Understanding E-Commerce: From B2B to M-Commerce and the Digital Marketplace
E-commerce refers to trading transactions of goods or services through electronic platforms. E-commerce transactions are facilitated digitally over the Internet and the web, constantly evolving with an emphasis on convenience and accessibility in digital marketplaces for various types of transactions such as online shopping, banking, and other online payments.
Marketplace serves as a place for sellers to reach buyers and the existence of the marketplace allows for a vast reach of consumers. For enterprises, e-commerce provides numerous benefits due to the lack of physical contact and the assistance of the internet which allows for various payment options, practicality and efficiency in telecommunications, cheaper operational cost, and ease of buying and selling activities. For consumers, e-commerce enables them to purchase products anytime from anywhere as well as compare prices across different retailers in making decisions. The prominent categories include Business to Business (B2B), Business to Consumer (B2C), Business to Government (B2G), Consumer to Consumer (C2C), and Mobile Commerce (M-Commerce) transactions.
Business-to-consumer (B2C) e-commerce transactions occur between a business entity and a private individual, closely resembling traditional retail practices, where businesses provide goods or services directly to individual consumers through online platforms. Prominent examples of B2C e-commerce platforms in Indonesia include Tokopedia, Shopee, and Lazada. The revenue models in this sector vary from advertising-based strategies that generate income through platform advertisements to community-driven models that foster consumer engagement via forums and social features. Netflix and Amazon Prime, for instance, implement a fee-based model in which consumers pay subscription fees for access to specific products or services.
In comparison, business-to-business (B2B) e-commerce involves transactions between two business entities, where one enterprise supplies goods or services necessary for operational purposes to another corporation. This type of commerce includes suppliers of equipment to companies, hosting service providers, and manufacturers of raw materials. Transactions predominantly occur through corporate websites serving as the main e-business platforms where businesses showcase their offerings and facilitate direct transactions. However, there are also specialized industry portals that cater to specific sectors such
as Alibaba catering to wholesale trade and manufacturing. Furthermore, there are brokerage sites that function as intermediaries for negotiations like Empire Flippers and Flippa. Due to the extensive volumes of goods and services exchanged between enterprises, B2B represents a major component of electronic trade. In concern of the substantial financial risks associated with large investments, B2B participants often utilize Electronic Data Interchange (EDI) and email during transaction procedures for information sharing and consultation concerning provided items or services.
Business to Government (B2G) e-commerce refers to the transactions that occur between private enterprises and the public sector, encompassing activities such as online procurement, licensing processes, and various interactions with government entities. B2G e-commerce is characterized by the public sector overseeing e-commerce operations and a pressing need within the public sector for a more efficient procurement system.
Consumer-to-consumer (C2C) transactions occur through platforms that facilitate exchanges between individual consumers, either with or without the involvement of an online intermediary. Some platforms like Mercari act as intermediaries, facilitating the exchange of goods or services between consumers. In contrast to Peer-to-Peer (P2P) exchanges where direct transactions occur between individual consumers without the need for an intermediary. Peer-to-peer (P2P) technologies ease data sharing of files or resources directly between individuals, bypassing centralized servers. Notable examples include BitTorrent, Napster, and Gnutella in which these platforms do not typically have an explicit revenue model.
Mobile Commerce (M-Commerce) necessitates wireless devices for online transactions including mobile shopping, banking, and payments. Unlike traditional e-commerce, M-Commerce introduces additional revenue streams through fees associated with mobile transactions, thereby augmenting the revenue models inherent in conventional e-commerce approaches.
Referensi:
Yuswita, Eva (2022) PENGARUH PEMAHAMAN E-COMMERCE DAN SISTEM INFORMASI AKUNTANSI SERTA MOTIVASI BERWIRAUSAHA SEBAGAI VARIABEL INTERVENING TERHADAP KEPUTUSAN BERWIRAUSAHA. Skripsi thesis, Sekolah Tinggi Ilmu Ekonomi Indonesia Jakarta.
Comments :