Different Types of E-commerce Business Model
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Different Types of E-commerce Business Model

Nisha
April 29, 2020
3 MIN READ

April 29, 2020

Different Types of E-commerce Business Model

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The e-commerce industry is expected to continue its steady growth, with global e-commerce sales projected to reach $6.54 trillion by 2023, according to Statista.

Ecommerce is one of the most fascinating and rapidly growing sectors in the world today. It's a game-changer, an industry disruptor, and a powerhouse of innovation that has transformed the way we shop and do business. Whether it's online marketplaces, shopping carts, or digital payments, ecommerce has opened up a world of opportunities for businesses and consumers alike.

Simply put, it involves the buying and selling of goods and services over the internet, with transactions taking place between suppliers and customers. But in broad concept, it is divided into FIVE major types. Each of these types has its own unique characteristics, and understanding them can be key to success in the world of online business.

Kind of E-commerce Business:

  • B2B

  • B2C

  • C2C

  • C2B

  • C2A

 

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. It involves transactions between companies, such as manufacturers selling products to wholesalers.

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 is a great example of a Business-to-Business (B2B) e-commerce business. It is a Chinese multinational conglomerate that provides a platform for businesses to connect and engage in global trade.

B2C (Business To Consumer)

B2C e-commerce business 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 is used for services also where the end-user is directly connected with the company.

Example:

A great example of a Business-to-Consumer (B2C) e-commerce business is Shopify. The platform allows individuals and businesses to create their online stores and sell products to customers worldwide.

C2C (Consumer To Consumer)

C2C eCommerce business model focused on the two parties to exchange goods and services and typically make their money by charging transaction or listing fees. It involves transactions between individuals, such as selling goods on online marketplaces like eBay or Etsy.

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

Example:

eBay is a well-known example of a Consumer-to-Consumer (C2C) e-commerce business. It is an online marketplace that allows individuals to buy and sell products to one another.

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. It involves transactions where consumers provide products or services to businesses, such as freelancers providing services to companies.

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

Example:

A great example of a Consumer-to-Business (C2B) e-commerce business is Upwork. Upwork has become a leading player in the C2B e-commerce industry and has helped many businesses and professionals succeed in the gig economy.

 

C2A (Consumer To Administration)

Consumer to Administration's e-commerce model encompasses all online transactions between individuals and public administration. This type of e-commerce involves transactions between businesses and government agencies. It involves businesses providing products or services to government agencies, such as providing software or consulting services to government agencies.

Example:

One example of a C2A e-commerce business is the website of the United States Citizenship and Immigration Services (USCIS), which allows individuals to apply for various types of visas and citizenships online.

Wind Up!

The beauty of e-commerce lies in its flexibility and convenience. With the click of a button, consumers can access a world of products and services from the comfort of their own homes. It's no surprise that this business model is growing rapidly all over the world, bringing happiness and satisfaction to millions of shoppers.

How Qortechno can help Ecommerce business to grow online?

Qortechno can help e-commerce businesses grow online by creating an optimised Ecommerce website that's user-friendly, secure, and responsive to all devices. We also provide ongoing support and maintenance services to ensure the website stays updated, helping businesses attract more customers and increase sales. So, let's connect with our executive to learn more!

 

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Written by Nisha

Nisha is a CEO Qortechno where she helps businesses shine in the online world. Nisha's passion for innovation and commitment to excellence have propelled Qortechno to new heights.

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