What Do B2B, B2C and C2C Mean in eCommerce?

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By CKMAdmin

What Do B2B, B2C and C2C Mean in eCommerce?

Although e-commerce, similar technologies and applications are identical, according to the parties, There are nine different types of businesses, business-to-consumer, business-to-state and consumer-to-state eCommerce.

Business to Business (B2B)

As the electronic business world continues to multiply, the future success of businesses worldwide increasingly depends on organisations’ collaborative business capabilities and their work at Internet speeds. To survive in the new economy, establish an appropriate balance between business practices and information technologies. The right balance between business processes and technology can only achieve the success of a new generation of enterprises. While some businesses were restructured to create more positive output, some have shrunk. Some have developed a set of strategies that include modern technology to leverage the opportunities of e-commerce, which empowers customers and suppliers and creates new markets and opportunities. As part of this strategy, B2B e-commerce refers to transactions between businesses electronically over the Internet, extranet, intranet or private networks. This may be possible if two or more enterprises electronically share information in their systems directly or indirectly. Although transactions are in real-time, the collection and sharing of information from companies may not be in real-time.

B2B e-commerce, which includes communication and economic activities between main business and business partners, is not directly addressed to the end consumer but needs to be known more by the public, but covers a large part of all commercial activities over the Internet.

The booming factors behind the rapid growth of B2B e-commerce were the globalisation of the market, the increase of dynamic business relations, the elimination of price differences, the need to cooperate in new product development, to increase the efficiency of the workflows of the enterprises, to reduce the operating costs and to give quick reactions to the demands. Real-time collaboration and the transfer of business process management to the online environment have brought the mentioned advantages. Advances in information technologies increase the efficiency of the activities carried out by enterprises, the efficiency of management information processes, and the company’s profitability. B2B e-commerce has been snowballing since 1997. It has changed the economy by creating increasingly more efficient trading efficiency and transparent markets.

In 2015, B2B sales in the US reached $ 780 billion, 9.3% of all B2B sales, while B2C e-commerce sales were projected to reach $ 305 billion. While the growth rate in B2B e-commerce was 19% compared to the previous year, this rate was 17% for B2C e-commerce. B2B e-commerce sales in the US by 2020 are expected to reach $ 1.13 trillion. From a global perspective, B2B e-commerce sales will reach $ 6.7 trillion by 2020, exceeding twice the level that B2C e-commerce will reach. Global B2B sales are expected to have an online component of 27% in the next 5 years.

Business Consumer (B2C) Electronic Commerce

Business-to-consumer (B2C) e-commerce; means that the customers sell their goods and services to their customers through electronic means such as the Internet, mobile phone and TV. In this trade model, businesses can sell a wide range of product groups, from computers to cars, books to food and drink and a wide range of services such as banking, insurance and stock, without intermediaries.

In general, there are two types of players in the B2C model;

The first player is the companies that did not exist physically before and only operate in an electronic environment. While companies such as Amazon.com and hepsiburada.com are not involved in physical assets, they continue their commercial activities in the electronic environment globally. The other player is the virtual market with comprehensive websites and virtual display cases.

Are traditional enterprises that continue to enter? Ecommerce for these businesses,

rather than a new sales channel

and services through electronic media. Walmart and Gap are examples of companies active in B2C e-commerce. The main advantage of these sites and companies is that they offer customers a physical space to return the product they receive and receive direct customer service.

Although the B2C e-commerce model shows significant potential for rapid development and frequency of shopping, its share in the entire e-commerce pie still needs to grow. But, The increasing use of information technologies in the banking sector and the spread of e-banking increased the importance of the B2C e-commerce model.

Consumer to Consumer (C2C)

With the rapid development of information technologies, especially in the Internet and mobile field, e-commerce has ceased to be the only inter-business or enterprise-consumer between consumers and other consumers. It is a model in which consumers can use their credit card or money transfer method under certain conditions, primarily when used on a trustworthy website. The C2C model also has an auction process. A lower limit determines the number of limited goods the seller sells. The time limit at the end of this period is sold to the highest bidder. The company that established this infrastructure also receives commissions on the sales transaction. In other words, the company in the C2C model brings together only buyers and sellers. This trade model is developing rapidly in our country, and gittigdiyor.com is a good example.

In C2C, two or more people come together electronically to negotiate goods or services. In this case, because the reliability of the sellers is difficult to determine by buyers, such problems have been solved mainly by trusted companies such as eBay.com and gittigidiyor.com or through online security and trust services companies such as escrow.com and safebuyer.com.

In the electronic commerce model, the element of trust is often even ahead of the price, and the importance of security and trust companies in developing the model is increasing.

Government to Consumer (G2C) Electronic Commerce

It is the electronic commerce between the State and the consumers. The G2C is still under development. The main factor determining the degree of action is how the public sector transitioned to the online system. In line with the development of both the B2C and G2B types of electronic commerce, states have attempted to bring the collection of social payments and self-appointed tax revenues into the electronic environment. Again, the use of a management website by consumers who want to obtain information about the health services of the State can be given as an example of this category. With the transition to e-government, it is expected that there will be many positive effects, such as computerisation of transactions without waiting queues, a transformation of public sector personnel number and structure, reduction of stationery expenditures, transparency of transactions and prevention of corruption in this way.

Government-to-Business (G2B) Electronic Commerce

It is the e-commerce format of businesses and public institutions on the Internet. The first examples of public procurement are on the Internet and companies bidding in the electronic environment. In this developing e-commerce category, States are now striving to promote the development of electronic commerce by moving their activities quickly to the virtual world and using electronic options such as VAT income and corporate tax payments.