Types of E-commerce

E-commerce is classified into several types based on the nature of the transaction and the relationship between the participants involved.

1. Market Relationship Classifications

The most common way to distinguish e-commerce types is by charting who is selling to whom:

  • Business-to-Consumer (B2C): Online businesses selling products or services directly to individual consumers. This includes retail goods, travel services, and online content. It is the most commonly discussed form of e-commerce.
    • Example: A person buying a book from Amazon or groceries from Bhat-Bhateni online.
  • Business-to-Business (B2B): Commercial transactions between and among organizations. B2B is the largest form of e-commerce by transaction volume, accounting for approximately 85% of the total digital field.
    • Example: A restaurant purchasing raw materials in bulk from a wholesale supplier platform.
  • Consumer-to-Consumer (C2C): Consumers selling directly to other consumers, typically with the help of an online market maker or platform provider.
    • Example: Selling a used smartphone on eBay.
  • Consumer-to-Business (C2B): Individuals who approach businesses with an offer or request for a service, rather than the business targeting the individual.
    • Example: Freelancers offering their skills on Upwork, or influencers pitching sponsored content to brands.

2. Peer-to-Peer (P2P)

P2P e-commerce connects individuals to securely share or rent assets and services without needing a traditional central business acting as the seller. This is a key technological component of the modern “sharing economy.”

  • Example: Renting out a spare room on Airbnb, or peer-to-peer file sharing protocols.

3. Mobile, Social, and Local E-commerce

Often, e-commerce is classified by the technology platform utilized rather than the relationship:

  • Mobile Commerce (M-commerce): Refers to any e-commerce transaction that takes place on a mobile device, such as a smartphone or tablet. M-commerce is currently the fastest-growing segment.
  • Social E-commerce: E-commerce that is enabled by social networks and online social relationships, often functioning as a subset of C2C or B2C.
  • Local E-commerce: A form of e-commerce that is focused on engaging the consumer based on their current geographic location (e.g., location-based deals from local merchants).

4. Government E-commerce

In addition to commercial entities, governments increasingly utilize e-commerce models to streamline public services.

  • Government-to-Citizen (G2C): Governments providing services, tax payments, or information directly to citizens electronically.
  • Government-to-Business (G2B): E-procurement platforms where businesses bid on government contracts or pay corporate taxes.

5. Intrabusiness E-commerce (B2E)

Also known as Business-to-Employee (B2E) e-commerce, this includes all internal organizational activities that involve the exchange of goods, services, or information among various units and employees of a single organization. It often relies on an intranet.

E-commerce Types in Nepal

In Nepal, all types of e-commerce are present and rapidly growing due to increased mobile and internet penetration:

  • B2C: This is the most visible type in Nepal. Leading platforms include Daraz and Sastodeal, which bring a massive variety of consumer retail goods to local buyers.
  • B2B: As businesses digitize, B2B platforms are emerging. While traditional B2B still rules, companies like Foodmandu, a popular food delivery platform, actively provide integrated B2B catering and logistical services to corporate clients.
  • C2C: C2C e-commerce is exceptionally popular in Nepal. Platforms like Hamrobazar and Facebook Marketplace are the go-to destinations for buying and selling used vehicles, electronics, and real estate among citizens.
  • P2P / Sharing Economy: Ride-sharing platforms like Tootle, Pathao, and InDrive connect individuals who need rides with individuals who have vehicles, driving massive P2P activity in major cities.
  • M-commerce: With the massive penetration of smartphones compared to desktop computers, m-commerce is the absolute dominant form of e-commerce in Nepal. Most transactions occur via dedicated merchant mobile apps or social media, frequently facilitated by local mobile wallets like eSewa or Khalti.