Beyond B2B and B2C: we explain the types of e-commerce that exist

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Understanding the specific jargon and acronyms used in the e-commerce sector is crucial for entrepreneurs to effectively navigate business environments, especially during networking events or investor meetings. E-commerce models are typically classified using acronyms that combine the letters “B” (Business), “C” (Customer), “A” (Administration), “I” (Investors), and “E” (Employees), each representing different actors in commercial relationships. Recognizing these terms helps clarify company missions and target audiences.

The main e-commerce types include B2B (Business-to-Business), where companies sell products or services to other companies, exemplified by platforms like Amazon; B2C (Business-to-Consumer), where businesses sell directly to end customers with various approaches; and B2E (Business-to-Employee), involving transactions between companies and their employees. Other models cover interactions with public administrations (B2A and A2B), investors (B2I), consumers selling to businesses (C2B), consumer-to-consumer sales (C2C) like Wallapop, and administration-to-consumer services (A2C). Each model reflects different commercial relationships and processes, illustrating the diverse landscape of e-commerce and the importance of understanding its terminology for successful engagement and communication in the field.

When evaluating different ideas, it is important to know the types of e-commerce that exist in order to define the activity of a startup properly.

As in all sectors, it is extremely important to be aware of the jargon used in the business environment where we move so as not to lose the thread in conversations and show that you know the environment. The types of e-commerce are very given to slang. In the case of entrepreneurs, it is common to attend events where it is essential to know the terms used to demonstrate that they have the appropriate knowledge to function in that environment. Even more so, if possible, when there are investors to whom we can propose to make an investment in a project and we have to explain to them precisely what it is. When talking about e-commerce, it is common to use certain acronyms to differentiate the different business models that companies opt for. Understanding this nomenclature is essential in order to know what the mission of companies is, what type of customers they are targeting with their activity. To do this, itis essential to understand that whenever we find the letter “B” they will be referring to ‘Business’, which in Spanish comes to represent the company, whether it is a company or even a self-employed person acting on their own account. On the other hand, when we see the letter “C” we will be identified as ‘Customer’ or end customer, that is, the user to whom the service or product is directed.

And although less common, we can also find letters such as “A” in these acronyms to refer to those businesses oriented to administration, that is, that maintain a commercial relationship with governments or some type of public administration. And we may also see the letter “I”, which refers to ‘Investors’, as well as the “E”, which refers to ‘Employees’, for those types of commerce that involve the company’s own workers.

But how do all these elements come together? To do this, we are going to review the different types of e-commerce that exist, in order to analyze the relationships that are established between all the actors involved and what the resulting acronyms mean.

B2B e-commerce: Business-to-Business

This is one of the most common models, as it refers to the services and products that companies offer to individuals. Of course, all this must be online, so within this type of e-commerce we can say that Amazon is the main reference, since Jeff Bezos has managed to turn his startup into a real technological giant.

B2C: Business-to-Consumer

The companies that bet on this type of commerce are those that carry out their transactions with other companies. Like the previous one, it is one of the most common types of e-commerce. However, in this case there are more options, since the company that offers and sells its products or services can choose three possible ways.

Either by opting for a single sale to other companies, adapting all their processes for this; either by selling without any difference to companies and end customers, so that both an individual and a corporation can acquire their products; or differentiating whether their customers are companies or end users, where certain factors come into play such as offering products without VAT, facilities to acquire their products in large quantities, or making discounts based on the quantity purchased.

B2E: Business-to-Employee

This business model refers to the commercial relationship that is established between companies and their employees. For example, there are many cases in which companies offer certain products to their workers through their intranet, so they design certain services or products to meet the needs of employees.

B2A: Business-to-Administration

This type of e-commerce is referred to when the startup offers a service to a public administration. In this case there are many examples, but the most prominent are those companies that create the portals of public entities.

B2I: Business-to-Investors

This model, on the other hand, is based on the company-investor relationship, so that the company proposes certain products or markets certain services focused on investors. It is common in those companies that are in charge of locating and analyzing certain projects where it may be interesting to invest, so that they present them to potential investors always with a unified format so that they can try to unify their criteria in decision-making and optimize this task.

C2B: Consumer-to-Business

This type of e-commerce is not usually too common, since there are not many cases of companies that are committed to turning the classic B2C on its head and that consumers are the ones who market with the companies. However, there are projects in which it is the customers who generate value for companies. In fact, it is usually common in the universe of ‘influencers’, when someone known on social networks receives payment from a firm to promote their products, so that they encourage their followers to buy certain products. There are also platforms that allow users to bid on certain products and, finally, the companies that offer them are the ones who decide whether to accept or reject the offer they have made.

C2C: Consumer-to-Consumer

When it is the customers who establish a commercial relationship between customers, then this is when we talk about this ‘e-commerce’ model. A clear example of a fairly popular startup is Wallapop, which allows users to sell their goods to other users. Like the rest of the models, it has certain advantages, such as that users can buy at cheaper prices or get rid of those items that they no longer need, but they also have certain disadvantages, such as that there is no guarantee that the products you buy are of the best quality.

A2C: Administration-to-Consumer

This acronym includes all those transactions that occur between the public administration and the end customer. There are certain procedures that citizens can pay through the platform that certain public entities have made available to them, such as paying a fine or paying a tax, which allow this type of e-commerce to exist.

A2B e-commerce: Administration-to-Business

In the same way that administrations allow private citizens to carry out certain procedures through the internet, there is also this exchange with companies. Procedures such as the payment of trademarks and patents, or the application for licenses, are very common in the framework drawn by this type of e-commerce.