TYPES OF ELECTRONIC COMMERCE

Based on the parties involved in electronic transactions, the e-commerce can be classified
into the following types.
a) Business –to- Business (B2B)
b) Business –to- Consumer (B2C)
c) Consumer –to- Consumer (C2C)

a) Business –to-Business E-Commerce
This is done between business firms. For example, electronic transactions between a
manufacturing firm and its supplier firms are B2B transactions. This segment is the largest and
the fastest growing one in electronic, commerce. Here firm use the electronic network for
purchasing products, consulting services and paying for them.
b) Business –to- Consumer E-Commerce
Consumers check electronic catalogues to learn about products and compare prices of
products sold. They purchase products at the firm’s website and may pay electronic cash or
other means like credit card.
c) Consumer –to- Consumer E-Commerce
Some sites offer consumers to deal directly with each other. Auction sites are examples.
At these auction sites consumers can buy and sell products.

Electronic commerce is useful to both producers and consumers as it helps them
overcome the traditional barriers of distance from markets and lack of information about market
opportunities. Producers and traders no longer need to maintain physical establishments
requiring large capital outlays. Virtual shops and contact points on the Internet may enable
storage close to the production site and distribution can be made directly to the consumer.
Increased advertising possibilities world wide may help small and medium industries and
businesses that traditionally find it difficult to reach the consumer abroad. E- Commerce may
also enable such firms to eliminate middlemen while trying to sell their products abroad.