Ecommerce businesses have not only been growing in recent years, but they’ve also transformed the way that we shop.
If you’re new to starting an e-commerce business, you could be overwhelmed by the numerous e-commerce business models available.
Here, you’ll learn more about each of the business models and works best for you.
The Different Types of Ecommerce Business Models
1. B2B (Business-to-Business)
If your product is geared towards meeting the needs of businesses, a B2B eCommerce business model would be your best bet.
With this particular model, you’d need to do a considerable amount of networking as regular advertising wouldn’t be of much assistance.
The great thing about the B2B model, however, is that you’ll usually get a bulk order along with repeat orders – especially if your products are of good quality.
2. B2C (Business-to-Consumer)
If your product or service is targeted toward individuals, B2C would be your ideal choice.
B2C is one of the most common eCommerce business models out there and involves consumers going directly to your website and purchasing items – whether that be clothes, makeup, food, etc.
3. C2C (Consumer-to-Consumer)
C2C is a concept that’s unique to the world of eCommerce. With C2C, you’ll be using platforms such as eBay and Gumtree.
These platforms typically receive a small commission from the transaction and allow individuals to trade, buy, sell and rent products and services.
With C2C, there’s a good amount of planning required to ensure success, so that’s something to take into consideration.
4. C2B (Consumer-to-Business)
C2B platforms mainly cater to freelancers. With C2B, freelancers work on projects that’s given to them by clients. These clients are considered to be commercial entities while the freelancers are individuals.
Some examples of C2B include freelance marketplaces such as Fiverr and Upwork, reverse auction websites as well as affiliate marketing.
5. B2G (Business-to-Government)
As the name suggests, with this ecommerce business model, your business would be marketing its products to government agencies.
If you choose to go with this model, you will need to bid on government contracts. Governments would typically put up requests for proposals and companies would need to bid to secure the project.
6. B2B2C (Business-to-Business-to-Consumer)
B2B2C might sound confusing, but it isn’t as complicated as it seems. There are three different parties involved in this business model and you’re essentially the middle person.
If you choose to go ahead with it, you’ll be partnering with another business before selling their products and offering the partner a commission for each sale.
This happens as customers are already familiar with your partner’s products, but may not be able to order them because of shipping costs, a location that they’re in, etc.
The Final Word
If you’re looking to take your next step in the digital world, it’s important to understand the different e-commerce business models and be able to differentiate between them.
To choose your model, make sure that you’re aware of what product you’re selling, who your customers are, and what is best for your product.