Electronic Commerce | E-Commerce or Ecommerce | Part 2

Electronic Commerce | E-Commerce or Ecommerce | Part 2

Types of E-Commerce

Business-to-business (B2B)

Business-to-business could be the transmitting of data with regards to commercial transactions in electronic format, typically utilizing technologies such as Electronic Data Interchange (EDI), which was created in the late 1970’s in order to digitally deliver information for example purchase orders as well as invoices.

It later on proceeded to incorporate activities that may more accurately be termed “Trade in the network” as the acquisition of services and goods on the Internet by way of secure servers (HTTPS, an exceptional server protocol that encrypts confidential ordering to conclusion of the process, the vitally important consumer protection and data concerning the organization) utilizing electronic payment services pertaining to credit card authorizations or which is refered to as the ‘electronic purse’.

The B2B continues to be powered additionally through the development of portals to get lots of buyers. Therefore we now see online, for instance the automotive business portals, foodstuff, chemicals, and hospitality portals, and the like. The businesses collectively create these types of sites permitting them to work out much better conditions. The constant maintenance of the sites and pages within the sites can be managed by asking a fee for quoting, or even asking for a fee from the members of the online business in the portal.

In general, the definition of business-to-business is just not restricted to the electronic environment, however that exclusion is really a reference to emphasize the foundation as well as destination of the activity, antagonism relates neither to B2C nor B2G, and so on.

Simply by means of establishing a reference example, the business-to-business relates to the connection between a manufacturer together with distributor of a product and also the relationship involving the distributor and retailer, etc. It also relates to the relationship involving the service provider and the end user (consumer); regarding the latter (business tot consumer) would then be the environment of the B2C (business-to-consumer).

Business to Business or B2B relationships suggests that the enterprise has with its suppliers for the supply, planning as well as overseeing of production, or perhaps help with growth and development of the product, or perhaps reports that ‘ holding company with professional clients, i.e., other firms situated in various areas of the production chain.

The amount of B2B transactions is a lot greater than those of B2C transactions. One particular cause is the fact that businesses now utilize e-commerce systems a lot more than done by the consumers. In addition, inside a typical supply chain, there are lots of B2B transactions however there is just one B2C transaction, since the completed product or service is actually sold retail to the consumer.

For instance, the commercial relationship between a manufacturer along with a wholesaler is a B2B association. The direct relationship between manufacturer as well as wholesaler, on the other hand, in addition to customer / consumer / home enduser, is alternatively referred to as B2C. An additional illustration of the B2B transaction is presented by a chicken feed business selling the products at a chicken farm, which can be another company.

An additional example of a B2C transaction can be a food store which markets chickenfeed — cereal to the customer. B2B may also illustrate marketing activities between businesses, not merely the ultimate transactions which be a consequence of marketing, even though phrase may actually be employed to determine commercial transactions in between businesses (and this is generally known as ‘institutional sales’). As an example, it is more likely that a business which markets photocopiers will be identified with a commercial business of B2B rather than B2C.

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Business to Business: This phrase had been initially coined to explain associations of electronic communication in between a business and a different company, to distinguish them from communication relationships in between organizations on the one hand and customers on the other. Consequently, nonetheless, the expression is here to be used in marketing, at first it was used simply to explain industrial marketing or capital goods. Today, however, the term is widely used to describe all products and services used by businesses.

B2B – Advantages

Electronic commerce between companies is a utility that provides Internet more and has experienced a boom in recent years.

A few of the benefits of the business-to-business for businesses associated are:

  • Fast as well as secure communications.
  • Direct integration associated with transaction data in computer systems company.
  • Ability to obtain a lot more offers and demands, boosting competition.
  • Depersonalization of purchase therefore avoiding possible favored treatment.
  • Depreciation of the process: a lesser number of sales calls, negotiating process quicker, and so on. Therefore, customers can ask for a price reduction because of the lower costs associated with management, or vendors to improve their profit margin.

Business to Employee (B2E)

Business to Employee (B2E), which is a part of B2C and B2B, is really a type of marketing within organizations, in which the introduction of Internet and Intranet provides employees precisely the same speed of access to information that can also be given to the buyers. Nevertheless in its infancy, this idea is reflected currently in e-Recruitment and E-Learning.The literal translation of B2E would be “Deal with the employee” as well as it refers to the work of internal information in a strategic approach, since its establishment, provision and upgrade into the context and the internal marketing plan.

‘Business to business’ and ‘business to consumer’ (B2B2C)

B2B2C designates a kind of electronic commerce such as the B2B (business to business) as well as B2C (‘business to consumer’). This can be a much more advanced model of what may be the simple superposition of the two businesses. With the same online platform and the same distribution platform is about creating the entire value chain from a product or service is produced until it reaches the final consumer.

The B2B2C, which is also used in some cases to define the market called “market bias” on the Internet, online platforms which focus on both commercial transactions between businesses as well as between businesses and consumers. Generally, these types of markets are usually diagonal provided by manufacturers or wholesalers who provide a differentiation of prices and trading conditions as in the case of a purchase to a retailer or distributor (which could be another company) or a final consumer or citizen.


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