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Every ecommerce store has its unique business plan. Many people make money by bringing people to their websites. Choosing an online business model can be difficult, especially for newbies with little or no field experience.

Choosing the correct model for your ecommerce business is critical to keeping it stable and profitable in the long run. Many people make the mistake of leaping right to the small details when establishing an ecommerce business, forgetting that it all depends on what you plan to offer and the model you use to sell your goods. An ecommerce business can become a considerable source of income if properly executed.

What is an Ecommerce Business Model?

An ecommerce business model describes how a company sells goods and services over the internet. Business-to-Government (B2G), Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C), Consumer-to-Business (C2B), and Business-to-Business-to-Consumer (B2B) are the six basic types of ecommerce business models (B2B2C).

What Do You Want to Sell?

The beauty of online commerce is that it allows you to sell almost anything. However, starting with a limited product line is always an excellent idea. Physical things (clothes or shoes) can be sold at your store, as well as digital ones (ebooks are a fantastic place to start) and services like babysitting.

6 Types of Ecommerce Business Models

Ecommerce is a worldwide phenomenon that supports a variety of business concepts. The benefit of ecommerce is that you can choose from a variety of options for your business.

  • Business-to-Business (B2B):

Setting up a B2B strategy is your best bet if the nature of your products or services is focused toward satisfying the needs of businesses. A larger element of this technique is networking and reaching out. A large advertising spend is ineffective. The most difficult task you'll encounter is persuading existing firms that your products/services are good for their operations.

If you maintain the quality of your products and services, this business model has the advantage of big order sizes and frequent repeat orders. Media Center is an excellent example of a B2B model.

  • Business-to-Consumer (B2C):

Business-to-Consumer is the approach to utilize if your products or services are primarily aimed at individuals. A potential customer comes to your website to see if your product can solve their concerns.

The customer may decide to place a purchase after browsing the store. Portugal Footwear is an example of a successful B2C company.

  • Consumer-to-Consumer (C2C):

Customer-to-Customer (C2C) is a term specific to ecommerce. While B2B and B2B business concepts are familiar, C2C is not. This is primarily due to the overwhelming popularity of platforms like Craigslist, OLX, and eBay.

These platforms allow users to trade, buy, sell, and rent products and services. On every transaction, the platforms collect a little commission. This is a complicated business approach that demands meticulous planning. Many platforms have collapsed, owing to legal concerns.

  • Consumer-to-Business (C2B):

Another wonderful notion is the Customer-to-Business (C2B) business model, which has gained popularity thanks to platforms that cater to freelancers. Clients assign tasks to independent workers under the C2B model. The majority of these customers are companies, whereas freelancers are usually individuals. Consider C2B as a sole proprietorship that caters to larger businesses.

This business strategy includes reverse auction websites, freelance marketplaces, and affiliate marketing. Because of the legal complexity, this concept requires planning.

  • Business to Government (B2G):

Business to Government (B2G) is an ecommerce business model in which a company sells its goods to government organizations. You must bid on government contracts if you wish to pursue this ecommerce business strategy. Governments typically issue requests for proposals, and ecommerce companies must then compete for government contracts. A government agency is unlikely to visit your ecommerce website to place an order. However, depending on their needs, certain local government entities are exceptions to the rule.

  • Business to Business to Consumer (B2B2C):

Business to Business to Consumer e-commerce (B2B2C) is defined as when one company sells things to another company, and that company then sells to customers online.

In this form of ecommerce business strategy, three parties are involved. If you opt to go with it, for example, you will need to form a partnership with another company before you can sell its items and pay the partners a royalty on each sale.

This business model is primarily used by ecommerce store owners to acquire new customers. This occurs when, while being familiar with the partner's items, clients are unable to order from them online due to barriers such as geographic location, high shipping prices, and others.

As a result, this ecommerce business strategy is best for novice ecommerce store owners looking to grow their consumer base.