E-Commerce Models

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There are three basic E-Commerce models namely B2B, B2C and C2C. These models are discussed in detail below:

B2B E-Commerce



B2B is the most popular e-commerce model dealing with business to business transactions. B2B marketplaces evolved with the primary goal of matching buyers and sellers, thus enabling the exchange of goods and services. B2B websites help streamline operations between organizations and their business partners. B2B marketplaces offer several benefits:

Efficient management of inventory
Quick response to customer demand
Reduction in the cost of paperwork
Efficient and fast product launch
Control over fraudulent purchases

B2B websites focus on providing solutions to various industries such as the banking, hospitality and automotive industries. These are meant only for business organizations; individuals are not allowed to carryout transactions over such sites.

B2C E-Commerce



The business to consumer (B2C) business model deals with B2C transactions. The ebusinesses that adopt B2C model sell their products and services directly to individual consumers. This E-Commerce model is expected to become more popular when low cost Internet access is available to the masses through mobile phones and other Internet access devices.

B2C websites have to overcome problems like the lack of security of online payments, the scope for fraud, the lack of privacy ' and difficulty in access. More customers can be attracted to these sites by offering personalization, making navigation easy, and providing easy to use applications. In many cases, customers also complain of delayed or missed deliveries. Therefore, by focusing on logistics and supply chain, 132C sites will be able to overcome the problem of order fulfillment.

C2C Model

C2C websites enable the sale and purchase of products and services between individual customers. Individual customers frequently buy and sell products like automobiles (two and four wheelers), furniture and real estate from each other. They can find such products on a C2C site and conduct transactions online. The best example of a C2C E-Commerce model is an online auction site. In 1995, eBay.com pioneered C2C auctions. This site has become one of the Internet's most popular websites. Some of the other popular online auction sites are mortgage.com and bazee.com.



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