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Different Types of eCommerce Business Models Explained

Ecommerce is not just what we all know; it’s not just selling goods to the end buyers. The online shopping (eCommerce) industry is wider than we all think about. However, the fact is the business model is the same for every online shopping website; the product is sold to those who need it.

Selecting the right eCommerce business model is a challenge for many people. If you are a beginner, then you may find it even more challenging to pick the right business model for you. Choosing the right eCommerce business model is crucial for bringing in sustainable profits. Many people make the same mistake of not understanding the eCommerce models before jumping to the final decision.

Also Read: How to Promote Your Business on Social Media – 5 Creative Ways

Here our aims to provide detailed instruction of every eCommerce business model:

B2C – Business to Consumers

This one is the most commonly known model of eCommerce where the businesses sell goods and products to the end buyers like you and me. This business model offers direct interaction with customers. The manufacturing units and retailers operate these platforms so that they can sell their goods to internet users.

B2B – Business to Business

This is another common type of eCommerce business model. The products you buy online are not sold to you directly. Many retailers buy them in bulk and then sell to you at the retail price while enjoying great profits for each product sold online. Both the sellers and buyers are business entities in this business model.

C2C – Consumer to Consumer

Well, this is something you may not know about. C2C, also known as customer to customer, the eCommerce model involves a transaction between two consumers. I bet you must have sold something to someone using the platforms that help sell used goods. This is what we call C2C eCommerce. Many people do it to sell their used goods, while may use them for their commercial purposes.

Also Read: How to Use a Blog to Increase Traffic and Sale of Your eCommerce Store

C2B – Customer to Business

This one may be called the opposite of B2C. In this business model, the customers sell their manufactured goods or services to businesses. It is just like the sole proprietorship serving a larger business. But it’s not important that only businesses can buy the goods or services, anyone interested can buy.

B2G – Business to Government

Business to Government is another lesser known form of eCommerce which involves the government and businesses using central websites to do business with each other. This is also known as public sector marketing where the businesses sell their products or services to multiple government levels.

C2G – Consumer to Government

This eCommerce business model allows individual consumers to post feedback or request information regarding public sectors directly to the government or authorities. Everyone uses this kind of business model, but often are unknown about this. For example, when you pay electricity bill through the government website, you are using this business models.

Also Read: Essential eCommerce Design Elements for Successful Store

Consider what type of service or business model you are planning to follow so you create a platform according to your specific business model needs.

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