eCommerce Business Models

eCommerce Business Models.

Ecommerce is a hot industry right now, so it should come as no surprise to you.

Yes, you read that correctly. Retail eCommerce is expected to reach $4.13 trillion soon, and mobile commerce is expected to account for 72.9 percent of all eCommerce sales, according to experts.

An eCommerce business can’t come at a better time than now with consumer trends toward online and mobile shopping.

What is Consumer to Consumer (C2C) Business Model(Opens in a new browser tab)

Even if you intend to get your online store up and running, you should expect a learning curve to go along with it. Investigate the various types of eCommerce business models and websites as a good starting point.

A better understanding of what business models are available will aid in the decision-making process for running an online store and making money. Now let’s dig deeper into the various eCommerce business models.

Different types of eCommerce business models?

In order to begin an online business, you must first gain an understanding of the various types of eCommerce business models. In general, eCommerce companies can be divided into one of the following four types.

Let’s investigate further.

1. Business-to-business (B2B)

E-commerce between businesses is organised in the same way it sounds. It’s a marketplace where businesses sell their products to one another. Any product that helps a different company’s operations is a type of product.

An excellent B2B example is a software company. Consider the likes of Salesforce, HubSpot, or SurveyMonkey as possible examples. Investing in enterprise software wouldn’t make sense for the typical small business owner, so these products aren’t for them.

How to Create a B2B Marketing Campaign(Opens in a new browser tab)

2. Business-to-consumer (B2C)

The business-to-to-consumer eCommerce model is also easy to understand.. Consumers buy products directly from a company when they do business online or via a mobile device.

eCommerce companies that you and I use every day to buy things like clothing, books, makeup, etc. are B2C eCommerce companies.

Amazon, eBay, and Alibaba are just a few of the most well-known names in business-to-consumer eCommerce.

A B2C company doesn’t have to exist solely online like Amazon or eBay. This is important to keep in mind

It is possible for B2C companies to have a physical store and, if necessary, a web shop. Nordstrom, J. Crew, H&M, and other major fashion retailers are examples of this.

How to start a successful eCommerce Business?(Opens in a new browser tab)

3. Consumer-to-consumer (C2C)

Online shopping platforms help individual buyers find desired items and provide sellers with a built-in audience of potential buyers. They make money by charging sellers a small listing fee or a small commission on final sales. C2C platforms include:

Auction platforms: Selling on an online auction site allows sellers to set a starting price for their items and let buyers bid until one wins. However, if there are few other interested bidders, bidders may find a good deal.

Exchange of goods platforms: Buyers and sellers of physical goods can connect online through various platforms. For in-person transactions, many of these platforms offer both a website and an app option.

Exchange of services platforms: C2C sites allow you to buy and sell services such as dog trainers, web designers, handymen, and vacation home rentals.

Payment platforms: C2C online payment platforms exist to facilitate C2C sales on other platforms. It is possible that these platforms make money by charging users a small fee to withdraw funds.

E-commerce Advantages and Disadvantages(Opens in a new browser tab)

4. Consumer-to-business (C2B)

Consumer-to-business eCommerce business models are the final type of eCommerce business model. An individual consumer or small business owner can sell their products or services to other businesses through this channel.

Good examples of C2B businesses include business consultants, freelance graphic designers, and social media influencers with a large following on social media.

What Is Electronic Retailing (E-tailing)?(Opens in a new browser tab)

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