The three different transaction types are as follows:

1. B2B

   B2B e-commerce is simply defined as e-commerce between companies. This is the type of e-commerce that deals with relationships between and among businesses. About 80% of e-commerce is of this type, and most experts predict that B2B e-commerce will continue to grow faster than the B2C segment. The B2B market has two primary components: e-infrastructure and e-markets. E- Infrastructure is the architecture of B2B, primarily consisting of the following:

2. Logistics - transportation, warehousing and distribution.
3. Application service providers - deployment, hosting and management of packaged software from a central facility.
4. Outsourcing of functions in the process of e-commerce, such as Web-hosting, security and customer care solutions.
5. Content management software for the facilitation of Web site content management and delivery.

6. Web-based commerce enablers (e.g., Commerce One, browser-based, XML-enabled purchasing automation software).

   E-markets are simply defined as Web sites where buyers and sellers interact with each other and conduct Most B2B applications are in the areas of supplier management (especially purchase order processing), inventory management (i.e., managing order-ship-bill cycles), distribution management (especially in the transmission of shipping documents), channel management (i.e., information dissemination on changes in operational conditions), and payment management (e.g., electronic payment systems or EPS).

7. B2C

   Business-to-consumer e-commerce, or commerce between companies and consumers, involves customers gathering information; purchasing physical goods (i.e., tangibles such as books or consumer products) or information goods (or goods of electronic material or digitized content, such as software, or e-books); and, for information goods, receiving products over an electronic network.

   The more common applications of this type of e-commerce are in the areas of purchasing products and information, and personal finance management, which pertains to the management of personal investments and finances with the use of online banking tools.

   B2C e-commerce reduces transactions costs (particularly search costs) by increasing consumer access to information and allowing consumers to find the most competitive price for a product or service. B2C e-commerce also reduces market entry barriers since the cost of putting up and maintaining a Web site is much cheaper than installing a “brick-and-mortar” structure for a firm.

8. C2C

   Consumer-to-consumer e-commerce or C2C is simply commerce between private individuals or consumers. This type of e-commerce is characterized by the growth of electronic marketplaces and online auctions, particularly in vertical industries where firms/businesses can bid for what they want from among multiple suppliers.

   This type of e-commerce comes in at least three forms:

9. Auctions facilitated at a portal
10. Peer-to-peer systems

11. Classified ads at portal sites

    Consumer to consumer e-commerce has many benefits. The primary benefit to consumers is reduction in cost. Buying ad space on other e-commerce sites is expensive. Sellers can post their items for free or with minimal charge depending on the C2C website.

    C2C websites form a perfect platform for buyers and sellers who wish to buy and sell related products. The ability to find related products leads to an increase in the visitor to customer conversion ratio. Business owners can cheaply maintain C2C websites and increase profits without the additional costs of distribution locations.