Running Head: E-COMMERCE 2
The Different Types of Electronic Commerce
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Author Note
The introduction of the Internet has modified the way people interact in different spheres. Not only has the communication changed, but also has changed the way people transact business has been significantly influenced by the Internet. E-commerce refers to the process of buying or selling using the internet. Initially, e-commerce was mainly used for buying or selling of services like buying digital music tracks et cetera. However, e-commerce has evolved to include buying and selling of goods. Also, money transfer through the Internet falls under e-commerce. E-commerce can also be referred to as internet commerce or electronic commerce. Internet commerce can be classified into different categories. This paper discusses these types of electronic commerce.
Business-to-customer
Business-to-customer commerce refers to the type of business transactions that involve the interaction of the buyer and the seller directly without a middleman. This is the most common type of e-commerce. An example of this type of business is Overstock. Overstock was established in 1999, and its headquarters are in Midvale, Utah near Salt Lake City. The business mainly deals with home supplies ranging from furniture to kitchen supplies. The business also deals with pets and electronic gadgets (Overstock.com, 2019). Overstock fits into e-commerce since most people are often busy to go and physically search for home supplies. Instead, they can look for them online, order them, and get them delivered to their home.
Business-to-Business
Business-to-Business commerce is similar to B2C, but this type deals with business companies instead of a single customer. An example of B2B e-commerce is Flexfire LEDs. Flexfire LEDs deals exclusively with providing LED interior and exterior lights to different businesses including major hotels like Hilton, Mariotte properties, Bellagio Villas and even embassies (Flexfire LEDs, 2019).
Consumer-to-consumer
In Consumer-to-consumer (C2C) e-commerce, a third party creates a platform that allows its users to buy and sell. The website seller pays a small fee as a commission to the owner of the website. An example of such a platform is OLX. OLX was founded in 2006 and operates in 45 different countries (OLX, 2019). C2C fits in e-commerce since it eliminates a company’s liability in case the product fails. The decision to buy rests solely on the customer.
Mobile e-commerce
Mobile e-commerce involves the use of mobile devices like cell phones, smartphones, PDAs, and tablets to conduct business transactions. M-commerce may include mobile banking, mobile money transfer, and buying of goods and services using mobile devices. An example of this type of mobile commerce is M-Pesa. M-Pesa is mobile phone-based e-commerce introduced in 2007 by Safaricom in Kenya. M-Pesa is also run by Vodafone in Tanzania. The Mpesa service has also been established in other countries. These countries include South Africa, Romania, Afghanistan, and India. M-Pesa offers a range of services like a customer to customer money transfer, mobile banking through integration with other banks, and recently, Safaricom introduced an overdraft facility, Fuliza (M-PESA, 2019). This type of money transfer fits e-commerce since mobile phones have become a crucial part of our daily lives and increase security by reducing the risk of losing money, or being pickpocketed.
In conclusion, e-commerce is growing fast. Various businesses should adopt this type of business as it is easier and less cumbersome to the customer. Also, e-commerce has enabled customers to enjoy the experience of the transaction like withdrawing money from the bank and buying goods or services while at home. Thus, e-commerce becoming a crucial part of our day to day life.
References
Overstock.com: Online Shopping – Bedding, Furniture, Electronics, Jewelry, Clothing & more. (2019). Overstock.com. Retrieved 21 February 2019, from https://www.overstock.com/about
Flexfire LEDs, Inc in Tustin, California | LED Strip Light Distributors. (2019). Flexfireleds.com. Retrieved 21 February 2019, from https://www.flexfireleds.com/about/
M-PESA – Mobile Money Transfer Service, KCB M-PESA Account, KCB Mobile Banking, KCB Mobile Loan – Safaricom. (2019). Safaricom.co.ke. Retrieved 21 February 2019, from https://www.safaricom.co.ke/personal/m-pesa/
OLX – Buy and Sell for free anywhere in Nigeria with OLX online Classifieds. (2019). Olx.com.ng. Retrieved 21 February 2019, from https://www.olx.com.ng/