E Commerce Business Model Examples – Many people only know about e-commerce and its basics but very few of them know the types of e-commerce business models, so in this post, I will talk about them.
Suppose we have a company and want to sell our goods or services online through our website or any other online resource, then it can be referred to as B2C model.
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An excellent example of that is Amazon or eBay. We call their business, the Business to Consumer model.
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Consumer-to-business or C2B e-commerce involves the sale of goods and services to a business entity through a website.
C2B is the complete reverse of the B2C model; If we reverse the process of the business-to-consumer e-commerce model, we call it the consumer-to-business model.
If the services or products create value for the business organization, they will order these services or products, but in most cases, services.
Suppose a customer charges 100$ for a particular service and the business needs that service because it will help them in some way, so they can order that service.
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A business firm, also known as a manufacturer of products, sells products to wholesalers and the wholesaler resells them.
A wholesaler goes to a trading company’s website or any other online resource and orders products in bulk.
When the wholesaler receives the products, the wholesaler can sell the same products to their customers at a higher price and refer to it as a business to business or B2B model.
Consumer-to-consumer or C2C e-commerce takes place between two users, where one user sells an item through an online auction, while another user buys the item by placing the highest bid.
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C2C is also known as C2B2C because the transaction is done between consumer to consumer but through business entity through OLX or eBay or other similar sites.
Wants to sell a car, so he/she can put his/her car on a website like OLX or eBay.
B2A includes different services and some of them are financial transactions, social security, legal documents and other government related activities.
An excellent example of a B2A model is Accela; It is a software company that provides government software solutions and public access to government services such as permitting, planning, licensing, public health, etc.
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The C2A e-commerce model helps users post their queries and request information directly from their local governments/authorities to government sectors.
Some examples of C2A are dissemination of information, distance education, distribution of information through social security, electronic tax filing, payment of health services, etc.
There is no doubt that e-commerce is growing at an unprecedented rate across the globe because it offers flexibility and is more enjoyable than physical shopping.
If you are still confused or want to give your feedback, please let me know in the comments section below.
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Please login again. The login page will open in a new tab. After logging in you can close it and return to this page. Electronic commerce (ecommerce) refers to companies and individuals who buy and sell goods and services over the Internet. Ecommerce operates in a variety of market segments and is conducted through computers, tablets, smartphones and other smart devices. Almost every imaginable product and service is available through ecommerce transactions, including books, music, airline tickets, and financial services such as stock investing and online banking. Also, it is considered a very disruptive technology.
As mentioned above, ecommerce is the buying and selling of tangible products and services online. It involves more than one party, including data or currency exchange, to process the transaction. It is part of a larger industry called electronic business (eBusiness), which includes all the processes required to run a company online.
Ecommerce has helped businesses (especially niche businesses like small businesses) gain and establish a wider market presence by providing cheaper and more efficient distribution channels for their products or services. Target ( TGT ) has replaced its brick-and-mortar presence with an online store that lets customers buy everything from clothes and coffee makers to toothpaste and action figures from their homes.
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Providing goods and services is not as easy as it seems. It requires a lot of research about the products and services you want to sell, the market, the audience, the competition, as well as the expected business costs.
Once that is confirmed, you will need to come up with a name and set up a legal structure such as a corporation. Next, set up an ecommerce site with a payment gateway. For example, a small business owner who operates a clothing store can set up a website that advertises their clothing and other related products online and allows customers to pay by credit card or through a payment processing service such as PayPal.
Ecommerce can be thought of as a digital version of mail-order catalog shopping. Also known as online commerce, ecommerce is a transaction between a buyer and a seller that leverages technology.
Ecommerce has changed the way people buy and consume products and services. More and more people are turning to their computers and smart devices to order goods, which can easily be delivered to their homes. As such, it has disrupted the retail landscape. Amazon and Alibaba have gained significant popularity, forcing traditional retailers to make changes in the way they do business.
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But that’s not all. Not to be outdone, individual sellers are increasingly engaged in ecommerce transactions through their own personal websites. And digital marketplaces like eBay or Etsy act as exchanges where many buyers and sellers come together to conduct business.
U.S. The Department of Commerce recognizes ecommerce business as transaction sites, static content sites, online marketplaces, and auction sites.
Most of us have shopped online at some point, which means we’ve participated in ecommerce. So it goes without saying that ecommerce is everywhere. But very few people know that ecommerce has a history that predates the dawn of the Internet.
Ecommerce actually dates back to the 1960s when companies used an electronic system called electronic data interchange to facilitate the transfer of documents. This was not the first transaction until 1994. happened In this case, a CD was sold between friends through an online retail website called Netmarket.
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The industry has undergone a lot of changes since then, resulting in great evolution. Traditional brick-and-mortar retailers have had to embrace new technology to stay afloat as companies like Alibaba, Amazon, eBay and Etsy become household names. These companies have created a virtual marketplace for goods and services that consumers can easily access.
New technology continues to make it easier for people to do their online shopping. People can connect with businesses through smartphones and other devices and by downloading apps to make purchases. The introduction of free shipping, which reduced costs for consumers, also helped boost the popularity of the ecommerce industry.
Depending on the ecommerce company’s products, services, and organization, a business can choose to operate in different ways. Here are several popular business models.
B2C ecommerce companies sell products directly to the end user. Instead of delivering goods to an intermediary, a B2C company transacts with the consumer, who ultimately uses the good. This type of business model can be used to sell products (i.e. your local sporting goods store’s website) or services (i.e. a Lancare mobile app to reserve landscaping services). This is the most common business model and what most people think of when they hear ecommerce.
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Similar to B2C, an ecommerce business can sell goods directly to the consumer. However, rather than being a user, that user may be another company. B2B transactions often involve larger quantities, greater specifications, and longer lead times. There may also be a need to set up repetitive items if the ordering company buys for repetitive manufacturing processes.
Some firms specialize as government contractors, providing goods or services to agencies or administrations. Like a B2B relationship, a business produces goods of value and sends those goods to an organization. B2G ecommerce companies often must meet government request for proposal requirements, solicit bids for projects, and meet specific product or service standards. Additionally, there may be joint government efforts to solicit a single contract through a government-wide purchasing agreement.
Established companies are the only entities that can sell goods. Ecommerce platforms like digital marketplaces connect users with other users who can list their own products and execute their own sales. These C2C platforms can be auction-style listings (ie eBay auctions) or warrant further discussion regarding the item or service being offered (ie Craigslist postings). Enabled by technology, C2C ecommerce platforms empower consumers to both buy and sell without the need for companies.
Modern platforms have allowed users to more easily engage with companies and offer their services, especially for short-term contracts, gigs or freelance opportunities. For example, consider
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