Getting started in eCommerce can be a confusing process. One of the first steps you should take is deciding what business model is right for your eCommerce vision. With hundreds of business models to replicate, finding the model that is right for you is simple. The main question to ask yourself is; Who do I want to sell to? Knowing the answer to this question will help you save time and money.
Below we discuss four of the main business models as it relates to eCommerce: Business to Consumer (B2C), Business to Business (B2B), Consumer to Business (C2B), and Consumer to Consumer (C2C).
Business to Consumer (B2C)
The top eCommerce site consists of Business to Consumer (B2C) sites. B2C refers to businesses selling products or services to consumers directly rather than business selling to business or consumer selling to consumer. In a B2C market, there is no middleman involved.
Many companies throughout the world are considered B2C sellers where online retailers reach out to their consumers through the internet to make sales. The behavior of their consumers is the primary driver for their business decisions.
Business to Business (B2B)
The second most popular eCommerce model is Business to Business (B2B). These sites consist of businesses making transactions with other businesses rather than directly to consumers. This is very common between businesses who are looking to source materials for their production. Some examples of B2B websites are MailChimp, Salesforce, Dropbox for Business and Slack.
Consumer to Business (C2B)
Consumer to Business (C2B) sites are typically centered around the consumers. They create value to the businesses and in return, the businesses consumer the value from consumers. Consumers also contribute to the marketing and data of the company. Consumers then profit from the flexibility of the company, direct payment, and free or reduced price on products or services from the business. An example of this consists of consumers writing reviews and sharing the product as an influencer for the company.
Consumer to Consumer (C2C)
Consumer to Consumer (C2C) sites provide commerce between individuals. It connects individuals to do business with each other. Typically, this trade is done in an online environment and is considered a new and upcoming model for e-commerce technology. Some examples of C2C sites include Craigslist, Etsy, eBay, etc.
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