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Understanding the C2G E-commerce Business Model

Though it has not been long since Indonesia has its first e-commerce, the e-commerce industry has experienced a meteoric rise ever since. However, many of us still have traditional views of the e-commerce sector. We often think that e-commerce is just a place for businesses to sell their product/services to consumers or vice versa. However, the e-commerce business model has become more diverse.

In general, there are six types of e-commerce business models. In the previous article, we have talked about C2C e-commerce business model. The other business model that we rarely talk about is the C2G e-commerce business model. C2G is the other business model that involves government bodies other than the B2G business model.

What is C2G E-Commerce?

C2G stands for Consumer to Government business model. C2G e-commerce is a platform where customers can make electronic transactions with governmental bodies in exchange for feedback or information directly. In other words, the C2G e-commerce business model bridge the gap between the citizens and government, who would otherwise be distant. The C2G e-commerce can make transactions more accessible and convenient with government bodies.

Types of C2G E-Commerce transaction

As an e-commerce platform, a C2G marketplace allows consumers to submit their queries through their online platform. Some common transactions are education tuition bills, electricity, tax payments, BPJS payments, and many more. Beyond transactions, C2G can also be a platform where governmental bodies distribute information to the citizens.

Examples of Consumer to Government Platform

Nowadays, many e-commerce platforms provide a more effortless transaction from the consumer to the government bodies. Some famous platforms that also offer this service are Tokopedia and Shopee, where the public can pay taxes to the government, tuition fees, or electricity bills.

The rise of E-Government in Indonesia

With the rise in internet penetration rate in Indonesia in the past few years, government institutions have started to utilize the internet in their operation. This phenomenon is called e-government (e-govt), which uses the internet to deliver governmental information to the public. In Indonesia, the e-government is regulated under Instruksi Presiden Republik Indonesia Nomor 3 Tahun 2003 about strategy of e-governance building.

The e-government is a way to increase transparency and accountability and simplify the interactions between citizens and government. The rise of e-government does not just involve government and citizens but also invites third-party actors from the private sector to jump in. The involvement of big online marketplace startups such as Tokopedia and Shoppe in the C2G sector is beneficial because these startups have already become part of the citizens’ daily life. Thus, they can be a one-stop application for all the citizens’ needs.

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