Indonesia presents many opportunities for e-commerce business among other Asian countries. At present the projection shows that e-commerce business in Indonesia will reach a value of US $ 130 billion by 2020. Thus, Indonesia has a great opportunity to continue to increase e-commerce growth and competition with other countries.
Types of E-Commerce Business & Examples
E-commerce (electronic commerce), is the activity of buying and selling goods / services or the transmission of funds or data through electronic networks, especially the internet. But now e-commerce has undergone various developments, ranging from functions to various types of e-commerce.
There are at least seven basic types of e-commerce or e-commerce business forms with different characteristics:
Let's discuss them one by one:
1. Business-to-Business (B2B)
B2B e-commerce includes all electronic transactions of goods or services carried out between companies. Traditional producers and traders usually use this type of e-commerce.
Generally this type of e-commerce is carried out using EDI (Electronic Data Interchange) and e-mail in the process of purchasing goods and services, information and consultation, or sending and requesting business proposals.
EDI (Electronic Data Interchange) is a structured data transfer process, in an agreed standard format, from one computer system to another, in electronic form.
Examples of B2B e-commerce websites are Bizzy and Ralali.
Bizzy is the first eCommerce that has the concept of B2B or Business To Business in Indonesia. Bizzy provides solutions for companies that have problems in the supply of business supplies and services.
Ralali is a B2B eCommerce Indonesia company that sells MRO (Maintenance, Repair, and Operational) products.
With the company PT. Giant Laju Lintang which has been active since 2013, Ralali supplies a wide range of automotive, measuring devices, GPS and other electrical equipment needs.
2. Business-to-Consumer (B2C)
B2C is a type of e-commerce between companies and end consumers. This is in accordance with the retail part of e-commerce which is usually operated by traditional retail trade.
This type can be easier and more dynamic, but also more spread unevenly or even stalled.
This type of e-commerce is developing very fast because of the support of the emergence of websites and the number of virtual shops and even malls on the internet that sell a variety of community needs.
While in developed countries like America, there are many success stories of e-commerce that have succeeded in online retail.
When compared to traditional retail transactions, consumers usually have more information and lower prices and ensure the process of buying and selling to fast shipping.
Some websites in Indonesia that implement this type of e-commerce are Bhinneka, Berrybenka and Tiket.com.
This type of e-commerce is commonly used by sellers or producers who are serious about running a business and allocating resources to manage their own sites.
3. Consumer-to-Consumer (C2C)
C2C is a type of e-commerce that includes all electronic transactions of goods or services between consumers. Generally these transactions are carried out through third parties who provide online platforms to carry out these transactions.
Some examples of the application of C2C on websites in Indonesia are Tokopedia, Bukalapak and Lamido. There, the seller is allowed to directly sell goods through the existing website.
But there are also websites that implement C2C types and require the seller to first complete the verification process, such as Blanja and Elevenia.
4. Consumer-to-Business (C2B)
C2B is a type of e-commerce with a complete reversal of traditional exchange or buying and selling transactions. This type of e-commerce is very common in multi-resource based projects.
A large group of individuals provides their services or products for companies seeking those services or products.
An example is a website where website designers provide several logo choices which later will only be chosen the one that is considered the most effective.
The template maker can upload the template he made on the link provided by MBT, then MBT will sell the uploaded template and share the profits with the template maker.
5. Business-to-Administration (B2A)
B2A is a type of e-commerce that includes all transactions made online between companies and public administration.
This type of e-commerce involves many services, especially in fields such as fiscal, social security, employment, legal documents and registers, and others.
This type of e-commerce has increased in recent years with investments made through e-government.
Companies are required to fill in a number of requirements first before getting services and then proceed with the transaction process.
6. Consumer-to-Administration (C2A)
Type C2A includes all electronic transactions carried out between individuals and public administration.
Examples of areas that use this type of e-commerce are:
Education - information dissemination, distance learning process, and others
Jamsostek - information dissemination, payment and more
Taxes - filing taxes, paying taxes, and others
Health - appointments, information about diseases, payment for health services and more
The example of implementing C2A is the same as B2A, except that the distinction is on the part of the individual public administration and the public administration company.
The B2A and C2A models are equally related to the idea of efficiency and ease of use of services provided to the public by the government, also with the support of information and communication technology.
7. Online-to-Offline (O2O)
O2O is a type of e-commerce that attracts customers from online channels to physical stores. O2O identifies customers in online fields such as email and internet advertising, then uses various tools and approaches to attract customers to leave the online scope.
Although many traditional retail activities can be replaced by e-commerce, there are elements in physical spending that are digitally replicated. However there is the potential for integration between e-commerce and physical retail shopping which is the core of this type of O2O.
Just because there are certain businesses that don't have products to order online, doesn't mean the internet can't play its role in almost all businesses.
For example, a fitness center will not be able to be set up in your living room, but by using O2O services provided by companies such as Groupon Inc., the fitness center can channel its offline business online.
Some large companies with fast growth such as Uber and Airbnb also run their business with O2O type.