Different Types of E-commerce Business Model

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Different Types of E-commerce Business Model

Generally speaking, e-commerce is an online transaction between a supplier and a customer. But in broad concept, it is divided into FIVE major types.

Kind of E-commerce Business:

1. B2B

2. B2C

3. C2C

4. C2B

5. C2A

 

1. B2B (Business to Business):

B2B model focused to sell products or services as e-commerce between companies. They start to give products or services with one business then onto the next.

This e-commerce model typically explains the relationship between the producers of a product and the wholesalers who advertise the product for purchase to consumers.

Sometimes the buyer is the end-user, but often the buyer resells to the consumer.

Around 75% of Online e-commerce business is associate with the B2B model.

Example:

Alibaba,

2. B2C (Business To Consumer):

B2C e-commerce represents a retail model, where a business directly offers to consumers, which is directed online instead of in a physical store.
The decision-making process for a B2C purchase is much shorter than a business-to-business (B2B) purchase, especially for a product that has a lower value.
For example, if a housewife wants to buy kitchen cutlery then she may not need to take any permission.
B2C not only sells the product but it is used for services also where end-user is directly connected with the company.

Example:

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3. C2C (Consumer To Consumer) :

C2C eCommerce model focused on the two parties to exchange goods and services and typically make their money by charging transaction or listing fees.

C2C businesses model faces challenges in quality control and technology maintenance.

Example:

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4. C2B (Consumer To Business):

The C2B e-commerce model allows a customer to sell products or services for companies to buy.

Consumers provide products or services to the company, co-operate on projects, and ultimately help businesses increase their profits.

The C2B eCommerce model’s competitive edge is in pricing for goods and services.

Example:

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5. C2A (Consumer To Administration):

Consumer to Administration e-commerce model encompasses all online transactions between individuals and public administration.

Example:

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Wind Up!

Undoubtedly eCommerce business is growing rapidly all over the world due to its beauty of flexibility and gives more happiness than physical shopping.

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