Based on the parties involved in different transactions, we can differentiate the e-business models in various types.
These are:
- Business to Business (B2B) model
- Business to Consumer (B2C) model
- Consumer to Consumer (C2C) model
- Consumer to Business (C2B) model
- Business to Government (B2G) model
- Consumer to Administration (C2A) model
Business to Business model (B2B)
The B2B model in e-business is all about a business transacting online with other businesses. These sorts of transactions are conducted between two companies. These may be transactions between a manufacturer and a distributor, a distributor and a seller, etc.If a company outsources its business requirements such as shipping, these transactions will be considered as B2B dealings. Here one business serves the other with its services.
Another example of such transaction is a payment gateways business offering its services to the e-commerce platforms or stores.
Business to Consumer model (B2C)
The transactions taking place between the e-commerce platforms and the customers are a part of this model. A simple example of this model is a customer shopping online for his requirements.A retail eCommerce trade or a service provided by a company to the customer is a B2C transaction. The ultimate source of profit for a business arrives from its customer.
Customer to Customer model (C2C)
This model includes transactions between two customers. These transactions mostly involve a third-party platform. For example, some websites and applications allow customers to sell their old goods online and let the other customers buy them.One may wonder that the selling party can be called as a business. But no, he is not a vendor or in business.
Here, the person selling does not carry out the trade process regularly. Thus, his selling activity cannot be considered as a business.
Customer to Business model (C2B)
This is exactly the reverse of B2C model. Here, instead of the business offering something to the client, the customer makes an offering to the business.This offering may be in the form of feedback, crowdfunding, free images, ideas, etc.
Business to Government model (B2G)
Here the transactions are made between the business and the administration. These transactions may include offering various services such as employment, fiscal measures, legal documents, social security, etc.For example, during the setup of an e-commerce business, it has to undergo various legal compliances and paper filing.
Thus, all these legal filings can be categorized under business to government transactions.
Consumer to Administration model (C2A)
In this model, the transactions are carried out between the customers and the public administration. These may include filing taxes, e-filing, sharing of information, learning, etc.This model is majorly to improve the transparency and efficiency of the public administration. This section also includes the communication between and the customers the court.
For example, connecting with consumer complaint forums is a sort of C2A model.
Importance of every model in an e-business
Comprehension of all the models together forms a successful e-business. While the customer is the ultimate king of a business, the government and all other business parties are critical for the support.Furthermore, a connection between the customer and the business gives the company a chance of improvement. Moreover, a business can operate only if it complies with all the legal requirements. Thus, each and every party related to a business is imperative.
You might be wondering, how does the C2C model stand relevant in this case. It is most pertinent to the business models that work as an intermediate. If a customer wants to sell something to the other customers, the intermediate is a business party.
Moreover, you can consider a customer recommending an e-commerce store to the other. This recommendation lets the business make money.
Thus, the C2C business model also stands relevant to an e-business.
Final words
The complexity of the business industry and the emergence of the online market have enhanced the popularity of an e-business. Moreover, the development of e-commerce has further led to the rise of various communication modes.Every model is imperative to the success of an e-business, be it for someone who offers products or be it someone from the service industry.
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