Estimated reading time: 5 minutes
Without a question, eCommerce has risen dramatically and continues to increase year after year. Today, a firm that does not have a digital presence is at a significant disadvantage. However, you should not consider an eCommerce website to be something you « must » have in order to exist (although you do).
Instead, consider it a huge chance for your company to achieve levels of development and success that would not have been feasible before the internet.
The eCommerce business model is determined by who buys and who sells. Customers are not always just customers; they might be other businesses or even government agencies.
Similarly, a seller isn’t always a company, as consumers sell products to one another all the time through numerous channels. Some firms may also employ more than one of these models at the same time, for example, selling to customers and other businesses.
Of course, in order to accomplish this successfully, certain considerations must be taken in order to properly deal with both sorts of clients. In this article, we’ll go over each of these points in-depth to help you obtain a better understanding of different types of eCommerce business models.
B2B eCommerce
B2B is an abbreviation for Business to Business. A B2B vendor, as the name implies, sells goods or services to other companies. In many situations, B2B merchants provide items that end-users would never utilize, such as raw materials required in production.
Other examples of B2B eCommerce include wholesale providers that sell to retailers and suppliers of business goods such as office supplies or branded employee attire.
B2B commerce generates the most income and operates in a market with a constant need to replenish the items supplied. The key drawbacks of the B2B model are that the market is substantially smaller, and the higher size entails more complicated processes.
B2C eCommerce:
B2C is an abbreviation for Business to Consumer. This is the most common business model, in which a merchant sells items or services directly to end-users – individuals. B2C retail is the most popular business model, both online and offline.
B2C business has expanded in tandem with the general rise of eCommerce. Companies can create their own online storefronts, offer their items on bigger markets, or do both. Online purchasing has also made it simpler for local firms to expand their reach far beyond than would have been feasible previously. This implies the possibility of reaching millions of clients.
B2G eCommerce Business Model:
Unlike other sales models, the B2G eCommerce model is complicated and necessitates rigorous adherence to corporate regulations and conditions owing to government oversight and intervention.
In most circumstances, governmental agencies will draft pre-negotiated contracts, issue tenders, and invite enterprises to bid.
Businesses that fulfill the government’s stringent standards will now compute the charge and submit the project’s pricing. The government will then analyze and pick the best-suited firm before signing a B2G contract with them.
C2C eCommerce:
C2C is an abbreviation for Consumer to Consumer. This is the sort of eCommerce in which individuals sell things directly to one another. Consider a yard sale for an offline example. Large online marketplaces, such as eBay, facilitate the C2C transaction procedure for millions of merchants.
C2C can serve as a « gateway » to an eCommerce venture. Consumers may not only sell unwanted products on eBay and other marketplaces. Consumers also can also learn a lot about how to build a product listing, direct it to the correct market, pack and ship a product once it’s sold, and more.
A C2C vendor can earn some additional money while determining whether eCommerce is good for them. Many of today’s thriving eCommerce firms may trace their roots back to a founder. Who discovered they had a natural talent for selling online.
C2B eCommerce:
C2B is an abbreviation for Consumer to Business. This is a business concept in which a single consumer delivers goods or services to a company. Freelance artists, authors, designers, and software developers are ideal examples, as are business attorneys and accountants. Bloggers that sell advertising space on their blogs are involved in a C2B transaction as well.
Mixed eCommerce Business models
Ecommerce technical improvements have eased all forms of business administration activities across all business formats. This has also made it possible for firms to use multiple models at the same time, such as integrating B2C and B2B sales on a single website. It is now feasible for an online business to provide an end-user shopping experience for general customers while also offering bulk wholesaling or other B2B-specific services in a separate section of the website without confusing either group of clients.
B2B clients may be offered different pricing, alternatives, and even items than B2C consumers. Of course, such possibilities are dependent on the operation of the seller’s eCommerce platform.