Types of e-commerce applications

In this article, we're going to look at the types of e-commerce applications, but first, let's revise what e-commerce is.

As was already mentioned in the previous article:

E-commerce (Electronic commerce) is a sector of the economy that encompasses all financial and trade transactions conducted through computer networks and business processes associated with these transactions.

In other words, it is buying or selling something via the Internet.

Regarding e-commerce from the perspective of business owners, manufacturers, and suppliers, it involves the promotion and provision of their goods or services via the Internet. And from the buyers’ (customers’) perspective, it entails browsing, selecting, comparing, and ordering these services or goods.

Remote buyer-seller interaction continues to grow rapidly. The most popular method of selling services or goods remains an online store/platform developed as a website. But every business has to develop and improve, keeping pace with modern technologies and consumer needs. In order not to lose (but rather to increase) their target audience and competitiveness, many companies release applications for mobile devices in addition to the main platform/website.

Depending on the interacting parties (business, consumer, administration), the following types of e-Commerce and their applications can be distinguished:

1. Business to Business (B2B) – e-commerce for business.
2. Business to Customers (B2C) – e-commerce for consumers.
3. Customers to Customers (C2C) – e-commerce from consumer to consumer.
4. Customers to Business (C2B) – e-commerce from consumer to business.

Let's take a closer look at each type.

Business to Business (B2B) - e-commerce for business.

This type of e-commerce works on a business-to-business basis, i.e. when one company provides its services or goods to another company, not to ordinary consumers.

For example, a candy company purchases sugar from another candy company to make its products.

Business to Customers (B2C) - e-commerce for consumers

B2C is a type of e-commerce where a company provides its goods and services directly to the user.

For example, a candy company sells candies directly to consumers.

Customers to Customers (C2C) - e-commerce from consumer to consumer

C2C is a type of e-commerce where one consumer sells goods (which they do not produce) directly to another consumer.

For example, a consumer buys candies and sells them to other consumers (a good example is the OLX platform). The manufacturer is not involved in this process.

Customers to Business (C2B) - e-commerce from consumer to business

This type of commerce is the exact opposite of B2C, as in this case, the consumer provides services/goods to the business. 

For example, a person makes handmade (craft) candies and sells them to an online store rather than customers. The store immediately pays the cost of the goods to this person and interacts with customers.

Each of these types of businesses can develop a mobile application with its unique functionality and design. The main goal of such an application should be to attract new customers, retain old ones, and increase profits/sales. To achieve this goal, both the client and the developer must keep in mind that each application should meet the interests and requirements of the consumer, while also being user-friendly and intuitive.

For which platforms should e-commerce applications be developed? 

There are two options – a native iOS application or a hybrid one (for Android and iOS platforms). Why is that? Online stores target a financially capable audience, and this is logical. According to the analytical data, Android is the largest OS with a market share of over 70%. iOS ranks second with around 25%. However, despite this significant difference, the iOS audience is more financially capable. In 2021, the revenue from the Apple Inc. platform amounted to $21.5 billion, nearly twice as much as Android's $12.1 billion.

Conclusion and Analytics

According to BusinessofApps, mobile e-commerce revenue reached $3.56 trillion in 2021. This accounts for over 50% of the total e-commerce sales volume. According to experts from Adjust (an app analytics service), compared to the previous year, the number of installations of e-commerce applications on mobile devices increased by 12% in 2021. These figures indicate that the demand for e-commerce apps is steadily growing, and it appears that this trend in the market shows no signs of slowing down.