7 Types of e-Commerce You Need to Utilize to Grow Your Business

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Today’s digital services are mushrooming with many advantages to make complicated things easier and faster. And this applies also in the business world. The presence of digital services makes every transaction activity whether it is promotion, sale, purchase, and marketing of products or services can be done electronically or better known as e-commerce.

Through an e-commerce system, producers can offer their products or services without meeting directly with consumers. Likewise with consumers who can choose and buy products without seeing it firsthand. According to the PPRO report, the world’s leading payment service company, regarding payments and online commerce in 2018, Indonesia has the highest growth compared to other countries, which is 78% year. Therefore it is very profitable if you can follow this business trend. But it will be very difficult if you do not know the basic knowledge. Maybe people only know e-commerce limited to online shops where they sell goods. But apparently the types of e-commerce are broader than that. Other types of e-commerce have more parties both as producers and consumers. Understanding the types of e-commerce will help you to be able to keep up with business trends and expand the business that is being pioneered. What are the types of e-commerce businesses? The following explanation.

Business-to-Business (B2B)

7 Types of e-Commerce You Need to Utilize to Develop Your Business This type of e-commerce is the biggest one because it covers transactions made between companies or types of businesses. B2B is an electronic and physical transaction between one business and another business. The consumer of the sale of goods and services is a group or group that runs the business and not individual consumers. One easy example is if your business becomes a manufacturer of synthetic leather raw materials for the business of making bags and shoes. Type B2B provides a large volume of needs for goods and services so that the perpetrators require a lot of costs to run a business. And of course the risk is also quite large.

Therefore, B2B business people usually use EDI (Electronic Data Interchange) and e-mail in the transaction process, providing information and consultation relating to the goods or services offered. EDI (Electronic Data Interchange) is a structured data transfer process, in an agreed standard format, from one computer system to another. Journals are a form of B2B, where the target audience of the Journal is entrepreneurs or business owners who need bookkeeping and accounting services. With Journals, entrepreneurs can more easily manage business finances anytime and anywhere, and make financial reports easier, safer, and reliable.

Business-to-Consumers (B2C)

7 Types of e-Commerce You Need to Utilize to Grow Your Business Business-to-Consumers (B2C) are the most common types of e-commerce businesses and are best known by the public. If B2B markets goods and services to other companies, B2C is a transaction process carried out between producers of goods or services directly to end consumers. Business-to-Consumers are like retail stores that have retail products to sell and warehouses to stock goods. What distinguishes it from ordinary retail stores is that the transaction process is done online. B2C is easier and more dynamic so it can develop very quickly. The ease of building websites makes a lot of virtual stores spread across cyberspace.

This is what causes competition in this type of e-commerce business is very tight and tends to be uneven. However, when compared to ordinary retail stores, B2C provides more information, lower prices, as well as the buying and selling process and fast shipping to consumers. Examples of B2C businesses that are quite popular in Indonesia are Lazada, Amazon, Ebay, Traveloka, Berrybenka and others.

Consumer-to-Consumer (C2C)

7 Types of e-Commerce You Need to Utilize to Grow Your Business Besides B2C, Consumer-to-Consumer is also a popular type of e-commerce business. C2C is a transaction of goods or services carried out from consumers to consumers. C2C is divided into two models namely marketplace and classifed. In the marketplace model, consumers as providers of goods and services need a platform as a container for transactions. Within the platform, consumers who act as sellers can post various products for other consumers to buy. Examples of C2C platforms that are already well known in Indonesia are Tokopedia, Bukalapak, Shopee and so on.


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