Scope of E-business

E-business refers to the buying and selling of goods and services through the internet along with conducting other important business functions over the internet. E-business is a broader term than e-commerce.

E-business includes the management functions of planning, organising, marketing and production conducted electronically. The other functions that are covered under e-business include inventory management, product development, human resource management and accounting and finance.

E-business scope can be explained with the following four directions.

  1. B2B Commerce
  2. B2C Commerce
  3. C2C Commerce
  4. Intra B-Commerce

Let us learn about all these in detail.

B2B Commerce: In B2B Commerce, the two parties involved in business transactions are both business firms. For example in the manufacturing of automobiles, there is a requirement for a lot of components and these components can be provided by an organisation that is an ancillary of the automobile industry.

Both the businesses need to collaborate with each other in order to be successful.

Another example can be of the e-commerce company Flipkart which lets users choose and purchase products using the mobile app. They also formed another company called Ekart logistics to take care of the product delivery.

This can be seen as an arrangement between two companies to function together in a business.

B2C Commerce: B2C commerce implies that the interaction occurs between the business owner and customer. In this type of commerce, the goods and services provided by the business is directly consumed by the consumer.

One example of this type of commerce can be OTT media company Netflix that provides digital content for viewers with a paid subscription model. The consumers purchase subscriptions in order to view the digital content.

C2C Commerce: This type of business originates from the customers and the end point of the business is customers only. This type of business is suitable for dealing with products or goods where there is no market mechanism involved.

One such example can be eBay where users sell their items to be purchased by some other user. A similar model can be seen in India in the form of OLX where users can sell their used items by listing the product along with price.

Intra B-Commerce: This type of business occurs within the organisation, where the requirement for a product is met within the divisions of the organisation.

The different activities that come under the intra b-commerce are recruitment and hiring of employees which is a coordination between management, human resources and finance departments.

This concludes our article on the topic of Scope of E-business, which is an important topic in Business Studies for Class 11 Commerce students. For more such interesting articles, stay tuned to BYJU’S.

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