The electronic commercealso called e-commerceis a transaction method used to sell, purchase or exchange goods and services through websites, social networks or applications.
Electronic commerce is carried out in virtual stores that are on digital platforms and in which a client or an institution can choose, buy, pay or exchange a product or service.
Most physical stores and big brands have websites especially for e-commerce.
Advantages of electronic commerce:
- Generates that transactions generally have no geographical limits, since you can buy and sell from almost anywhere in the world.
- It allows the number of customers and, therefore, sales to increase.
- It makes it possible to obtain more and better information about the public and about potential customers.
Disadvantages of e-commerce:
- It can present flaws, because virtual stores do not always work well.
- It produces that there are more and more sellers and, therefore, more competition.
- It can imply inconveniences in relation to the security of the personal information of the clients.
Types of e-commerce
The types of electronic commerce are classified according to which entity is the seller and the buyer in:
- B2C. It is the commercial exchange in which a consumer purchases a product or service on a company’s digital platform. For example: A person buys in the online store of a sports brand.
- B2B. It is the commercial exchange between two businesses or companies through a digital platform. For example: A restaurant chain that purchases merchandise from a digital store.
- C2B. It is the commercial exchange in which a company acquires a product or service that a person sells on a digital platform. For example: An artist is hired to advertise a company’s products.
- C2C. It is the commercial exchange that takes place on a digital platform and between two consumers. For example: A consumer buys a comic that someone else is selling on a buy-sell website.
- B2G. It is the commercial exchange in which a government acquires a product or service on a company’s digital platform. For example: A government office purchasing supplies on a company’s website.
- G2B. It is the commercial exchange in which a company acquires a service or a product on a government digital platform. For example: A company purchases a license from a government website.
eCommerce Examples
B2C Examples
- A person pays the gas bill on the website of the company that provides this service.
- The people who contract the service of a platform of streaming.
- A person buying a plate of food from a restaurant through a product delivery app.
- A person who buys clothes in a virtual store.
- A person making a purchase on a supermarket website.
B2B Examples
- A company that buys raw materials to make products on another company’s website.
- A company that purchases office supplies from another company’s website.
- An appliance company buying microprocessors from another.
- A tour company that purchases airline tickets on an airline’s website.
- A bookstore that buys books on a publisher’s website.
C2B Examples
- A business that buys digital drawings from an artist’s website.
- A company that contracts the service of an architect through a professional services application.
- A company that hires a computer designer by email.
- A company that hires a content writer to develop copy for a website.
- A company purchasing furniture from a designer’s website.
C2C Examples
- A person who buys clothes on the social network of a clothing designer.
- A person buying a used TV from a website where users post items for sale.
- A person who buys a necklace on the website of a craftswoman.
- A person who buys a computer published in the profile of a user of a social network.
- A person who rents an apartment in an application in which users offer accommodation in their homes for a certain period of time.
B2G Examples
- The Ministry of Transportation purchasing construction cement on a supplier’s website.
- A department that opens a call for tender on a website and hires the best supplier.
- The Ministry of Education that acquires school manuals on the website of a publisher.
- The Ministry of Health that buys medicines for hospitals on the website of a laboratory.
- The Ministry of the Environment buying posters for national parks on a website.
G2B Examples
- A company that pays taxes on the government website.
- A company that buys a permit to do business on a government website.
- A company that buys a patent for an invention developed in a state research center on a website.
- A company that purchases furniture in a web auction organized by a government office.
- A company paying a fine on a government website.
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References
- Andrade Muñoz, J. (2017). Electronic commerce. Tepexi, 4(7). Available in: UAEH