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Business models and advantages of E-commerce


Business models and advantages of E-commerce

In the previous post we recalled the concept of e-commerce , the difference between the presence of a company on the Internet and an electronic commerce and what the websites that base their business on this activity are made of. We will continue along the same lines, talking about the business models that exist to set up an e-commerce . It is essential to know how to choose the appropriate business model depending on the activity on which we are going to focus, but we must mainly start by defining who we are going to sell to, so we can know what type of e-commerce will be ours. The e-commerce business models or types that exist are: – B2B (Business-to-Business) : Risk Managers Email List that do business with each other. Business-to-business applies to the relationship between a manufacturer and the distributor of a product and also to the relationship between the distributor and the retail trade, but NOT to the relationship between the merchant and his end customer (consumer), this relationship The latter would then be adjusted to the B2C (business-to-consumer) environment.

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– B2C (Business-to-Consumer) : Companies that sell to the general public, to consumers as natural persons. – C2C (Consumer-to-Consumer) : Platform from which consumers buy and sell among themselves. It is the oldest form of electronic commerce that we know of. These platforms arise as a way to help people to negotiate directly with other people or to be able to buy from companies in a more beneficial way for them. An example is E bay . – B2G (Business-to-Government) : Betting Email List that sell or offer their services to government institutions. Municipalities, councils and other official institutions can contact their suppliers, comparing products and placing orders through a simple and standardized process.

– C2B (Consumer-to-Business): It is the e-commerce business model in which consumers can offer products and services to companies, and companies pay consumers. This business model is a complete investment of the traditional business model (business to consumer = B2C).
We can see the C2B model at work on blogs or internet forums in which the author offers a link to an online business that facilitates the purchase of a product (such as a book on Amazon.com), for which the author could receive affiliate income from a successful sale. Elance was the first C2B model e-commerce site . The advent of the C2B regime is due to the fact that the Internet connects large groups of people to a two-way network; the large traditional media are one-way relationships while the internet is two-way.

The decrease in technology costs; people now have access to technologies that were previously only available to large companies (digital printing and purchasing, high-performance computers, and powerful software). Advantages of electronic commerce: – Expand the customer base by entering a broader market.
– Extend the sales hours 24 hours a day, seven days a week, 365 days a year. Greater convenience for buyer and seller. Traffic is brought from traditional outlets to web gateways , a phenomenon known as showrooming . – Create a competitive advantage . – Reduce costs of production, capital, administration, among others. – Improve communication with customers and effectiveness of advertising campaigns.
– Flexibility in the means of payment. Internet allows you to combine all available payment methods, facilitating both electronic and traditional. Payment can be made in cash -such as cash on delivery-, but above all with bank means -credit or debit card or transfer- or through new intermediaries born on the internet such as Paypal or even bitcoin.

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