Advantages Of e-Business Models

What are e-business models?

E-business employs different business set ups in transactions between different parties to simplify the business operations. The main parties involved in e-business are the consumer, the business, the employees and in some cases, the citizens and the government. Each transaction is divided into a different category based on the parties involved. This makes the transactions simple to monitor and also to provide a better comprehensive overview of the business. The different e-business models are business to business (B2B), business to consumer (B2C), consumer to consumer (C2C), consumer to business (C2B), business to government (B2G), government to business (G2B), government to citizen (G2C), government to government (G2G) and business to employee (B2E).Consumer to business (C2B)

The consumer to business e-business model is the exact opposite of conventional business. In this system, consumers sell goods and services to the business rather than the business selling the same to the consumers. Affiliate business is the best example of a C2B business model. In affiliate marketing, the customers of a website promote it using various means and services in exchange of money. The website gains by attracting more customers and improving its traffic volume. Other examples of C2B models are auction sites and sales wherein the customer sells his goods to the website to be sold to other customers. Actually, auction sites are a combination of two business models – customer to business and business to customer. The final outcome is called customer to customer model.

Government to government (G2G)

Transactions between government departments of different states and countries as well as inter-department transactions are government to government (G2G) e-business. With the advent of online business models, it has become easy for governments to carry out transaction more swiftly.

The two main bifurcations of G2G model are internal facing and external facing. While internal facing deals with interactions of commercial and non commercial types within a single government, external facing involves transactions between two or more different governments.

Government to citizen (G2C)

G2C is the transaction between government and citizen. G2Cmodel is used for different kinds of interactions like providing online services for the citizens. Some examples of this model are online ticket booking services, online payment and receipt of bills, providing access to information like tax details, important dates and procedures. This model is also used during election campaigning to inform the users about the strategies and planned developments for the coming years. This model has made the government more accessible to the citizens and provides a platform for government citizen interface.

The biggest advantage of e-business models is aiding organization and clearly bifurcating different party interactions. It makes keeping accounts and supervising financial dealings easy. It also helps in preparation of future plans since the company can observe weak transactions and work on strengthening those ties. For example, if a company is facing problems due to poor communications and transactions between the business and consumer, it becomes evident when the businessman studies this model and can rectify the problem. E-business models save time and decrease the risk factor in a business since they help in nipping the problem in the bud.