Saturday, July 3, 2010

Categories of the E-commerce

Advanced digital technologys, combined with enterprises and customers of these technologys, boost e-commerce. Similar to digital technologys, e-commerce cannot reach its goal in one move. As to enterprises and customers, e-commerce of different types and levels imply different opportunities.

In terms of transaction categories, e-commerce falls into five categories: business to business (B2B), business to customers (B2C), business to governments (B2G), governments to governments (G2G), and customers to customers (C2C). B2B, the mainstream in e-commerce and the principal method to improve competition ability in the competitive market, has come into existence for many years with the characteristics of carrying out commercial activities by EDI via special networks or Value-Added Networks (VAN, for short). B2C takes place between business and customers, in which online sales are carried out by Internet, such as the online bookstore Amazon. In recent years, the increase of number of netizens and new transaction platforms created by Internet for enterprises and customers speedups the rapid development of e-commerce. With regard to customers, it is unnecessary to set an unified standard for document transmission because only credit cards, e-money or e-wallet are involved in online sales and payment. In addition, searching and browsing functions and multimedia interface supplied by Internet facilitate consumers to look for and give an insight into products wanted. B2C has enormous potential and will be the main drive for the development of e-commerce. B2G, the business between enterprises and governments, is still in its experimental phase, focusing on administrative management, governmental invitated tender, and the implementation of various economic policies etc. C2C, the individual consumption behaviors, has not yet taken shape, such as the second-hand market. But along with the development of B2C and B2G, all countries will perfect the personalized services in e-commerce. In the following sections, the above five basic e-commerce categories, the common ones in e-commerce, will be analyzed in detail.