Est. 2011
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Est. 2011
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Est. 2011
Est. 2011
For those of us who were selling products online in 1996, the term itself “E-Commerce” did not exist. We simply referred to the practice as “web, or online sales”. For companies like the one I started working for out of college, web sales was a new emerging sales channel, different from our catalog and call center business. The term E-Commerce itself would not even become widely used to describe online sales until 2015. When I started the eCommerce Institute and created eCommerceInstitute.com in 2011, the term was rarely used and more associated with the technology behind the practice of online sales vs. representing the concept as a whole. In fact, Shopify was one of the first to start using the term E Commerce as a platform provider for online businesses.
From the early days of online E-Commerce, the types of E Commerce has diversified into several distinct classifications. In fact, there are 6 types of E-Commerce business models today.
Business to consumer (B2C) e-commerce refers to online transactions taking place between businesses and individual consumers. The B2C e-commerce market originated in the mid-1990s with the rise of the internet. Early players included Amazon and Dell, which paved the way for other players to enter the market. The market initially focused on selling books and other items, but has since expanded to include various industries such as fashion, electronics, and groceries.
Today, B2C e-commerce has become an integral part of the economy, with more people shopping online than ever before. According to “Statista”, global e-commerce sales reached $4.28 trillion in 2020 and are expected to reach $5.4 trillion by 2022. The pandemic has accelerated the growth of e-commerce as more people have turned to online shopping due to stay-at-home orders and social distancing measures.
The impact of B2C e-commerce on the economy is significant. It has created new jobs in areas such as web design, logistics and order fulfillment. It has also resulted in increased competition, particularly for brick-and-mortar retailers. This has led to many traditional retailers adopting e-commerce channels in order to remain competitive. Furthermore, B2C e-commerce has allowed businesses to reach a wider audience, breaking down physical barriers to entry.
As B2C e-commerce continues to evolve, it is likely that new technologies such as artificial intelligence, augmented reality, and voice assistants will be integrated into the shopping experience. This will further enhance the user experience, making it easier and more convenient for consumers to shop online. In conclusion, B2C e-commerce has come a long way since its inception in the mid-1990s. Its impact on the economy has been significant, and it will continue to play an important role in industry and commerce for the foreseeable future.
As of 2021, there are millions of B2C (business-to-consumer) companies operating in the United States, ranging from small local businesses to global giants like Amazon, Netflix, Walmart, and Target. It is difficult to determine an exact number since the business landscape is constantly changing, and new companies are being established every day. According to the U.S. Small Business Administration (SBA), there were approximately 30.7 million small businesses in the United States in 2019, which accounted for over 99% of all businesses. Many of these businesses are likely B2C, providing goods or services directly to consumers. However, larger B2C companies like Amazon and Netflix are major players in the market and have a significant impact on consumer behavior and trends.
B2B e-commerce, or business-to-business electronic commerce, refers to the practice of businesses trading goods or services with other businesses through online platforms. In simpler terms, it is the use of digital channels to sell products or services from one company to another. This process eliminates the necessity for physical documents, as transactions take place electronically. B2B e-commerce comes in many forms, such as supply chain management portals, online marketplaces, and e-procurement platforms.
The origins of B2B e-commerce can be traced back to the early days of the internet, with the first e-commerce transaction taking place in 1994. As businesses recognized the potential benefits of using the internet to connect with other businesses, the growth of B2B e-commerce accelerated. Over the years, advancements in internet technology and software have made it easier for businesses to conduct transactions online, leading to the development of tailored e-commerce solutions for B2B companies.
With the rise of B2B e-commerce, businesses can streamline their operations, improve efficiency, and reduce costs. Platforms such as Amazon Business, Alibaba, and eBay Business have revolutionized the way companies buy and sell products, creating a more competitive market. B2B e-commerce continues to evolve as technology advances, and it is expected to become an increasingly important part of business operations in the future.
There are several large business-to-business (B2B) online companies that dominate the market. Some of the largest B2B online companies are:
1. Alibaba: Headquartered in China, Alibaba is the largest B2B online platform connecting buyers and sellers globally. It provides a wide range of services such as sourcing, payment, logistics, and marketing.
2. Amazon Business: Launched in 2015, Amazon Business is a B2B online marketplace that offers business customers access to millions of products, including industrial supplies, healthcare, and education products.
3. Google Cloud: A suite of cloud-based services provided by Google, including cloud computing, machine learning, and data analytics, designed to help businesses improve their performance and efficiency.
4. Salesforce: A cloud-based customer relationship management platform that provides businesses with tools for marketing, sales, customer service, and analytics.
5. LinkedIn: A professional networking platform that offers businesses the opportunity to connect with potential clients, employees, and partners. LinkedIn also provides advertising services for businesses to target their ideal customers.
Business to government (B2G) ecommerce refers to the electronic transactions that businesses conduct with government agencies. These transactions include procurement of goods or services, payment processing and any other type of interactions that take place between businesses and government entities. The origins of B2G ecommerce can be traced back to the earliest forms of electronic commerce, where businesses started using the internet to engage with customers and suppliers. However, B2G ecommerce started gaining popularity in the late 1990s and early 2000s, where it became necessary for government agencies to automate their procurement processes and cut down on paper-based documentation.
Today, B2G ecommerce is playing a significant role in the economy of many countries. It has helped businesses to streamline their interactions with government entities, reduce the cost of doing business, and create new revenue streams. Many governments around the world have established online portals where businesses can register and bid for contracts, making government procurement more accessible and transparent. This has led to increased competition and subsequently, lower prices for taxpayers.
Furthermore, B2G ecommerce has enabled governments to become more efficient, reduce bureaucracy and minimize corruption. It has also provided small businesses with an opportunity to compete with larger firms for government contracts and has enabled them to expand their customer base. Overall, the economic impact of B2G ecommerce is significant, and it is expected to continue to grow as more businesses and governments embrace digital transformation and automation.
Business to government (B2G) online companies are those that provide services and solutions to government agencies. They include:
1. GovWin: A government market intelligence platform that helps businesses win government contracts.
2. NIC Inc.: Provides online services to assist governments in serving citizens, including payment processing and online form submission.
3. Granicus: Offers cloud-based solutions for government agencies, including software for legislative management and public outreach.
4. CivicPlus: Provides website design and hosting services for local government agencies.
5. OpenGov: Provides financial transparency software to enable governments to better manage their budgets and expenses.
6. eFileCabinet: A document management software used by many government agencies for organizing, protecting, and sharing data.
7. Granicus: Provides cloud-based software for government agencies to manage and stream live and on-demand videos.
B2E, or business-to-education, ecommerce refers to online transactions between businesses and educational institutions. The rise of technology has led to increased adoption of ecommerce in the education sector, resulting in cost savings, improved efficiency, and better access to academic resources. B2E ecommerce allows businesses to provide educational institutions with products and services such as textbooks, software, professional development programs, and other educational tools.
The economic impact of B2E ecommerce is significant. By allowing for a more streamlined procurement process, educational institutions can save money on the cost of goods and services, leading to reduced expenses over time. The increased efficiency of B2E transactions also cuts down on administrative costs associated with traditional procurement methods, freeing up resources for investment in other areas.
Furthermore, B2E ecommerce can have a positive impact on the businesses serving the education sector by boosting sales and increasing market share. The digital nature of B2E transactions allows for easier scalability and expansion into new markets, creating more opportunities for growth. Overall, B2E ecommerce is a beneficial tool for educational institutions and businesses, allowing for cost savings, improved efficiency, and economic growth.
Business to education (B2E) companies are those that offer products or services specifically designed for the education sector. These can range from software tools for teachers to training programs for students. Some examples of B2E companies include:
1. Blackboard – provides a range of e-learning solutions for schools and universities, including learning management systems and course content.
2. Pearson – offers educational products and services for schools, universities, and professional development, such as textbooks, assessments, and teacher training.
3. Edmentum – provides online learning tools and solutions for K-12 schools, focusing on personalized learning and data-driven instruction.
4. McGraw-Hill Education – offers a range of educational products, including textbooks, digital learning tools, and assessments.
5. Coursera for Business – provides online courses and training programs for businesses and individuals seeking to upskill or reskill in specific fields.
6. Sensory Store – provides special needs products including sensory therapy equipment to schools across the US.
B2E companies play an important role in supporting the education sector, providing innovative solutions to enhance teaching and learning outcomes.
B2B2C ecommerce refers to a business model where a business sells its products or services to another business, who then sells those products to consumers. This approach allows businesses to reach a wider audience while simultaneously reducing their financial and operational risks. It has its origins in the early 2000s, when many businesses began to realize the potential of using the Internet to sell products to other businesses, while also leveraging these partnerships to reach end-consumers.
B2B2C ecommerce has had a significant economic impact, particularly in terms of driving revenue growth and increasing efficiencies across the supply chain. By working with partners in the B2B space, businesses can leverage their expertise to improve product design, production, and distribution processes. This, in turn, helps to increase the speed of product delivery and maximize customer satisfaction. Moreover, B2B2C ecommerce has also resulted in the development of new business models that provide greater flexibility and customization options, which can be tailored to the needs of individual businesses and consumers.
Overall, the rise of B2B2C ecommerce has had a profound impact on the way businesses sell their products and services, driving increased efficiency, revenue growth, and customer satisfaction. By embracing this business model, businesses can better leverage the expertise of their partners to deliver high-quality products and services that meet the needs of both businesses and consumers. Moving forward, it is likely that we will continue to see the development of innovative new business models that leverage the power of B2B2C ecommerce to drive growth and innovation across the industry.
B2B2C companies are those that provide products or services to businesses, which in turn offer those products or services to consumers. The business acts as an intermediary between the B2B2C company and the end consumer. Some examples of B2B2C companies include:
1. Payment gateways: Companies like PayPal, Stripe, and Square provide payment processing services to businesses, which are then used to accept payments from customers.
2. Insurance companies: Many insurance companies provide their products to businesses, which then offer them to their customers as part of an overall package.
3. Health and wellness providers: Companies like Fitbit and Weight Watchers provide their products to businesses, which can offer them as part of employee wellness programs.
4. Software companies: Many software companies provide their products to businesses, which use them to manage their operations or offer them as part of their own products or services.
5. Travel and hospitality companies: Some travel and hospitality companies provide their services to other businesses, such as travel agencies or hotels, which then offer them to their customers.
Consumer-to-consumer (C2C) e-commerce refers to a platform or a digital marketplace that connects individuals or consumers directly to other consumers. The concept of C2C e-commerce originated from online classifieds, where users advertised their products and services, and the interested buyers would contact them directly. With the rise of the internet, the growth of e-commerce, and the ubiquity of social media, C2C has rapidly gained ground in recent years. Popular C2C e-commerce marketplaces include eBay, Craigslist, and Facebook Marketplace.
C2C e-commerce has revolutionized the way people buy and sell goods and services. It has facilitated the creation of peer-to-peer networks, enabling individuals to sell and purchase items without being restricted to physical locations. The impact of C2C e-commerce on the economy cannot be overstated. It provides the opportunity for anyone to start up a business with very little investment and sell to a global market. C2C e-commerce has also created new job opportunities, especially in logistics and the provision of support services to businesses and individuals that use the platforms.
The C2C market has also helped to increase the ease of access to affordable goods and services for consumers while also providing an avenue for individuals to repurpose resources by offering them back to the market. C2C transactions have also simplified transaction processes and facilitated secure payment methods, which have helped to reduce fraud in the market. Nonetheless, it is important to note that this market has also exposed individuals to risks involving privacy loss, and the potential for scams and cyber attacks on data, a risk that individuals and businesses alike need to be aware of and work to limit.
Some examples of C2C ecommerce companies include eBay, Craigslist, Letgo, Poshmark, and Mercari. eBay is one of the most well-known C2C ecommerce companies, as it allows individuals to buy and sell products through online auctions or fixed-price sales. Craigslist is another popular platform, which operates as a network of online classifieds for jobs, housing, for sale items, services, and more. Letgo is a newer C2C platform that is focused on buying and selling used items locally, while Poshmark is an online marketplace for buying and selling fashion and accessories. Finally, Mercari is a mobile app that enables individuals to buy and sell used goods, with a focus on electronics, fashion, and home goods.
Last, but not least, C2B (consumer-to-business) ecommerce is a business model where individual consumers offer goods or services to businesses. This differs from traditional business-to-consumer (B2C) ecommerce where businesses offer products or services directly to consumers. The rise of the internet and social media platforms has made it easier for individual consumers to connect with businesses and offer their services.
The origins of C2B ecommerce can be traced back to the emergence of the gig economy. Services such as Uber and Airbnb have allowed individuals to offer their services to businesses and consumers on a flexible basis. The rise of freelance work has also contributed to the growth of C2B ecommerce. Individual freelancers can offer their expertise and services to businesses, allowing companies to hire talent on a project-by-project basis.
The economic impact of C2B ecommerce has been significant. It has allowed the creation of new markets and revenue streams for individuals who may not have had the opportunity to start their businesses without the internet. This has led to increased entrepreneurial activity and economic growth. C2B ecommerce has also allowed businesses to access a diverse range of skills and talent, enabling them to reduce their costs and become more efficient.