Types of Ecommerce Business Models

Picking the right model for your web business is very important, experience is central for keeping the store above water and obtaining legitimate advantages. Regardless, when organizing the web business experience, various people unfortunately jump straightforwardly to the fine nuances and neglect to recollect that this depends on what you mean to sell and what model you embrace for selling your stock. If viably executed, an online business experience can transform into an enormous sort of income.

Ecommerce Business Models

1.Business-to-Business (B2B)

2.Business-to-Consumer (B2C)

3.Consumer-to-Consumer (C2C)

4.Consumer-to-Business (C2B)

1.Business-to-Business (B2B)

If the nature of your products or services is geared towards meeting the needs of businesses, setting up a B2B strategy is your best bet. Networking and reaching out is a bigger part of this strategy. A big advertising budget is not of much help.

The advantage of this business model is that order sizes are usually large because a business order products from another business, and repeat orders are very common in this business model, if you maintain the quality of your products and services consistence. An example of a great B2B model is Alibaba.

2.Business-to-Consumer (B2C)

This is the model you should adopt if your products or services are targeted primarily towards individuals and sell them something directly. The potential customer finds your website and determines whether your product could address their pain points or not.

After browsing the store, the customer may decide to place an order. An example of a successful B2C business is Amazon.

3.Consumer-to-Consumer (C2C)

Customer-to-Customer (C2C) is an idea novel to web based business. This is essentially because of the sheer interest of the stages like Craigslist, OLX, and eBay.

These platforms allow their users to trade, buy, sell, and rent products and services. In all transactions, the platforms receives a small commission. This business model is complex and requires careful planning to operate. Many platforms have failed, generally due to legal issues.

4.Customer to-Business (C2B)

Customer-to-Business (C2B) business model is another great concept that is popular mainly due to platforms that cater to freelancers. In C2B,  freelance workers work on tasks provided by clients. Most of these clients are commercial entities and freelancers are often individuals. In simpler terms, consider C2B is a sole proprietorship serving larger businesses.

Reverse auction websites, freelance marketplaces, affiliate marketing all form part of this business model. Again, this model requires planning due to the legal complexities involved.