E-commerce has developed into the fastest-growing retail market in these recent years. Since the introduction of the internet, various usinesses have shifted into the digital space. E-commerce can make things pretty easy for manufacturers, distributors, and retailers.
This digital market space has been in trend and businesses need to adapt to this trend as soon as possible. A lot of businesses are confused about which e-commerce model is a good fit for them. Business owners must know how e-commerce is beneficial for them to achieve success in this global market.
Choosing and implementing the right business strategies can be difficult for entrepreneurs who have newly started their businesses. In order to perform and outshine your expectations as a beginner, you must know which e-commerce business model is best for your target market, talents, and resources.
Table of Contents
Types of e-commerce business models
The traditional types of businesses are still the same, they just act differently when it comes to the digital space.
B2C – Business to Consumers
B2C, the business to consumers model is the most common type of traditional business model. Here, businesses sell their products directly to consumers by connecting with them.
This B2C business model does not include any third parties.
We can explain the Business to Consumers business model better through an example. A cloth retailer selling women’s tops is one such example. It is considered to be the simplest form of marketing. In this B2C model, customers know what they need. They select from the available options and purchase according to their preferences.
You must be wondering how this model fits into the digital trend. The B2C model can be easily shifted to e-commerce platforms. Their buyer journey also remains the same after shifting to the online market. They use various online tactics to gather customers. The different ways that B2C businesses use to sell their products to consumers are using mobile apps, social media marketing, etc.
B2B – Business to business
B2B is the type of business model where a business sells its product to another business. This includes retailers, manufacturers, and export agencies. In this type of business model, the buyers are usually an employee of a company who purchases the products on their behalf. It is all about electronic transactions that include the transfer of goods and services between businesses.
Networking plays a vital role in the business-to-business model. The best thing about this model is that it receives large orders, and they are usually repetitive. Businesses of this model use various awareness campaigns to boost their sales. It focuses on establishing strong relationships and engaging more clients in their business. The growth rate of B2B is slower than that of B2C as it is a bit complicated. B2B owners mostly use content marketing to increase their sales.
C2B – Consumer to business
Customer-to-Business, commonly known as the C2B is a business model that is popular mainly due to platforms that cater to freelancers. In this C2B model, freelance workers work on tasks provided by clients. Here, a consumer develops a value to increase the sales of that particular business. C2B businesses allow individuals to offer goods and services to businesses. A site could encourage the customers to publish tasks that they require to be completed and have businesses contest for the assignment in this e-commerce model.
We know that content marketing is in trend. The C2B business model involves hiring a content writer to create quality content for the businesses and increase traffic. The internet provides a lot of platforms to hire intermediaries for this business model.
C2C – Consumer to consumer
This is the type of model that most businesses are still not familiar with. Customer-to-customer e-commerce involves the selling of products between two or more customers. A third party is involved in this model. It is usually a third-party website or online marketplace that arranges transactions on behalf of the customers and sellers.
This is considered to be the most convenient marketing model for both buyers and sellers. The third parties involved in this B2B business model take their share by charging a small fee on every transaction held on the platform. No particular businesses are added to this model of e-commerce business.
Conclusion
Selecting an e-commerce model for your business is a very important decision in order to be successful in today’s date. You must conduct a proper analysis of what will help you find the right market and serve your customer in the best way. The EPCG license must also be used as it helps to stimulate exports. This is an initiative taken by the Indian government to provide financial benefits to Indian exporters. While planning to start an e-commerce business, you must also gather important licences that will provide you with a lot of advantages while trading at the global level.
