Q.What is e-business? Explain its main features and the common models of e-business (B2B, B2C, C2C, C2B) with an example of each.

E-business is business run with IT; it is usually classified by which two parties deal with each other.

Each model is named by the two sides of the deal.

Meaning of e-business. E-business (electronic business) is the carrying on of any business activity with the help of computers, software, the internet and other ICT. It covers not just buying and selling but the whole running of a business electronically — marketing, taking and processing orders, managing stock, keeping accounts, paying and being paid, dealing with suppliers and serving customers.

Main features of e-business.

1. Uses ICT — depends on computers, software, networks and the internet.
2. Not limited by time or place — can operate 24 hours a day and reach customers anywhere without a physical shop everywhere.
3. Faster transactions — orders, payments and information move electronically in seconds.
4. Lower cost — savings on rent, storage, paperwork and routine staff work.
5. Data-driven — every transaction is recorded, giving useful information for decisions.

Common models of e-business (named by who deals with whom):

• B2B (Business to Business) — one business deals with another. Example: a manufacturer supplying goods electronically to a wholesaler.
• B2C (Business to Consumer) — a business sells directly to individual consumers. Example: an online retail store selling to shoppers.
• C2C (Consumer to Consumer) — one consumer sells to another, through an online marketplace that brings them together. Example: a person selling a used item to another person online.
• C2B (Consumer to Business) — an individual offers goods, services or information to a business. Example: a freelancer bidding for and doing work for a company.

Benefits and cautions. E-business gives a wider market, round-the-clock availability, lower cost and faster service; but it depends on internet and power, needs secure payment and data protection (encryption), and offers no physical inspection of goods before purchase — which is why the database applications supporting it must store data safely and record every transaction accurately.

Naming the models but giving wrong examples — always check the two parties (the two letters). Also do not limit e-business to buying and selling; that narrower activity is e-commerce.