There is no doubt that the trend of eCommerce has grown exponentially and continues to enlarge every year. Nowadays, we are living in the age in which business without an online presence is a disadvantage. Due to the advanced technology eCommerce business is no more complicated.

In eCommerce business, it is not necessary that your customers are only individual customers but they can be other businesses or governments or administration. Same way with the seller. Sometimes it’s possible that some businesses use more than one business model.

Many upcoming eCommerce business owners don’t know what different types of eCommerce business models available to them. When we hear the word eCommerce the first thing that comes in our mind is that the transactions happen online.  If you are starting eCommerce business then you will fall in one of the below categories. There are mainly six types of eCommerce business models listed below.

  • B2B eCommerce
  • B2C eCommerce
  • C2C eCommerce
  • C2B eCommerce
  • C2A eCommerce
  • B2A eCommerce

Each business model has its own benefits and solutions. Ecommerce business model depends on who are buyers and who are sellers. Knowing which business model fits in your idea brings success business strategy.

1. B2B eCommerce

Business to Business eCommerce: When online transactions happen between one business to another business, it’s called the B2B eCommerce business. For example, one company buys raw material or services or goods to make other products. Another example is the wholesalers purchases something online and then selles it, it’s B2B eCommerce.

B2B selling in online space a huge scope in upcoming years. Sometimes this allows wholesalers to stay ahead in the competition. B2B business has complex transactions compared to B2C business transactions.

When you apply the B2B eCommerce model, focus on omnichannel user experience, provide all users with single views, reduce the complexity, and make all transactions easy.

2. B2C eCommerce

When businesses sell products to consumers in the online marketplace with the help of the internet, it is called Business to Customer(B2C) eCommerce business. This kind of business transaction we all do commonly.

For example, we purchase products from amazon or Flipkart, which is a B2C eCommerce business. When retails business takes place online, it’s the B2C eCommerce business.

“Anything you buy online as a consumer — think wardrobe, household supplies, entertainment — is done as part of a B2C transaction.”

In B2C eCommerce, customers have many choices to buy the products compared to retails stores. The majority of businesses try to apply this model because it looks traditional retails business. B2C eCommerce eliminates the need of going into physical stores but the complexity and cost of logistic is a barrier. When implementing this model, consider all challenges in eCommerce that you will be facing and it’s solutions. 

3. C2C eCommerce

Consumer to consumer business deals happen on the online marketplace is the C2C eCommerce business. We can say that an online transaction between two customers is C2C eCommerce.

C2C eCommerce is mostly done through third-party platforms. For example facebook marketplace, PayPal, etc.

The goal of C2C eCommerce is to help buyers and sellers to locate each other. Third-party websites allow customers to trade, sell, and buy the products and take some commission. So, consumers don’t need to create a separate eCommerce website to sell the products.

This kind of third-party site is called the marketplace. In C2C business, technology maintenance and quality control is a big challenge.

4. C2B eCommerce

C2B ECommerce means consumers selling products or services to businesses online. Consumer to Business(C2B) model is less discussed in the eCommerce industry but it also an important one.

When the consumer makes available their services or products to companies for purchase online, it is C2B eCommerce Model.

For example, the freelancing website connects freelancers to businesses. Affiliate marketing services also consider as the C2B model.

We can say that customers are demanding the services for a price that they want to pay. In other words, we can say that now consumers can leverage their influences.

5. C2A eCommerce

In C2A eCommerce, the online transaction happens between consumer and public administration. Consumers to Administration (C2A) is also known as Consumer to Government(C2G).

The typical example is many times we pay electric bills online on government websites, it is a C2A eCommerce model. So, we can say that C2A mostly depends on the government.

C2A allows consumers to receive information, make payments, and initiate direct communication with government or authoritative parties.

6. B2A eCommerce

Business to administration involves online transactions between businesses and public sectors. Here public administrators are most of the time governments so B2A is also called Business to government(B2G).

We can say that B2A eCommerce is the marketing of public sectors with the help of the online marketplace. For example, businesses do bidding on government tenders online.

Nowadays, so many government branches depend on other services and other businesses provide this kind of service to the government.

Conclusion:

The eCommerce industry is rapidly growing and no one wants to stay behind in this race. By parting the eCommerce business into different categories, it becomes easy to compare and understand the differences. Before starting the eCommerce business, understand all types of eCommerce business and then decide in which market you want to serve. MNS Technologies have experience in all the eCommerce model. As being the best website development company in Rajkot, we serve the best eCommerce development service to grow our customer’s business to a new horizon. If you are facing any issues with your eCommerce business, you can reach out to us.