What is an electronic business? features and types

What is an electronic business?

The way businesses work has changed dramatically as a result of the internet. Businesses used to be limited to physical premises and face-to-face communication. Today, you can run your business totally online. This is particularly advantageous for small enterprises and entrepreneurs with limited resources. All businesses, regardless of size, can compete on an equal footing in the electronic marketplace.

We can now shop with ease thanks to e-commerce. We don't need to leave the house; we can shop from the comfort of our own homes and obtain fantastic offers. But do you understand the various sorts of e-business? What features does it have? Let's learn more about e-commerce.

» Learn more: Read our explainer on Social media marketing for SMEs: case studies, definitions, and strategies

Introduction to e-Business

E-business, often known as an online business, refers to business transactions that take place through the internet. In the year 1996, the word "e-business" was coined. Electronic business is abbreviated as e-business. As a result, the buyer and vendor do not meet in person.

We are all exposed to various sorts of e-Business in today's society. It has risen in leaps and bounds since its inception. Some believe it may soon entirely replace brick-and-mortar establishments. While that remains to be seen, we cannot overlook its enormous importance in today's global economy.

Features of Online Business

The following are some of the characteristics of an online business:

• It is simple to set up.
• Geographical boundaries do not exist.
• It is far less expensive than a typical business.
• Business hours are adaptable.
• Marketing tactics are less expensive.
• The government provides financial assistance to online businesses.
• There are a few issues with security and integrity.
• There isn't any personalization.
• There is no meeting between the buyer and the vendor.
• It takes time for things to be delivered.
• A transaction risk exists.
• Anyone, at any moment, can buy anything from anywhere.
• Compared to traditional business, transaction risk is higher.

» Learn more: Read our explainer on Visual identity: How graphic design affects consumer views of your company

Different types of e-commerce

There are now many different forms of e-Businesses. It is entirely dependent on the final consumer. The following are some examples of e-commerce:

Business-to-Business (B2B)

Business to business transactions is those that take place between two companies. This sort of electronic commerce is generally used by producers and traditional commerce distributors. Also. It helps businesses run more efficiently.

Business-to-Consumer (B2C)

It is a business-to-consumer transaction when a consumer buys things from a seller. A business-to-consumer transaction is when people shop on sites like Flipkart, Amazon, and others. The end customer purchases directly from the seller in such a transaction.

Consumer-to-Consumer (C2C)

When one person sells a product or service to another person, this is known as a consumer-to-consumer transaction. People, for example, use OLX to advertise items they want to sell. In the world of secondhand products, C2C transactions are the most common. The website serves just as a conduit, not as a provider of goods or services.

Consumer-to-Business (C2B)

In C2B, the traditional concept of product transfer is completely flipped. This type of e-commerce is particularly frequent in crowdsourcing projects. Many people offer their services or products to companies who are especially looking for them.

Consumer-to-Administration (C2A)

The Consumer-to-Administration paradigm covers all electronic transactions between individuals and government agencies. Here are some application examples:

1. Dissemination of information, distant learning, and other aspects of education
2. Social Security - by disseminating information, providing payments, and so on.
3. Taxes — filing returns, paying taxes, and so forth.
4. Appointments, disease information, payment of health services, and so on.

Business-to-Administration (B2A)

This section of e-commerce includes all transactions made online by businesses, government agencies, and public administration. In addition, investments in e-government have resulted in a significant increase in these types of services in recent years.

Don't forget to read: Investing in top E-Commerce Companies 2022