Question

List all the E-Commerce business models and explain any four briefly.

Answer 1

Business organizations, Consumers and Government (also called as Administrations) are the major parties in E-Commerce. Sometimes Employees (Informal workers) also indulge in this system. Based upon the entities involved in transaction, E-Commerce has been classified into the following typical categories. The model in which the government plays as an entity is termed e-Governance.

• Business to Business (B2B)-

1. In B2B E-Commerce, commercial transactions take place between different business organizations, through the Internet.
2. For example, a cycle company may buy tyres from another company for their cycles.
3. B2B transaction is high, because of bulk purchases.

• Business to Consumer (B2C) -

1. In B2C E-Commerce, commercial transactions take place between business firms and their consumers.
2. It is the direct trade between companies and end-consumers via the Internet.
3. Example: A book company selling books to customers. This mode is intended to benefit the consumer and can say B2C E-Commerce works as a ‘retail store’ over the Internet.

• Consumer to Consumer (C2C) -
  C2C in E-Commerce provides an opportunity for trading products or services among consumers who are connected through the Internet.
• Consumer to Government (C2G) -

1. Citizens as Consumers and Government engage in C2G E-Commerce.
2. Here an individual consumer interacts with the Government.
3. C2G models usually include income tax or house tax payments, fees for issuance of certificates or other documents. People paying for renewal of license online may also fall under this category.