SAID BOKO ADAN - SCT221-C004-0030/2018

KEVIN KIPKEMEI - SCT221-COO4-0030/2018

TYPES OF BUSINESS MODELS

E-commerce business models can generally be categorized into
the following categories:

• 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)
1. Business - to - Business
• This is a business model whereby one business entity sells its products to an
intermediate buyer who then sells the product to the final customer. As an
example, a wholesaler places an order from a company and after receiving the
consignment, sells the end product to the final customer who comes to buy the
product at one of its retail outlets. For example; Mercedes selling CarMax ten
vehicles to be bought by customers.
2. Business - to - Consumer

• This is a business model whereby the business sells its products

directly to a customer. A customer can view the products shown on the
website. The customer can choose a product and order the same. The
website will then send a notification to the business organization via
email and the organization will dispatch the product(s) to the customer.
The most popular B2C types:

• Stationary points of sale - It is about all kinds of brick-and-mortar stores. Any large
or small shop near your house, even a tobacco kiosk, is a B2C business

• Mobile points of sale - Hot dogs on wheels, portable coffee carts, and even
individuals (hawkers) that sell goods on the street are good examples of mobile points
of sale

• Catering - such as fast food networks (KFC or Big Square), cafes, restaurants, diners
and bars

• E-commerce - It is the biggest sector, including all kinds of online stores, from
specialized like Oriflame or DeWalt, to general ones like Amazon. It is about any
product or service aimed at the final consumer
3. Consumer - to - Consumer
• This model helps consumers to sell their assets like residential property,
cars, motorcycles, etc., or rent a room by publishing their information on
the website. Website may or may not charge the consumer for its
services. Another consumer may opt to buy the product of the first
customer by viewing the post or advertisement on the website. A good
example is jiji or pigiame
4. Consumer - to - Business

• In this model, a consumer approaches multiple business organizations

for a particular service. The consumer places an estimate of the amount
he or she wants to spend for a particular service. For example, the
comparison of interest rates of personal loan or car loan provided by
various banks via websites. A business organization who fulfills the
consumer's requirement within the specified budget, approaches the
customer and provides its services. An American company Priceline.com
is a typical example of C2B. 
5. Business - to - Government
• B2G model is a variant of B2B model. They are mostly used by
governments to trade and exchange information with various business
organizations.
• Such businesses are accredited by the government and provide a
medium to businesses to submit application forms to the government.
• Public tenders, businesses that pay taxes, file reports, selling goods to
governmental institutions are the best examples of B2G model.
6. Government - to - Business
• In this model, the government approaches business organizations via
websites. Such websites support auctions, tenders, and application
submission functionalities.
• The objective of G2B is to reduce burdens on businesses, providing one-
stop access to information and enable digital communication.
• Involves the sale of government services and goods along with procurement
facilities, having benefits for both businesses and governments.
• For businesses, G2B interactions can result in increased awareness of
opportunities to work with the government and in cost savings and improved
efficiency in performing transactions.
• For governments, G2B interactions offer benefits in reducing costs and
increasing efficiency in procurement processes plus providing new avenues
for selling surplus items.
Government to Business model (cont’d)
7. Government to Citizen(s)
• Governments use G2C model websites to approach citizen in general.
Such websites support auctions of vehicles, machinery, or any other
material.
• Such website also provides services like registration for birth, marriage
or death certificates.
• The main objective of G2C websites is to reduce the average time for
fulfilling citizen’s requests for various government services.