E-commerce is basically a transaction that takes place between a seller and a client online. However it is more broadened than that. It is divided into six parts.
- Business to Business- This is a type of e-commerce(online transaction) that occurs between two companies. This method of electronic commerce is mostly practiced by producers and wholesalers.
- Business to consumer- This type of electronic commerce exists between businesses and the final consumer. It can be associated with the retail aspect of business. This type of e-commerce is greatly used now because it is easier and faster due to the advent of the web, its only shortcoming is that it isn’t stable and can be discontinued anytime. This type of e-commerce enables the client to buy a product cheaper because it is being bought directly and there are no extra charges from a third party.
- Consumer to Consumer- This type of e-commerce transaction of goods and services involves a middleman/third party. It is conducted between customers.
- Consumer to Business- This type of e-commerce involves different number of individuals who make their goods and services available for companies that have the need for them.
- Business to Administration- This type of e-commerce involves online transaction of products and services between different companies and administration. This aspect is a broad one as it involves a variety of services such as social security, employment etc.
- Consumer to Administration- This type of e-commerce is concerned with online transaction between individuals and public administration. Examples include taxes and health.