Types of e-commerce
There are a number of different types of e-commerce:
Business to Business e-commerce has been in use for quite a few years and is more commonly known as EDI (electronic data interchange). In the past EDI was conducted on a direct link of some form between the two businesses where as today the most popular connection is the internet. The two businesses pass information electronically to each other. B2B e-commerce currently makes up about 94% of all e-commerce transactions.
Business to Consumer e-commerce is relatively new to Australia. This is where the consumer accesses the system of the supplier. It is still a two way function but is usually done solely through the Internet.
Example: A home user wishes to purchase some good quality wine. The user accesses the Internet site http://www.craigs.com.au and follows the links to read a report on the recommended wines. After reading the tasting notes the user follows the links to place an order along with delivery and payment details directly into the merchants inventory system. The wine is then dispatched from the suppliers warehouse and in theory is delivered to the consumer without delay.
Consumer to Business is a growing arena where the consumer requests a specific service from the business.
Example: Harry is planning a holiday in Darwin. He requires a flight in the first week of December and is only willing to pay $250. Harry places a submission with in a web based C2B facility. Budget Price Airways accesses the facility and sees Harry's submission. Due to it being a slow period, the airline offers Harry a return fare for $250.
Business to Employee e-commerce is growing in use. This form of e-commerce is more commonly known as an 'Intranet'. An intranet is a web site developed to provide employees of an organisation with information. The intranet is usually accessed through the organisation's network, though it can and is often extended to an entrant who uses the Internet but restricts uses by signon and password.
These sites are usually some form of an auction site. The consumer lists items for sale with a commercial auction site. Other consumers access the site and place bids on the items. The site then provides a connection between the seller and buyer to complete the transaction. The site provider usually charges a transaction cost. In reality this site should be call C2B2C.
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