Unit 1.3
Types of E-commerce
IT 204: E-Commerce
Learning Objectives
By the end of this chapter, you will be able to:
- ✅ Identify and define the primary types of e-commerce models.
- ✅ Differentiate between B2C, B2B, C2C, and P2P e-commerce.
- ✅ Explain the significance of Mobile Commerce (M-commerce).
- ✅ Recognize real-world examples of e-commerce types, especially within Nepal.
1. Business-to-Consumer (B2C)
Definition: Businesses selling products or services directly to individual consumers.
This is the most traditional and widely recognized form of e-commerce.
🛒 Classic Example:
You purchase a new pair of headphones from an online retailer like Amazon or Best Buy.
2. Business-to-Business (B2B)
Definition: Businesses selling products, services, or information to other businesses.
- Transactions between companies.
- Often involves larger quantities.
- Can include more complex negotiations and contracts.
🏢 Example:
A construction company purchasing bulk cement from a manufacturer's online portal.
3. Consumer-to-Consumer (C2C)
Definition: An online platform facilitates transactions between individual consumers.
The platform provider typically earns revenue through listing fees or commissions.
⚡ Key Idea: C2C empowers individuals to become sellers, creating vast marketplaces for new and used goods.
🤝 Example:
Selling your old video game console to another person on eBay or Facebook Marketplace.
4. Peer-to-Peer (P2P)
Definition: Individuals connect to share or rent assets and services directly with one another.
P2P is the engine of the "sharing economy."
Distinction from C2C:
- C2C: Focus on selling a product.
- P2P: Focus on sharing/renting an asset or service.
🏡 Example:
Renting out a spare room in your home to a traveler using Airbnb, or offering a ride with Uber.
📊 At a Glance: B2C vs. B2B vs. C2C
B2C
- Participants: Business → Consumer
- Focus: Product/Service Sales
- Example: Daraz
B2B
- Participants: Business → Business
- Focus: Wholesale, Supplies, Services
- Example: Alibaba
C2C
- Participants: Consumer → Consumer
- Focus: Second-hand Goods
- Example: Hamrobazar
5. Mobile Commerce (M-commerce)
Definition: Any e-commerce transaction conducted using a wireless mobile device, like a smartphone or tablet.
📱 Important: M-commerce is not a separate business model, but rather a channel. It can be B2C, B2B, or C2C, but happens on mobile.
- Rapidly growing segment of all e-commerce.
- Driven by high smartphone penetration.
- Includes in-app purchases, mobile banking, and mobile wallets.
🔍 Application: E-commerce in Nepal 🇳🇵
All major e-commerce types are active in the Nepali market.
- B2C: Dominated by platforms like Daraz and Sastodeal.
- B2B: Growing sector. Example: Foodmandu offers corporate catering services.
- C2C: Extremely popular via Hamrobazar and Facebook Marketplace for used goods.
- P2P: The sharing economy is thriving with ride-sharing apps like Tootle and Pathao.
- M-commerce: The primary way people shop online, with most platforms being mobile-first. Social commerce on Instagram/TikTok is also huge.
🎯 Key Takeaways
- E-commerce is categorized by the participants in the transaction: B2C, B2B, C2C, and P2P.
- B2C is the most common model, while B2B often involves larger, more complex sales.
- C2C and P2P models empower individuals to sell goods and share services, respectively.
- M-commerce is the channel (the "how"), not the model (the "who"), and it is the dominant form of e-commerce in many regions, including Nepal.