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E-Commerce is defined as the buying or selling of goods and services online. The transactions can occur between a combination of Businesses, Individuals, and Administrations. E-Commerce Website design services have become the need of the hour as it is the platform that nearly 86% of the population accesses. It can be broadly classified into 6 types.
Business to Business Model – B2B
In this model, two or more organisations give each other business. End consumers are left out of the transactions. B2B is the largest E-Commerce model, valuated at 12.2 Trillion US Dollars, as of 2019.
The ability to process everything online has reduced the immense amount of paperwork involved in regular B2B business models. Buying efficiency has greatly improved as processes are automated. Businesses actively seek E-Commerce Website Design services to facilitate transactions for them.
E.G: The automobile industry is a good example here. The transactions would take place online between the vehicle manufacturer and the businesses that supply the parts.
Business to Consumer – B2C
The B2C model involves online transactions between a service provider or product supplier, the business, and their end consumer. Any form of Retail E-Commerce platform falls under this category.
This business model has proved well for retailers and other small business owners, as they can reach a global audience. No more do the limitations of space or location exist for them. B2C accounts for about 3356 Billion US Dollars in 2019, expected to hit 3667 Billion USD in 2020. This Business model is one of the main reasons for the growth of E-Commerce website design services.
E.g: Examples are platforms like Amazon or Big Basket that deliver their goods directly to the consumers.
Consumer to Consumer – C2C
In this model, the consumers directly transact with each other. There is no company involved, or if there is, the business only serves as a platform to facilitate the discussion.
The main aim of C2C is to reduce transaction costs by eliminating middlemen. The consumers are also exposed to gently used products under an affordable price range.
E.G: The sale of products through online platforms like quikr, olx is an example of C2C E-Commerce.
Consumer to Business – C2B
This model is when an individual offers their products or services to an organisation, wherein the offer is made over the internet.
The growth of the C2B E-Commerce model has facilitated the growth of freelancers. While earlier people were forced to associate themselves with a brand, C2B gives them the freedom to create a brand.
E.G: A graphic designer who designs the logo for an organisation is an individual offering their services to a business.
Business to Administration – B2A
Any online interaction that happens between a company and a public service administration falls in this category.
Companies deal with large volumes of legal and administrative work. When most of this work is online, it saves them time and reduces the errors of manual paperwork. All data is available online for review. It makes knowledge transfer extremely easy. Even when administrations change hands, there is no fear of loss of data.
E.g: A company HR who registers the employees with online portals of ESI or PF department in the government, is a business that is interacting over an online platform with a public service domain.
Consumer to Administration – C2A
When a private individual interacts on online platforms with a public administration service of the government or an NGO, it is Consumer to Administration model of E-Commerce. The consumer is directly availing the services of the governing body.
This is extremely time and cost-saving for the individual as the paperwork which is prone to human error is removed. This has significantly eased the public image of administrative bodies.
E.g: Examples of this type of E-Commerce are an individual filing his taxes with the IT department. In the case of private institutions, an example would be an individual booking an appointment with a doctor at a private hospital.
E-Commerce website design in India has definitely picked up during the pandemic as even small businesses opt to go online. Open Designs is perhaps the Best E-Commerce development company in India, when it comes to understanding the business model before strategizing.
