E-commerce, which began in the early 80’s, is held mainly between business entities on the Internet. E-commerce activities primarily included buying and selling complementary products and services between business entities. In the early 1990s, e-commerce expanded, and large and small organizations began to trade the Internet with diverse audiences as a substitute for or in addition to the traditional trading method
Business models in e-commerce
E-commerce is characterized by some business models that differ mainly in the target audiences to which they apply. In this review, we will refer mostly to the three common business models.
Business to Business – B2B is a model that supports transactions between business entities. The B2B sector is characterized by the existence of contractual engagements between the business entities, the engagements are usually long-term, and often, the payment is not in cash, but within the framework of credit lines. Transactions are generally not performed openly but only after identification with the B2B system
Business to Customer – B2C – is a model that supports the execution of transactions between companies and casual surfers. The surfer may come to this virtual store during a targeted search for a product he wants or following a publication he saw. In B2C transactions, the payment is usually charged through an online SSL-secured clearing system.
Multi-Level Marketing – A sales method in which the seller receives profits on the sale of the products he sells to end customers and on products sold by those he sells to them so that the earnings of the agent grow as the structure below it increases. The agent is rewarded for his sales, but also, usually, for recruiting additional sales agents and selling the products to these recruits