Since the evolution of eCommerce over a couple of decades ago, it has been replacing traditional trade in many ways. In fact, eCommerce business models have expanded so much that we are part of electronic commerce every now and then. Compare your shopping ways before around 5 years ago and at the present. Well, surely you can find the difference. Visiting the store to buy stuff has been an old way. We’re used to surfing through the internet to find the things we love and get it delivered to our doorsteps. Though eCommerce just focuses on digital buying and selling of goods and services, it has multiple types that have their own unique features.
There are two bases for classifying eCommerce. One is the traditional types of eCommerce which are currently in practice. And the other one is the modern types which have just started to evolve and may rule the market in the future.
Firstly, let’s know about the traditional eCommerce business models that have been the base of today’s trade market:
1. Business to Business (B2B)
When the business sells goods or services to another business via online channels, it’s Business to Business eCommerce. The goods and services aren’t directly sold to individual consumers. Sometimes the buyer business is the end-user. But in some cases, the goods and services are resold to customers. B2B has a long sales cycle as the products to be traded are of high value and making a deal requires lots of thoughts and preciseness. The deals made in B2B eCommerce are usually recurring.
An example of B2B eCommerce can be a food delivery business buying packaging materials, storage boxes, etc. from a logistics company. A business buying different materials from a manufacturing company to resell it to consumers is also B2B eCommerce.
2. Business to Consumer (B2C)
When a business sells goods and products directly to the end-user i.e. consumer through online channels, it’s Business to Consumer eCommerce. B2C is one of the most common types of eCommerce. Most of the businesses adopt this model of eCommerce. However, B2C has a shorter sales cycle and the deals are usually non-recurring. Though B2C eCommerce might’ve higher orders, the average value is lower than B2B eCommerce. This model includes not only the products but also the services.
Buying and selling of clothes, groceries, furniture, etc. is part of B2C eCommerce. Also, booking a plumbing service for your house from an online platform is a B2C eCommerce.
3. Consumer to Business (C2B)
In Consumer to Business eCommerce, the consumers sell the goods and products to the business, either for the use of business or for the purpose of reselling. This type of eCommerce model allows consumers to have the power to sell their unique creations to the businesses. Sometimes the businesses use the products for their own requirements, making them the end-users. And sometimes the business buys the product from the consumers, puts on profit margin, and resells them to other consumers. C2B eCommerce model is a great platform for the consumers who have their own product to el in the market without forming their own business line.
The common example of C2B eCommerce can be people offering stock photos and guest blog posts to a business. Similarly, people selling their own scientific inventions to business for it be sold to other consumers through the company is also a kind of C2B eCommerce.
4. Consumer to Consumer (C2C)
Consumer to Consumer eCommerce is also the popular type of eCommerce model followed widely by the general population. In this model, the business connects the consumers so that they can directly exchange goods and services through the help of an open online platform. The business makes the money by charging transactions or listing fees. But business doesn’t directly involve in selling or buying goods and services. This model of eCommerce has been providing individuals to involve in trade in an easy way.
Besides, some of the eCommerce models are just emerging and can be the popular ones in the future. The modern emerging eCommerce business models are slowly pacing up and adapting to the market. These models change the mainstream definition of eCommerce which is digital buying and selling products to consumers. These eCommerce models help businesses to act as third parties in Government activities and ease the citizen’s work. Find out about some new eCommerce models below:
1. Business to Administration:
Also known as the Business to Government eCommerce model, it refers to the trade between Business as suppliers and Government Body as a consumer. The business helps Government bodies as a third party to perform various activities such as keeping a record of their citizens, develop e-services, legal documents. social security and many more.
2. Consumer to Administration:
This model of eCommerce comprises all the activities that take place between public people and the Government via online channels. C2A eCommerce creates an easy communication channel between Government bodies and citizens. Filling online PAN Card Application, Registering company through an online site, applying for a driving license all fall under Consumer to Administration eCommerce.
Various forms of eCommerce have helped the businesses as well as consumers to adopt easier methods of trade. Besides eCommerce has been providing opportunities for businesses as well as consumers to expand wider horizons and possibilities in buying and selling goods and services.