E-commerce And eCommerce Business Models

eCommerce

eCommerce business models will give you a brief idea about business models which are used worldwide in eCommerce.

This is a grand era of eCommerce where all businesses are shifting online so rapidly. We also use the word electronic commerce for eCommerce. After the pandemic of covid-19, the importance of eCommerce was enhanced thousands of times because a large number of businesses moved online. All those businesses that were physical bore a massive loss in the epidemic of covid-19.

This was the major reason that a large number of businesses moved online and the IT industry grew in the pandemic situation.

Schools, colleges, universities, and academies introduced their LMS systems for learning, and restaurants and brands also moved on the internet and they continue their sales on the internet by using Facebook pages, Instagram profiles, websites, and mobile apps.

So, before discussing more details about eCommerce we should go through its definition:

“Sales and purchase of goods or services on internet and transfer of money and data for the execution of these transactions is called eCommerce ” 

The eCommerce started back on 11 August 1994, a man sold a CD to his friend on his website NetMarket, an American retail website.

This is the first example of an online sale and purchase with the world wide web(WWW).

Now the system of eCommerce has evolved and it has become very easy to sell goods by using the internet. There are different mechanisms introduced to sell things on the internet even if people are selling their land on the internet. Almost every grand company has its e-system, even small companies have also introduced their e-system after the pandemic of covid-19. 

Global retail eCommerce sales are approximately 4.9 trillion U.S. Dollars by 2021.

There is a huge increment expected in these stats in upcoming years. 

There are different grand eCommerce markets here in this race like Amazon, eBay, AliExpress, Walmart, and many more are there in the digital world. 

eCommerce Models Types

There are four major types of eCommerce models that briefly describe all transactions between businesses and consumers. These types of models help us to understand the type of business. By getting knowledge about these types, we can easily understand the standard of an e-business.

The four types of eCommerce models are:

1. Business to Consumer (B2C):

When a business sells any product(good or service) to an individual, it is called business to consumer model(B2C). In this model a business directly sales its products to individual customers for example:

You buy a book from an online eCommerce store, which means a business is selling its product to an individual. In this case, an online store is a business and you are the individual.

The other example is a customer buying a subscription from Netflix for himself. In this case, Netflix is the business and the customer is the individual who is purchasing a service. 

Business To Consumer

2. Business to Business (B2B):

When a business sells its product or service to another business then we will say it is the business to business (B2B) model of eCommerce. In this model, a business is selling its product or service to another large or small business. 

For example:

If Nestle buys a set of computers from HP, it will be an example of a business-to-business model. In this case, Nestle is also a big business and HP is also a big business and a business is getting the product of another business. 

The other example is if Microsoft sells its software or services to Unilever to fulfil their need. In this case, a business is selling its product to another business. 

Business To Business

3. Consumer to Consumer (C2C):

When a consumer sells his or her product to another consumer using the internet, we can say it a consumer-to-consumer (C2C) model of eCommerce. In this model, a consumer sells anything to another consumer by any online platform.

For example:

You sell your car on OLX to another individual, in this case, a consumer is selling his product to another consumer. 

The other example is: you sell your old furniture on eBay to someone on eBay. In this case, you are the consumer who is selling and the buyer is the consumer who is purchasing a good from another consumer.

Consumer to Consumer

4. Consumer to Business (C2B):

When a consumer sells his or her own service or product online to any business or organization, we will call it a consumer-to-business (C2B) model of eCommerce.

In this model of eCommerce, an individual sells their own product or any service to a grand business. 

For example:

If you are a good photographer and you are selling the license of your photographs to a big organization to use your photographs, we will say you are working on the consumer-to-business model of eCommerce. In this case, you are an individual who is selling your product to a business.

The other example is: 

If you sell your AC to an organization, it will be consumer to business model type.

Consumer to Business eCommerce business model

The whole internet is following these business models in the world of eCommerce. All eCommerce businesses are running around this model. If you are willing to start a business on the internet you have to choose any of them according to your need and interest.

I hope this article was helpful for you. If this article was helpful for you then please tell us in the comment section and also share it with your friends and family members so that they can also get help because sharing is caring. 

4 Responses

  1. Saira says:

    In which e-commerce business model, there are more chances to earn money?

  1. March 11, 2022

    […] is full of professionals and there are grand chances to do business there. You can do work on any business model like B2B, B2C, or C22, etc. There is a flood of opportunities available on LinkedIn to do […]

  2. July 24, 2022

    […] Check all business values and by keeping the stats in mind you should choose your business model like business to business(B2B) or business to consumer(B2C). To get detailed information about eCommerce business models, CLICK HERE. […]

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