DAY - 5 Traditional Types of Ecommerce Business Models

 Day - 5 

Identify different types of ecommerce business classifications/models (e.g. Business to Business).

World has changed a lot since 10 years, we used to have lots of struggle to find a single item doing shopping. After Covid - 19 Pandemic everything we are doing online shopping, bookings, communication and doctor consultation.

Innovative ecommerce businesses have transformed the way we shop today and redefined what is possible.

Four Traditional Types of Ecommerce Business Models

1. B2C – Business to consumer.

B2C, or business-to-consumer, is used to describe a commerce transaction between a business and an end consumer. Traditionally, the term referred to the process of selling products directly to consumers, including shopping in-store or eating in a restaurant. Today it describes transactions between online retailers and their customers.

B2C innovators have leveraged technology like mobile apps, native advertising and remarketing to market directly to their customers and make their lives easier in the process.

And B2C doesn’t only include products, but services as well.

2. B2B – Business to business.

B2B ecommerce, or business-to-business electronic commerce, describes online order transactions between businesses.

Because orders are processed digitally, buying efficiency is improved for wholesalers, manufacturers, distributors and other types of B2B sellers. B2B transactions generally have a longer sales cycle, but higher order value and more recurring purchase.

In 2020, close to half of B2B buyers are millennials — nearly double the amount from 2012. As younger generations enter the age of making business transactions, B2B selling in the online space is becoming more important.

3. C2B – Consumer to business.

C2B is the complete opposite of the traditional system. Those who are usually considered as end-users develop services and products consumed by organizations and businesses they purchase from

In other scenarios, instead of a company advertising a product or service to prospects, customers now demand a product or service at a certain price that they are happy with and wait for the business to fill the gap.

Recent innovators have creatively used this model to connect companies to social media influencers to market their products.

4. C2C – Consumer to consumer.

C2C, customer to customer, or consumer to consumer, is a business model that facilitates the transaction of products or services between customers.

Thanks to the internet, bigger intermediary companies have fostered more C2C interaction. The most prominent examples of C2C include eBay, an online auction site, and Amazon, which acts as both a B2C and a C2C marketplace. eBay has been successful since its launch in 1995, and it has always been a C2C. Anyone can sign up and begin selling or buying, giving an early voice to consumers in the e-commerce revolution.

C2C businesses benefit from self-propelled growth by motivated buyers and sellers, but face a key challenge in quality control and technology maintenance.