Basic E-Commerce and E-Business Glossary
Electronic Commerce or E-Commerce
Electronic commerce allows a company to conduct business over an electronic network such as the Internet. E-commerce can stand alone as a business model or be incorporated as part of a larger overall business strategy. E-commerce operates in all four major market segments: business to business (B2B), business to consumer (B2C), consumer to consumer (C2C) and consumer to business (C2B). However, more e-commerce markets have emerged, such as business to employees (B2E) and business to business to consumer (B2B2C).
E-business refers to the conduct of business on the Internet. It is not only the buying and selling of goods, but also servicing customers and collaborating with business partners. Major companies have embraced the culture and capabilities of the Internet as an integral part of their business operations. Companies use the Web to buy parts and supplies from other companies, to collaborate on sales promotions, and to do joint research. Amazon.com is a prime example of a company that has thrived by realizing the convenience, availability, and worldwide reach of the Internet.
Business to Consumer (B2C)
B2C refers to online marketing and distributing of products and services directly to consumers. Many brick-and-mortar retailers and marketers have embraced online B2C commerce It is a natural progression for their companies. The general principle behind implementing such a model is to reach more customers, service them better and increase sales, oftentimes reducing expenses as well.
Business to Business (B2B)
B2B e-commerce continues to experience huge growth. Companies of all sizes and types readily buy and sell products and services on the Internet. B2B e-commerce reduces human interaction, thereby lessening the possibility for human error. Other advantages include reduced overhead expenses, increased efficiency, and greater reach for B2B advertising. B2B e-commerce also allows businesses to establish new markets in more locations, both physical and virtual, far beyond their physical locations.