Types (Models) of E-Commerce

Classifying E-Commerce by Who Is Transacting With Whom

E-commerce transactions are classified by the type of party on each side of the transaction — a business, a consumer, or the government. The main recognised models are:

1. Business-to-Business (B2B) — Both the buyer and the seller are businesses. One firm sells raw materials, components, or supplies to another firm electronically, rather than to an individual final consumer. Example: a textile mill ordering yarn from a spinning company through the spinning company's online ordering portal. B2B transactions are typically large in value, involve fewer but bigger transactions, and often use dedicated business platforms or portals rather than a consumer-facing shopping app.

2. Business-to-Consumer (B2C) — A business sells directly to an individual final consumer over the internet. Example: a shopper buying clothes, electronics, or groceries from an online retail website or app. This is the most visible and familiar form of e-commerce to most people, since it is what an ordinary customer experiences when shopping online.

3. Consumer-to-Consumer (C2C) — One individual consumer sells goods or services directly to another individual consumer, usually through an intermediary online platform that connects them (the platform itself does not own the goods being sold). Example: an individual selling a used mobile phone or second-hand furniture to another individual through a classifieds or resale website/app.

4. Consumer-to-Business (C2B) — An individual offers goods, services, or their own skills to businesses, reversing the usual direction of B2C. Example: a freelance graphic designer or photographer offering their services to companies through a freelancing platform, or a consumer submitting a product idea/feedback that a company pays for.

5. Business-to-Government / Government-to-Business (B2G / G2B) — A business transacts electronically with a government department or public body — for instance, submitting an online tender for a government supply contract, filing statutory returns electronically, or paying government fees/taxes online. This model is especially significant in India given the growth of e-governance and online tender/procurement portals.

6. Intra-Business (Intra-B) E-Commerce — Electronic transactions and information exchange that happen within a single business itself — for example, between its different departments, branches, or employees — rather than with an outside party. Example: a company's head office and its various branch offices exchanging stock, sales, or personnel data through an internal electronic network. This model supports the internal efficiency of e-business even though no sale to an outside party is involved.

Why the Classification Matters …