Electronic commerce or E-commerce is terms of sale or transactions performed electronically. It involves exchange, selling and purchase of services or goods against money. The entire task is performed through computer networks and the internet. E-commerce, on contrary to popular belief not only exists on the web but has been there since the 1970s and doing fabulously in business to the business transaction through Value Added Networks (VAN) and Electronic Data Interchange (EDI). There are four main categories that E-commerce is divided into, namely, C2C, C2B, B2C, and B2B.
About different categories in details
- Business to Business (B2B): In this type of e-commerce business in the USA, it deals with companies conducting business with one another. For example, manufacturers selling products to distributors, as well as wholesalers selling to retailers. Pricing in this structure is based on the number of orders.
- Consumer to Business (C2B): For example, assignments or projects posted by the consumer on the net through websites and forums. A budget is set online by the consumer where customer requirements are reviewed upon by several companies within hours of the posting. Then the project is bid upon. Customers across the globe are empowered by being provided with a platform to carry out that transaction.
- Business to Consumer (B2C): Typically, it involves selling services and products to consumers or the general public using shopping cart software and catalogs. B2B based companies can earn good amount of money. But the average customer when takes into consideration e-commerce as a whole considers B2C as the main one. With e-commerce, it is possible to purchase several items and services at a time without requiring any human interaction. For example, finding a particular book at physical stores can be a tiring time. But going online and checking out the different e-commerce sites do enable the person to get the same quickly, effortlessly, comfortably and also enjoy huge discounts on it.
- Consumer to Consumer (C2C): According to the industry experts, eBay is the best example of this category, where products are sold by consumers to other consumers directly through bidding. The person bidding the highest is able to buy the product. The other example is the sites that offer free classified ads, forums, and auctions, allowing consumers to sell and buy products to others. For web payment system, PayPal is the preferred mode to send and receive money, without any hassle.
Apart from the above mentioned four categories, there is also a fifth version, which is Business to Employee or B2E e-commerce. Here, employees are offered by their employing companies with services and products through an intranet. This might not necessarily involve online.
There are also other e-commerce forms carried out across the globe like Citizen to Government (C2G), Government to Employee (G2E), Government to Government (G2G), Government to Citizen (G2C) and Business to Government (B2G). Transactions carried out in such categories involve the government, ranging from the filing of taxes to procurement, renewing a license to business registration. Also are present other types of categories, however, are considered to be superfluous. Going through the best e-commerce companies list USA will help to know more.