce:

B2B (Business to Business)

These are companies doing business with each other, such as manufacturers selling to distributors, and wholesalers selling to retailers. Pricing is based on quantity of the order, and is often negotiable.

B2C (Business to Consumer)

This form of e-commerce entails businesses selling to the general public, typically through catalogs using shopping cart software. By dollar volume, B2B takes the prize, however, B2C is easier and more familiar for the average individual in regards to e-commerce as a whole.

C2B (Consumer to Business)

With this, a consumer posts his project online with a set budget, 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 sites offering free classifieds, auctions, and forums where individuals can buy and sell, thanks to online payment systems like PayPal. With PayPal, people can send and receive money online with ease. EBay’s auction service is a great example of how person-to-person transactions take place. There are many advantages to be considered regarding the use of e-commerce. For example, it can help increase profits, by increasing sales and decreasing cost. It also allows organizations to do business 7 days a week, 24 hours a day. With this advantage, these organizations are able to have customers all around the world. E-commerce can also help organizations identify new suppliers, partners, and customers.
Think e-commerce is for you? Contact Matts & Davidson today for more information.


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