4 Types of eCommerce Business Models
Understanding the various eCommerce business models is the first step in launching your online venture. eCommerce businesses often fall into one of the 4 categories listed below.
Let’s look more closely.
1. Business-to-business (B2B)
The framework of the business-to-business eCommerce model is just how it sounds. Businesses use it to sell goods to other businesses. Anything that improves the commercial operations of another company is a type of product.
A software firm is among the greatest illustrations of a B2B corporation. Consider SurveyMonkey, HubSpot, or Salesforce. These are all business-oriented items, so the ordinary mom-and-pop buyer wouldn’t have much need to spend money on corporate software.
2. Business-to-consumer (B2C)
The eCommerce business-to-consumer approach is similarly uncomplicated. It occurs when a company offers goods to customers directly through the internet or through a mobile device.
You and I shop at business-to-consumer eCommerce stores every day to buy items like apparel, books, cosmetics, and other goods.
Among the top B2C eCommerce businesses are behemoths like Amazon, eBay, and Alibaba.
It’s also important to keep in mind that B2C businesses don’t always have to be entirely online like Amazon and eBay.
B2C businesses can launch an eCommerce website and, if it makes sense, a physical store as well. Large fashion shops like Nordstrom, J. Crew, H&M, and others serve as examples of this.
3. Consumer-to-consumer (C2C)
When one consumer creates and sells a product to another consumer, it is referred to as a consumer-to-consumer business model.
A customer could sell goods to another consumer on a website like Amazon, Etsy, or eBay.
Customers are also able to set up a C2C store on their personal website using online eCommerce platforms like Shopify.
4. Consumer-to-business (C2B)
Consumer-to-business is the last eCommerce business model. Here, an individual consumer or company owner offers their goods or services to companies.
Business consultants, independent graphic designers, and social media influencers with a sizable following are good examples of C2B companies.
