Types of electronic commerce (explained with examples)

One of the first things you will learn when entering the world of internet sales is that there are different types of e-commerce. Each of them opens up various possibilities for commercial exchanges between large companies, large and small businesses, individuals and even governments.

In this article we will review the types of businesses that exist in the world of online sales, from the most common, to some that you may never have heard of. We will also expose examples of each one, to understand them a little better.

All ready? Let us begin!

What is electronic commerce?

Electronic commerce or (word that comes from electronic commerce). It refers to the commercial transactions carried out entirely online. From the choice of the product by the customer, to the completion of the order, the entire process must be carried out by digital means.

In this type of trade, the only stage in the physical world is logistics to buyers.

In addition to purchasing processes, electronic commerce is mainly based on the dissemination and promotion of products or services —since both can be sold online— through digital marketing. Therefore, this part of attracting customers is also usually done through the internet.

How many types of commerce are there on the internet?

Although it is true that they are usually recognized in four main types of commerce: B2B, B2C, C2B and C2C (we will review them one by one later), technological advances have helped internet sales reach more and more industries. . This expansion has resulted in the emergence of new types of e-commerce.

Next, we are going to explore together each of the seven types of e-commerce and, in the process, we will review some examples and opportunities in each case. 🛒

7 types of e-commerce and examples

1. B2B eCommerce

For its acronym in English, business-to-business (business to business) refers to a business transaction between two companies that have presence and operations on the internet. End consumers are not involved in this type of business.

In order to participate in this type of electronic commerce, it is advisable to have previous experience in commercial relationships with other brands. It is also suggested to have logistics that are robust enough to be able to satisfy the needs of the clients, that is, the others.

Another important point is to make sure your tax situation is in order, so you will avoid problems operating, issuing invoices and declaring taxes.

B2B Examples

Some of the most common examples in B2B e-commerce are:

1. A company that makes wholesale purchases from another company.
2. Platforms to create and manage online stores, such as .
3. A virtual store that acts as an intermediary between a supplier and the final customers. This business model is known as .

La Tiendanube, for example, is a sustainable B2B company that produces corporate products such as bags, wallets, etc. It should be noted that it also sells to the final consumer (B2C), since it allows both options.

Delve into this business model:

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2. B2C eCommerce

electronic commerce business-to-consumer (business to consumer) promotes commercial relationships between businesses of any size and consumers. The and the marketplaces fall into this category.

This type of trade is aimed at satisfying the needs of the end customer, so customer service should be a priority for companies that are part of this classification.

B2C Examples

In B2C businesses we find intermediaries that facilitate the commercial exchange between company and client, some examples of this type of e-commerce are:

1. The marketplaces such as Mercado Libre, Amazon or Linio.
2. The virtual store of a company that sells retail, such as Walmart.
3. Companies like Spotify or Netflix, which offer a service to their customers.

An example of a Tiendanube in B2C e-commerce is , a stationery and publishing brand that offers products with original designs.

Explore more about these two types of eCommerce:

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3. C2B eCommerce

electronic commerce Consumer to Business (consumer to business) refers to those transactions in which consumers or professionals who work independently offer their services or products to companies.

This type of electronic commerce has become increasingly common, thanks to the use of digital media such as , social networks, videos and .

C2B Examples

Here are some examples of this type of e-commerce.

1. A photographer, professional or amateur, that to an image bank like .
2. A person who participates in market research paid for by brands.
3. One that receives a commission for each person who visits a link posted on one of their social networks.

4. C2C eCommerce

The last one that we could consider among the most traditional or well-known types of e-commerce is electronic commerce. Consumer-to-Consumer (consumer to consumer).

As its name implies, C2C commerce occurs when exchange takes place between consumers and there is no type of company involved. It is a more informal transaction and, regularly, at lower prices than in other types of commerce.

C2C Examples

In this category, it is very common (although not exclusive) to find sales of used products.

1. A person who advertises their car on the Facebook Marketplace or on used product sales platforms.
2. Sites like Etsy or eBay, where anyone can register and sell their products.
3. Airbnb is also an example of C2C e-commerce as it facilitates transactions between individuals.

Learn more:

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5. G2C eCommerce

Government-to-Consumer (government to consumer) is the classification of electronic commerce in which digital monetary transactions are carried out between governments or administrations and consumersthrough official portals.

As for the advantages of this type of commerce —in addition to the security and speed of carrying out procedures— it is that the consumer has access to the payment platforms at any time and from any place.

G2C Examples

At first glance, it may seem difficult to find examples of G2C e-commerce, but the reality is that almost everyone has used them at some point.

I met some below:

1. Digital procedures with cost, for example, the payment of the driver’s license.
2. Payment of vehicle fines.
3. A business that pays its taxes through the AFIP portal.

6. B2G or B2A electronic commerce

The category business-to-government (business to government), also known as Business to Administration (B2A), is one in which a government entity buys digital goods or services from companies through electronic commerce.

Examples of B2G or B2A

This type of e-commerce is much more common than you can imagine, here are some examples:

1. A design agency developing identity for a government campaign.
2. When the government hires a company to develop a website.
3. The sale of urban furniture for the improvement of a public area.

7. B2E eCommerce

Lastly, e-commerce Business-to-Employee (business to employee) refers to purchases that companies make for their workers.

This is a fairly common strategy in the world of work, especially in competitive markets where there is a lot of staff turnover.

B2E Examples

1. When a company pays for a software license so that its employees can use it.
2. The prepaid medicine payment that a company makes for its employees.
3. The purchase of equipment that a company makes so that its employees can work remotely.

conclusion

Now that you know a little more about each of the types of e-commerce that exist, you can compare them and choose the one that most appeals to you to start planning your business.

And while the ideas begin to arrive, here we tell you what almost nobody tells you (and you definitely should know) about doing, from how to charge and make shipments, to the legal aspects that you should take into account if your business is in Argentina.

Create your free online store now!