Unit 1.3
Types of 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.
Parcels on the Way
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.
📊 The Hidden Giant: B2B
- UNCTAD estimated global e-commerce sales at about US$26.7 trillion in 2019.
- Of that, about US$21.8 trillion (around 82%) was B2B. B2C was only about US$4.9 trillion.
- Most B2B sales happen on supplier portals and EDI links that shoppers never see.
B2C is the most visible type of e-commerce. B2B is by far the biggest.
🎬 Watch: Alibaba.com, Built for Bulk
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.
🧮 Worked Example: How Does a C2C Platform Earn?
A C2C site has 10,000 listings a month. It charges sellers in two ways (example figures):
- Featured listing fee: 1,000 sellers pay Rs 200 to appear at the top = Rs 200,000.
- Commission: 2,000 items sell at an average of Rs 5,000, with a 5% commission = 2,000 × Rs 250 = Rs 500,000.
- Total: Rs 700,000 a month, without owning a single item.
The platform's product is trust and traffic, not goods. Many free C2C sites earn from featured listings and ads instead of commission.
🎮 Classification Game: Nepal Platforms
Note: chips still include Sastodeal (closed 2024) and Tootle (discontinued); treat them as historical labels.
Click a platform chip to select it, then click the correct e-commerce type bucket.
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.
🎬 Watch: How the Sharing Economy Works
🔄 One More Type: Consumer-to-Business (C2B)
Definition: Individuals sell products, services or content to businesses. The usual direction is reversed.
- 📸 A photographer sells photos to companies through stock sites like Shutterstock.
- 💻 A freelancer in Pokhara builds websites for foreign firms through Upwork or Fiverr.
- 📢 An influencer is paid by a brand to promote its product.
Test: who is the seller? If it's an individual and the buyer is a business, it's C2B.
🏗️ Model Builder: Which Model Fits?
📊 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
📋 Interactive Comparison: B2C vs B2B vs C2C
Note: the B2C examples cell still lists Sastodeal; it closed in 2024.
| Type | Participants | Order Size | Relationship | Payment Method | Nepal Example |
|---|---|---|---|---|---|
| B2C | Business → Consumer | Small (1–few units) | One-time / anonymous | eSewa, Khalti, COD, Card | Daraz, Sastodeal |
| B2B | Business → Business | Large (bulk / wholesale) | Long-term contracts | Invoice, Bank Transfer, LC | Foodmandu Corp, Alibaba |
| C2C | Consumer → Consumer | Variable (used items) | Peer marketplace | Cash, eSewa, Khalti | Hamrobazar, FB Marketplace |
🏛️ Government Joins In: B2G and G2C
B2G: Business-to-Government
Firms bid for government contracts online.
Nepal: the Public Procurement Monitoring Office runs electronic bidding (e-GP) for public tenders.
G2C: Government-to-Citizen
Citizens pay for or get public services online.
Nepal: the Nagarik App gives access to services such as PAN and records; many fees can be paid through wallets.
The same test applies: name the seller and the buyer, and the type follows.
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.
📱 M-Commerce Feature Explorer
Note: one example still says "Pathao / Tootle"; Tootle is discontinued — use Pathao.
← Click a feature to explore what it enables in M-commerce.
🎬 Watch: India Pays by QR
🔍 Application: E-commerce in Nepal 🇳🇵
All major e-commerce types are active in the Nepali market.
- B2C: Dominated by platforms like Daraz and Sastodeal (closed 2024).
- 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 Pathao (Tootle is discontinued).
- M-commerce: The primary way people shop online, with most platforms being mobile-first. Social commerce on Instagram/TikTok is also huge.
🧩 Real Case: One Platform, Many Types
Look at Amazon:
- B2C: Amazon sells its own stock to you.
- Marketplace: independent sellers sell to you on Amazon's site; by 2023 third-party sellers made up about 60% of units sold.
- B2B: Amazon Business sells supplies to companies, and Amazon Web Services rents computing to firms.
- M-commerce: most of it happens in the app.
Daraz works the same way: its own Daraz Mall brands plus thousands of small sellers. Real platforms mix types.
💡 Revenue Model Quiz
🙋 Quick Poll: Name the Type
Hands up for B2C, B2B, C2C, P2P or C2B.
- A hotel in Chitwan orders 200 bedsheets from a textile factory's website.
B2B - You rent your camera to a classmate for a weekend through an app.
P2P (sharing an asset, not selling it) - A student sells a logo design to a start-up through Fiverr.
C2B - You sell your old bike on Hamrobazar.
C2C
🎯 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.
💬 Discuss in Pairs (3 minutes)
1. Is an Instagram clothing page run by a student B2C or C2C? What would change your answer?
2. Why might a Nepali start-up choose B2B over B2C, even though B2C is more visible?
3. M-commerce is "the how, not the who". Give one example of B2B that happens on a phone.
Exam Practice 📝
Short answer
- Distinguish between B2C and C2C e-commerce with examples.
- What is C2B e-commerce?
- What is m-commerce?
Exam Practice 📝 (continued)
Long answer
- Explain the major types of e-commerce based on market relationship and technology platform, with examples from Nepal.
- "E-commerce types overlap." Discuss this statement with examples.
Revise the answers in the full note.
Image & Video Credits
Images
- Parcels delivery van, Brisbane: Kgbo, CC BY-SA 4.0 (Wikimedia Commons)
- Distribution centre (J Sainsbury's): Nick Saltmarsh, CC BY 2.0 (Wikimedia Commons)
- Birgu flea market: Continentaleurope, CC BY 4.0 (Wikimedia Commons)
- Smartphone in hand: Dennis Cortés (Unsplash), CC0 (Wikimedia Commons)
- Kathmandu old city: Francisco Anzola, CC BY 3.0 (Wikimedia Commons)
Videos (YouTube)
- WebFX, "How to Sell on Alibaba - An Alibaba Overview" (11–66 s)
- The Learning Studio, "The Sharing Economy Explained | Uber, Airbnb & Beyond" (41–108 s)
- NBC News, "QR codes boom in India" (11–92 s)
Thank You
Any questions?
Next Topic: Unit 1: Case Study: Neighborhood Grocery → Online Orders During COVID