E-commerce is classified into several types based on the nature of the transaction and the relationship between the participants involved.
Learning Objectives
By the end of this chapter, you will be able to:
- Classify e-commerce by market relationship: B2C, B2B, C2C, and C2B.
- Explain P2P, mobile, social, and local e-commerce.
- Describe government (G2C, G2B) and intrabusiness (B2E) e-commerce.
- Classify real transactions, recognising that one transaction can belong to several types.
- Give Nepali examples of each type.
Classifying E-commerce
E-commerce can be classified in two main ways: by the market relationship (who sells to whom) and by the technology platform used (mobile, social, local). Government and intrabusiness e-commerce are further categories.
flowchart TB
EC[Types of E-commerce]
EC --> MR[Market Relationship]
MR --> B2C[B2C]
MR --> B2B[B2B]
MR --> C2C[C2C]
MR --> C2B[C2B]
EC --> P2P[P2P / Sharing Economy]
EC --> Plat[Platform-Based]
Plat --> M[M-commerce]
Plat --> Soc[Social E-commerce]
Plat --> Loc[Local E-commerce]
EC --> Gov[Government]
Gov --> G2C[G2C]
Gov --> G2B[G2B]
EC --> Intra[Intrabusiness B2E]
Figure 1: E-commerce type taxonomy
1. Market Relationship Classifications
The most common way to distinguish e-commerce types is by charting who is selling to whom:
- Business-to-Consumer (B2C): Online businesses selling products or services directly to individual consumers. This includes retail goods, travel services, and online content. It is the most commonly discussed form of e-commerce.
- Example: A person buying a book from Amazon or groceries from Bhat-Bhateni online.
- Business-to-Business (B2B): Commercial transactions between and among organizations. B2B is the largest form of e-commerce by value; worldwide, online B2B sales are several times larger than B2C sales, because businesses buy in large quantities and buy often.
- Example: A restaurant purchasing raw materials in bulk from a wholesale supplier platform.
- Consumer-to-Consumer (C2C): Consumers selling directly to other consumers, typically with the help of an online market maker or platform provider.
- Example: Selling a used smartphone on eBay.
- Consumer-to-Business (C2B): Individuals who approach businesses with an offer or request for a service, rather than the business targeting the individual.
- Example: Freelancers offering their skills on Upwork, or influencers pitching sponsored content to brands.
2. Peer-to-Peer (P2P)
P2P e-commerce connects individuals to securely share or rent assets and services without needing a traditional central business acting as the seller. This is a key technological component of the modern “sharing economy.”
- Example: Renting out a spare room on Airbnb, or peer-to-peer file sharing protocols.
3. Mobile, Social, and Local E-commerce
Often, e-commerce is classified by the technology platform utilized rather than the relationship:
- Mobile Commerce (M-commerce): Refers to any e-commerce transaction that takes place on a mobile device, such as a smartphone or tablet. M-commerce is currently the fastest-growing segment.
- Social E-commerce: E-commerce that is enabled by social networks and online social relationships, often functioning as a subset of C2C or B2C.
- Local E-commerce: A form of e-commerce that is focused on engaging the consumer based on their current geographic location (e.g., location-based deals from local merchants).
4. Government E-commerce
In addition to commercial entities, governments increasingly utilize e-commerce models to streamline public services.
- Government-to-Citizen (G2C): Governments providing services, tax payments, or information directly to citizens electronically.
- Government-to-Business (G2B): E-procurement platforms where businesses bid on government contracts or pay corporate taxes.
5. Intrabusiness E-commerce (B2E)
Also known as Business-to-Employee (B2E) e-commerce, this includes all internal organizational activities that involve the exchange of goods, services, or information among various units and employees of a single organization. It often relies on an intranet.
Comparing the Main Types
| Type | Seller → buyer | Typical order | Global example | Nepal example |
|---|---|---|---|---|
| B2C | Business → consumer | Small, frequent | Amazon | Daraz, Sastodeal |
| B2B | Business → business | Large, repeated, on credit | Alibaba.com | Distributor ordering apps, e-GP bids |
| C2C | Consumer → consumer | One-off, used goods | eBay | Hamrobazar, Facebook Marketplace |
| C2B | Consumer → business | Skills, content, ideas | Upwork, influencer deals | Freelancers and creators paid by brands |
| P2P | Peer ↔ peer (platform matches) | Rides, rooms, assets | Airbnb | Pathao, inDrive |
| G2C | Government → citizen | Fees, licences, taxes | Online passport forms | Online passport and licence forms, tax payment |
| G2B | Government → business | Tenders, taxes, customs | Government e-tendering | PPMO e-GP, IRD online VAT filing |
Types Overlap
These categories are not exclusive. One transaction can belong to several types at once. A customer who orders a kurta from a Kathmandu boutique’s Instagram page on her phone, using a wallet, is taking part in B2C (by relationship), social e-commerce and m-commerce (by platform), and possibly local e-commerce if she picks it up from the shop. The market-relationship type tells you who trades; the platform type tells you how.
Exercise: Classify These Transactions
| Transaction | Answer |
|---|---|
| A student sells her old textbooks to a junior on Hamrobazar | C2C |
| A hotel in Pokhara orders bed linen from a supplier’s online portal | B2B |
| A taxpayer files income tax online with the Inland Revenue Department | G2C |
| A graphic designer in Butwal is hired through a freelancing platform | C2B |
| Staff of a bank book leave and order uniforms on the internal intranet | B2E (intrabusiness) |
| A family orders groceries from a supermarket app for home delivery | B2C and m-commerce |
| A traveller books a ride home from the airport through an app | P2P and m-commerce |
E-commerce Types in Nepal
In Nepal, all types of e-commerce are present and rapidly growing due to increased mobile and internet penetration:
- B2C: This is the most visible type in Nepal. Leading platforms include Daraz and Sastodeal, which bring a massive variety of consumer retail goods to local buyers.
- B2B: As businesses digitize, B2B platforms are emerging. Traditional phone and visit-based ordering still dominates, but large manufacturers and distributors now give retailers ordering apps, and suppliers bid for government contracts online through the PPMO’s e-GP system.
- C2C: C2C e-commerce is exceptionally popular in Nepal. Platforms like Hamrobazar and Facebook Marketplace are the go-to destinations for buying and selling used vehicles, electronics, and real estate among citizens.
- P2P / Sharing Economy: Ride-sharing platforms like Pathao and inDrive connect individuals who need rides with individuals who have vehicles, driving massive P2P activity in major cities.
- M-commerce: With the massive penetration of smartphones compared to desktop computers, m-commerce is the absolute dominant form of e-commerce in Nepal. Most transactions occur via dedicated merchant mobile apps or social media, frequently facilitated by local mobile wallets like eSewa or Khalti.
- Government (G2C and G2B): Citizens fill passport and driving licence forms online and pay taxes and fees through banks and wallets; businesses file VAT returns online and bid for public contracts through e-GP.
Summary
E-commerce is classified mainly by market relationship and by technology platform. B2C is the most visible type, B2B is the largest by value, C2C and C2B let individuals sell goods and skills, and P2P platforms match peers who share assets such as vehicles and rooms. Mobile, social, and local e-commerce describe how transactions happen, and the same transaction often fits several types. Governments use G2C and G2B e-commerce for services, taxes, and procurement, while B2E covers transactions inside a firm. Nepal has examples of every type, with mobile and social commerce dominant.
Key Takeaways
- Market-relationship types: B2C, B2B, C2C, C2B.
- Platform types: mobile, social, and local e-commerce.
- B2B is the largest type by value; B2C is the most visible.
- One transaction can belong to several types at once.
- In Nepal, m-commerce and social commerce dominate, supported by wallets such as eSewa and Khalti.
Discussion Questions
- Why is B2B e-commerce larger than B2C by value, even though B2C is more visible?
- Is selling on Facebook Marketplace C2C, B2C, or social e-commerce? Can it be all three?
- Which type of e-commerce do you think will grow fastest in Nepal over the next five years, and why?
Exam-Style Questions
Short answer
- Distinguish between B2C and C2C e-commerce with examples.
- What is C2B e-commerce?
- What is m-commerce?
- Define G2B e-commerce with a Nepali example.
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.
