Forms and Classification of Online Business

Topics: Electronic commerce, Internet, Website Pages: 6 (1739 words) Published: March 31, 2010
Forms and classification of online business

According to (Adam, Z.R.), the major different types of e-commerce (B2B) Business-to Business, (B2C) Business-to-Consumer, (B2G) Business-to-Government, (C2C) Consumer-to-Consumer and M-commerce which is mobile commerce.

Business-to-business is simply e-commerce that is present between two businesses. It is said that it is the fastest growing type of e-commerce, much faster than B2C. It is a type of e-commerce wherein two businesses transact with each other online. About 80% of online businesses are of B2B type.

Business-to-consumer is e-commerce between companies and consumers. It is the second largest in growth and numbers among the types of E-commerce. It basically is interactions between consumers whether they transact online or offline or just gather information about products that are being offered by the company. Examples of such companies that are of B2B are Amazon and Costco.

Business-to-government is e-commerce between companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations

Consumer-to-consumer is e-commerce between private individuals with their fellow consumers. This type of e-commerce is characterized by online markets and online auctions wherein these sites serve as a medium for consumers to transact with other consumers. This type of e-commerce is said to have huge potential of growth out of all the types of e-commerce.

Consumer-to-business is e-commerce that is likened to reverse auction. It is basically the opposite of selling wherein a company would respond to a consumer’s need. This type of e-commerce is rarely encountered. However, e-bays report that there is a large number of this type of e-commerce wherein they earn millions of dollars every day.

Mobile commerce is e-commerce wherein transactions from businesses to consumers are done through wireless networks through the medium of PDA’s and portable handheld devices.

Business Models used on the Internet

According to (Starting an internet business- we make it simple), there are numerous ways on making money in the internet. There are business models on which they are differentiated on how they execute and return profit. Some of these are retail while some use the power of information to sell.

Affiliate Marketing – the most common type of Internet business around. It objective is to market and sell someone else’s product. There are various ways to market the brand both on and offline.

Passive (or niche sites) – sites designed to market advertising and/or products that require little to no maintenance. These sites can be focused on small subjects or some are built to be big multi-subject sites. The main intention here is build, promote and forget.

Information Sites - this could fall into the category of passive. These sites are built for advertising; they target a narrow subject and are intended to make money primarily from advertising. Once set up and promoted, they only require occasional maintenance.

Other specific business models are Product creator wherein creating one’s product be it a fashion line, shoes, and etc as long as it’s an original product and not someone else’s. Its difference with affiliate marketing is that Product creator makes one’s products and sells it as well.

Email Marketing or more commonly called List building makes use of Email marketing wherein one has to build relationships with its customers and is particularly effective in building targeted traffic. It is the most highly rated way of making money in the Internet.

Services are providing services such as weight loss program, quit smoking plan and etc. This provides more consumer interaction and is recommended if one excels in interacting with people.

There are also more specific types of business models and more recognizable which is the Retail...

References: Adam, Z. R. (2003). E-commerce and e-business. Manila, Philippines: United Nations Development Programme.
Brown, D. (2009). Using Social Networking for Business. Retrieved March 14, 2010, from the World Wide Web:
Nielsen (2009). Trends in Online Shopping. Retrieved March 14, 2010, from the World Wide Web:
Poo, C. (2007) Build Website Online. Retrieved March 14, 2010, from the World Wide Web:
Starting an internet business- we make it simple (2010). Types of Business Models- Step 2. Retrieved March 14, 2010 from the World Wide Web:
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